Section 0400-46-06-.08 - FINANCING METHOD(1) A construction loan, including loans made solely for equipment, shall be made for a period of time not to exceed 30 years or the useful life, whichever is shorter.(2) A Planning and Design loan shall not exceed five years.(3) Repayment of the interest of the loan will begin upon reimbursement to borrower of costs incurred.(4) Repayment of the principal amount of the construction loan shall begin within 90 days after Initiation of Operation, or within 120 days after the borrower has borrowed 90 percent of the approved loan amount, whichever event occurs earlier.(5) Repayment of the principal amount of loans other than construction loans must begin within two years of loan approval or within 120 days after the borrower has borrowed 90 percent of the approved loan amount, whichever event occurs earlier.(6) The interest rates for SRF loans shall be fixed for the duration of the loan.(7) The Department shall utilize the most current Ability to Pay Index (ATPI) developed by the University of Tennessee Center for Business and Economic Research to determine interest rates for SRF borrowers. Interest rates shall not exceed market values according to appropriate Bond Buyers Index. Local governments which fall within the lower scale of the ATPI will be offered the lower interest rate.(8) The Department will recommend interest rates to the Authority.Tenn. Comp. R. & Regs. 0400-46-06-.08
Original rule filed September 16, 2013; effective December 15, 2013. Rule originally numbered 1200-22-06. Amendment filed April 17, 2015; effective 7/16/2015.Authority: T.C.A. §§ 68-221-1001 et seq. and 4-5-201 et seq.