Idaho Administrative Code › Title IDAPA 58 - Environmental Quality, Department of › Rule 58.01.12 - RULES FOR ADMINISTRATION OF WASTEWATER AND DRINKING WATER LOAN FUNDS › Section 58.01.12.050 - LOAN OFFER AND ACCEPTANCE

Current through August 31, 2023
01.
Loan
			 Offer
. Loan offers will be delivered to successful applicants by
			 representatives of the Department or by registered mail. (3-24-22)
02.
Acceptance of Loan Offer
.
			 Applicants have sixty (60) days in which to officially accept the loan offer on
			 prescribed forms furnished by the Department. The sixty (60) day acceptance
			 period commences from the date indicated on the loan offer notice. If the
			 applicant does not accept the loan offer within the sixty (60) day period the
			 loan funds may be offered to the next project of priority. (3-24-22)
03.
Acceptance Executed as a Contract
			 Agreement
. Upon signature by the Director and upon signature by the
			 authorized representative of the eligible applicant, the loan offer shall
			 become a contract. Upon accepting a loan offer, an eligible applicant becomes a
			 loan recipient. The disbursement of funds pursuant to a loan contract is
			 subject to a finding by the Director that the loan recipient has complied with
			 all loan contract conditions and has prudently managed the project. The
			 Director may, as a condition of disbursement, require that a loan recipient
			 vigorously pursue any claims it has against third parties who will be paid in
			 whole or in part, directly or indirectly, with loan funds. No third party shall
			 acquire any rights against the state or its employees from a loan contract.
			 (3-24-22)
04.
Estimate of
			 Reasonable Cost
. All loan contracts will include the eligible costs of
			 the project. Some eligible costs may be estimated and disbursements may be
			 increased or decreased as provided in Section
			 060. (3-24-22)
05.
Terms of Loan Offers
. The
			 loan offer shall contain such terms as are prescribed by the Department
			 including, but not limited to: (3-24-22)
a.
			 Terms consistent with these rules, the project step to be funded under the loan
			 offer, and Title 39, Chapter 36, Idaho Code; (3-24-22)
b. Special clauses as determined necessary by
			 the Department for the successful investigation, design, construction and
			 management of the project; (3-24-22)
c. Terms consistent with applicable state and
			 federal laws pertaining to planning documents, design, and construction,
			 including the Public Works Contractors License Act and the Public Contracts
			 Bond Act, Chapter 19, Title 54, Idaho Code, and the federal Clean Water Act and
			 Safe Drinking Water Act requirements for projects funded with loan moneys of
			 federal origin; (3-24-22)
d.
			 Requirement for the prime engineering firm(s) and their principals retained for
			 engineering services to carry professional liability insurance to protect the
			 public from the engineer's negligent acts and errors and omissions of a
			 professional nature. The total aggregate of the engineer's professional
			 liability insurance shall be one hundred thousand dollars ($100,000) or twice
			 the amount of the engineer's fee, whichever is greater. Professional liability
			 insurance must cover all such services rendered for all project phases, whether
			 or not such services or phases are state funded, until the certification of
			 project performance is accepted by the Department; (3-24-22)
e. The project shall be bid, contracted and
			 constructed according to the current edition of Idaho Standards for Public
			 Works Construction unless the loan recipient has approved and adopted
			 acceptable public works construction standards approved by the Department;
			 (3-24-22)
f. The loan interest rate
			 for loans made during the state fiscal year beginning July 1 will be
			 established by the Director. The interest rate will be a fixed rate in effect
			 for the life of the loan. The rate may equal but shall not exceed the current
			 market rate; (3-24-22)
g. The loan
			 fee pursuant to Section
			 032; (3-24-22)
h. All loans must be fully amortized within a
			 period not to exceed thirty (30) years after project completion. The loan
			 contract will be appended with a schedule of loan repayments stating the due
			 dates and the amount due upon project completion. The loan recipient may elect
			 for either a schedule of semi-annual or annual repayments at the time the loan
			 is finalized; and (3-24-22)
i.
			 Repayment default will occur when a scheduled loan repayment is thirty (30)
			 days past due. If default occurs, the Department may invoke appropriate loan
			 contract provisions and/or bond covenants. (3-24-22)