Illinois Administrative Code › Title 35 - ENVIRONMENTAL PROTECTION › Part 662 - PROCEDURES FOR ISSUING LOANS FROM THE PUBLIC WATER SUPPLY LOAN PROGRAM › Subpart C - LOAN APPLICATION PROCESS › Section 662.350 - 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) Certification
				that the loan applicant will comply with the American iron and steel
				requirements as required by Sec. 1452(a)(4) of the Federal Safe Drinking Water
				Act (42 U.S.C.
				300j-12(a)(4));
7) 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;
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 water
				supplies owned by a local government unit: documents such as, but not limited
				to, 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) Privately owned community water supplies:
				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;
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, the loan applicant must
				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 a privately owned community water
				supply, 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 a privately owned
				community water supply, approval from the Illinois Commerce Commission to incur
				debt, if applicable; and
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;
				and
14) an active Data Universal
				Number System Identification (DUNS No.) registered in the federal System for
				Award Management Systems.