Okla. Admin. Code § 785:50-7-6

Current through Vol. 42, No. 7, December 16, 2024

Section 785:50-7-6 - Terms and conditions

(a)Limitation.

(1) For an approved project and application for financial assistance under the water and sewage program, the Board is authorized to loan and advance to the applicant sufficient funds as are necessary and approved for the project in compliance with applicable provisions of indentures for bonds or investments certificates issued by the Board to provide funding for such loans.

(2) The Board may not make grants exceeding the total amount of One Hundred Thousand Dollars ($100,000.00) to any single eligible entity during any fiscal year.

(3) The Board shall not approve nor fund more than one emergency grant to any eligible entity in any twelve month period.

(b)Evidence of indebtedness. The financial assistance loans contemplated within this Chapter of these rules shall be provided by the Board for approved projects pursuant to such notes, bonds, revenue bonds or other appropriate form of evidence of indebtedness from the applicant as the Board may require.

(c)Loan interest and repayment.

(1) The financial assistance loan repayment interest rate to be paid by applicant to the Board shall be as determined by the Board and shall be payable by applicant under such terms and conditions as the Board may require.

(2) The Board may, in its judgment and discretion, provide for the term, condition, manner, form and schedule of applicant's repayment to the Board of principal and interest, and the Board may, in its discretion, defer the repayment of principal or an installment on such assistance for a total cumulative deferment period not to exceed five (5) years.

(d)Security for assistance.

(1) As security for the assistance loan provided by the Board to an approved applicant, applicant must provide if required by the Board a mortgage on any or all facilities of the project for which application is made.

(2) The Board shall require a pledge and lien on revenues to be derived from the operation of the project.

(3) For purposes of this rule, the pledge of and lien on project revenues shall be a pledge of and lien on such project revenues as is necessary to secure repayment of the loan obligation of applicant.

(4) Also, for purposes of this section, if the specific project for which application is made and approved is not of itself a revenue producing unit, then such pledge of and lien on revenues shall be on the revenues of the revenue producing system of which the specific project is a part: and on such other additional revenue sources or systems which may be pledged by applicant to satisfy the loan security requirements necessary to obatin assistance from the Board.

(5) The Board may require additional security which the Board deems necessary, which such additional security may include such pledges, liens, revenues and/or mortgages on additional facilities or systems of and as may be tendered by the applicant.

Okla. Admin. Code § 785:50-7-6

Amended at 15 Ok Reg 2881, eff 7-1-98