Current through Register Vol. XLI, No. 24, June 14, 2024
Section 47-31-4 - Fund Establishment and Administration4.1. Establishment of the Fund. -- The Authority and Instrumentality have established a permanent and perpetual fund in the State Treasury known as the "West Virginia Water Pollution Control Revolving Fund." The Fund shall be kept separate and apart from all other funds or programs of the Authority and the Instrumentality.4.2. Sources of Moneys for the Fund. -- The Fund shall be comprised of moneys appropriated by the Legislature, moneys allocated to the state by the federal government for the purposes of establishing and maintaining the Fund, all receipts from loans made from the Fund to local entities, all income from the investment of moneys held in the Fund, and all other sums designated for deposits to the Fund from any source, public or private.4.3. Use of Moneys in the Fund. -- Moneys in the Fund shall be used solely to make loans to local entities to finance or refinance the costs of a project and to defray the costs incurred by the Authority and the Instrumentality in administering the Fund and the programs created by the Instrumentality, the Act, and this rule.4.4. Investment of Moneys in the Fund. -- The Authority and the Instrumentality shall invest the moneys in the Fund that are not needed for immediate disbursement or use in obligations or securities that are lawful investments for public funds of the state, including the Board of Treasury Investments.4.5. Disbursement of Moneys from the Fund. -- Moneys shall be disbursed from the Fund only upon a written authorization from either the Instrumentality or the Authority.4.6. Loans from the Fund. -- Moneys in the Fund shall be loaned to local entities for projects that are in compliance with provisions of the Clean Water Act and this rule. Each loan shall be in an amount that covers those costs of a project for which funds are sought by the applicant from the Instrumentality or the Authority and which are not provided by other available sources.4.7. Evidence of and Security for Loans. -- Each loan shall be evidenced by revenue bonds or notes or other debt instruments issued by the applicant and purchased by either the Instrumentality or the Authority, at par or at a discount to reflect the costs of the Authority and the Instrumentality incurred relating to financing, in whole or in part, the costs of a project, and shall be secured by a pledge of the fees, charges, and all other revenues of the project to be constructed, in whole or in part, with the proceeds of the loan and any other collateral as may be required by the Authority or the Instrumentality.4.8. Applications for Loans or for the Purchase of Bonds. -- A local entity, or a combination of local entities, that has the authority under applicable law to undertake a project and that has been approved by the Instrumentality may apply for a loan or for the purchase of its revenue bonds. An applicant desiring a loan shall make a separate application to the Instrumentality, on approved forms, for each project for which a loan is desired. Following approval by the Authority and the Instrumentality and when moneys are available for loan the Authority and the Instrumentality shall provide the local entity with a loan agreement or bond purchase agreement setting forth the specific terms of the loan or bond purchase. The loan agreement or bond purchase agreement, following execution by the local entity, constitutes a binding commitment for moneys from the Fund.4.9. Loan Agreements/Bond Purchase Agreements. -- Prior to providing a loan to an applicant or purchasing the bonds of a disadvantaged community, the Authority and Instrumentality shall execute and enter into a loan agreement or bond purchase agreement, as applicable, with the applicant or disadvantaged community which shall be binding under the laws of the state and which shall contain such provisions as may be required by the Authority and the Instrumentality under the Act and the Clean Water Act including: 4.9.a. The cost of the project, the amount of the loan or the bonds, and the terms of repayment of the loan or bonds and the security therefore, which may include - in addition to a pledge of the fees, charges, and other revenues from such project after a reasonable allowance for operation, maintenance, renewal, and replacement expenses - a deed of trust or other appropriate security instrument creating a lien on such project provided that the annual repayment of principal and payment of interest begins not later than one (1) year after project completion and that the final payment date shall not exceed twenty (20) years from said completion date; provided that in the case of a disadvantaged community that the final payment for the bonds shall not exceed the earlier of the useful life of the project or forty (40) years from said completion date;4.9.b. The specific purposes for which the proceeds of the loan shall be expended, the procedures as to the disbursement of loan proceeds including an estimated monthly draw schedule, and the duties and obligations imposed upon the applicant in regard to the acquisition or construction of the project;4.9.c. The agreement of the applicant to impose, collect, and, if required to repay the obligations of such applicant under the loan agreement/bond purchase agreement, increase service charges from persons utilizing the project. Service charges shall be pledged for the repayment of the loan or bonds together with all interest, fees, and charges thereon and all other financial obligations of the applicant under the loan agreement/bond purchase agreement;4.9.d. If notes or other interim obligations are being issued by the applicant, the agreement of the applicant to issue the revenue bonds and take such other actions as are required of the applicant under the loan agreement/bond purchase agreement;4.9.e. The agreement of the applicant to accept the Authority's remedies in the event of any default under the loan as specifically set forth in section 5 of the Act; and4.9.f. The agreement of the applicant to comply with all applicable federal and state statutes and regulations and all applicable local ordinances pertinent to the financing, acquisition, construction, operation, maintenance, and use of the project.4.10. Payment of Principal and Interest on Loans or Bonds. -- Payments of the principal or any interest on a loan or bond shall be made by the applicant in accordance with the provisions of the loan agreement/bond purchase agreement.4.11. Computation of Interest on Loans or Bonds. -- Each loan or bond shall bear interest from the date of the delivery of the bonds or notes of the applicant evidencing the loan to the applicant (or such other date as is determined by the Authority and the Instrumentality) at a rate or rates per annum, either fixed or variable, as determined by the Authority and the Instrumentality provided that said rate or rates shall be made at or below the market rate as defined in the Clean Water Act; and further provided that, pursuant to the provisions of the loan agreement/bond purchase agreement, the interest rate or rates shall reflect the costs of the Authority incurred in issuing its obligations, if any, and other costs relating to the making of the loan or purchasing the bonds.4.12. Fees and Charges. -- In addition to payments of principal and interest on a loan or bond, each applicant shall agree in the loan agreement/bond purchase agreement to pay fees and charges equal to the applicant's share of the administrative expenses of the Instrumentality relating to the loan program described in Section 4 of this rule including the fees and expenses of the trustee and paying agents for any bonds or notes to be issued by the Authority for contribution to the Fund and the fees and expenses of any corporate trustee for the Fund.4.13. Loans or Bond Purchase. Conditioned Upon Availability of Moneys in the Fund. - - The obligation of the Instrumentality or Authority to make any loan or purchase any bonds shall be conditioned upon the availability of moneys in the Fund in such amounts and on such terms and conditions as, in the judgement of the Instrumentality or Authority, will enable it to make the loans or purchase bonds.4.14. Disbursement of Loan Moneys. 4.14.a. On a monthly basis, there shall be disbursed to each recipient the amount certified as costs incurred for the project. Said certification shall be made in the approved form. The funds will be dispensed from the Fund upon presentation of an executed payment request form.4.14.b. Each recipient shall comply with all terms and conditions of the loan agreement or the bond purchase agreement, the resolution or ordinance authorizing the issuances of revenue bonds or notes or other debt instruments evidencing the loan.4.15. Loans for Other Projects allowed under Federal Law. -- The Instrumentality may from time to time create other loan programs for other projects allowed by federal law and make loans from the Fund to local entities for such projects. The Instrumentality shall set the terms and conditions for such loans and may enter into loan agreements, or direct the Authority to enter into loan agreements, for such loans. All payments on such loans shall be deposited to the Fund.