Illinois Administrative Code › Title 35 - ENVIRONMENTAL PROTECTION › Part 365 - PROCEDURES FOR ISSUING LOANS FROM THE WATER POLLUTION CONTROL LOAN PROGRAM › Subpart C - LOAN APPLICATION PROCESS › Section 365.350 - Loan Application and Other Documentation

Current through Register Vol. 48, No. 28, July 12, 2024
Before the Agency will issue a loan agreement, the loan
				  applicant must submit the following documents:
a) An application, on forms prescribed by the
				Agency, which must include the following documents:
1) Loan Program Certifications;
2) Certification Regarding Debarment,
				Suspension, and Other Responsibility Matters;
3) Certification of Intent Regarding National
				Flood Insurance;
4) Certification
				Regarding Project Site, Rights-of-Way, Easements, and Permits;
5) Authorization of a Representative to Sign
				Loan Documents;
6) An Engineering
				Service Procurement Report that certifies whether the contracts for program
				management, construction management, feasibility studies, preliminary
				engineering, design, engineering, surveying, mapping, or architectural related
				services were negotiated in the same manner as a contract for architectural and
				engineering services under 40 U.S.C. 1101 et seq.;
7) For a treatment works proposed for repair,
				replacement, or expansion, and eligible for assistance under Section
				365.130(a), the
				public loan recipient shall certify in writing that the public loan recipient
				will develop and implement a fiscal sustainability plan that includes:
A) an inventory of critical assets that are a
				part of the treatment works;
B) an
				evaluation of the condition and performance of inventoried assets or asset
				groupings;
C) a certification that
				the recipient has evaluated and will be implementing water and energy
				conservation efforts as part of the plan; and
D) a plan for maintaining, repairing, and, as
				necessary, replacing the treatment works and a plan for funding the
				activities;
8) Any other
				executed legal agreements, including, but not limited to, intergovernmental
				agreements necessary for project implementation;
9) Proof of authority to incur debt for:
A) Public loan applicants: a certified copy
				of the enacted ordinance authorizing the bonds, notes or other evidence of
				indebtedness to be delivered to the Agency, and proof the ordinance was adopted
				in accordance with State law, including publication and notice requirements
				when applicable; or
B) Loan
				applicants that are not public loan applicants: documents such as, but not
				limited to, a copy of board resolutions to incur the debt, Articles of
				Incorporation, By-laws, Partnership Agreements, or a legal opinion stating that
				the loan applicant has the authority to incur debt;
10) Documentation to support the loan
				applicant's ability to repay all principal and interest of the loan:
A) A financial capability demonstration shall
				be submitted to the Agency for approval and shall contain:
i) detailed project costs;
ii) 5-year projected estimates of
				revenues;
iii) 5-year projected
				estimates of operation and maintenance costs;
iv) 5-year projected estimates of local
				capital costs; and
v) the most
				recent completed annual audited financial statements of the loan
				applicant;
B) A user
				charge system, when a user charge system is the dedicated source of revenue,
				shall be submitted to the Agency and shall:
i)
				be enacted and enforceable before the first loan disbursement (when applicable,
				approval of the rate increase by the Illinois Commerce Commission will be
				required);
ii) generate sufficient
				revenue to offset the cost for operation, maintenance and replacement required
				to be provided by the loan recipient for all projects authorized under this
				Part;
iii) be incorporated in one
				or more municipal legislative enactments or other appropriate authorizations.
				If the project is for a regional treatment works accepting wastewaters from
				treatment works owned by others, then the subscribers receiving wastewater
				treatment services from the loan recipient shall have adopted user charge
				systems. The user charge systems shall also be incorporated in the appropriate
				municipal legislative enactments, intergovernmental or service agreements or
				other appropriate authorizations; and
iv) provide the average monthly cost of
				service for a residential customer based upon the average monthly water usage
				for a residential customer, or the appropriate average monthly residential cost
				of service based upon the methodology established within the loan applicant's
				system of user charges. If the loan applicant has substantial industrial and/or
				commercial customers, the loan applicant must provide similar monthly user
				charge information for the customers within those rate classes. In addition,
				provide the number of billed residential and industrial or commercial
				accounts;
C) A dedicated
				source of revenue adequate to make loan repayments for the term of the loan. If
				the dedicated source of revenue is pledged in a subordinate position, the loan
				applicant must establish a reserve account that provides the Agency with the
				equivalent coverage and reserves as the senior lien holders. At a minimum, the
				reserve account shall be equal to the annual principal and interest payment
				funded within 2 years after the loan award;
D) For nonpublic loan applicants, appropriate
				legal documents will be provided to enable the Agency to perfect its security
				interest in the revenues of the loan applicant and other personal properties
				offered as security by filing the necessary information under the Uniform
				Commercial Code [810 ILCS 5 ];
E) For nonpublic loan applicants, approval
				from the Illinois Commerce Commission to incur debt, if applicable;
F) Upon request by the Agency, any other
				documentation necessary to demonstrate the loan applicant's ability to repay
				all principal and interest of the loan including, but not limited to, a credit
				report;
11) A legal
				opinion from the loan applicant's legal counsel with respect to the validity
				and enforceability of the loan applicant's obligations and the absence of
				conflicts with other agreements, bonds or ordinances;
12) A Tax Exemption Certificate and
				Agreement;
13) A project completion
				schedule;
14) An active Data
				Universal Number System Identification (DUNS No.) registered in the federal
				System for Award Management Systems; and
15) Certification that the loan applicant
				will comply with the American iron and steel requirements as required by
				USEPA.
16) Certification that the
				loan applicant will comply with the requirements of the Build America Buy
				America Act (BABA Act) at Public Law 117-58,
				Sections
				70901 through 70952 (41 U.S.C.
				8301 note), as
				applicable.