Iowa Administrative Code › Agency 261 - Economic Development Authority › Part XII - Energy Division › Chapter 405 - Alternate Energy Revolving Loan Program › Rule 261-405.7 - Administration

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Notice
				of approval.
The authority will notify successful applicants in
				writing of an approved request for funding. Such a notification may include the
				terms or conditions under which approval is granted.
(2)
Contract.
After
				notifying the borrower of an award, the authority will offer a contract to the
				borrower. The contract shall be between the Iowa energy center and the
				borrower. An award shall not constitute a binding contract.
(3)
Transmittal.
The
				borrower must execute and return the contract to the authority within 45 days
				of the transmittal of the final contract from the authority. Failure to do so
				may be cause for the board to terminate the award.
(4)
Disbursement of funds.
Borrowers shall submit requests for disbursement of funds on the forms provided
				by the authority.
(5)
Amendment.
Any substantive change to a project shall require
				an amendment to the contract. A substantive change to a project includes but is
				not limited to a change in the loan amount, loan term, or scope of work. The
				borrower shall request the amendment in writing. No amendment shall be valid
				until approved by the board. The authority may execute nonsubstantive or
				corrective changes to the contract without board approval.
(6)
Closeout.
Upon contract
				expiration or project completion, the authority shall initiate project closeout
				procedures.
(7)
Record
				keeping and retention.
Borrowers shall retain all financial records,
				supporting documents and all other records pertinent to the loan for three
				years after the contract is closed or the loan is put in default and is not
				cured.
(8)
Reporting and
				compliance. A
start-up report is due to the authority within 30 days
				of the date that the project is placed in service. The report shall include but
				is not limited to documentation of installed costs of the project, one or more
				photographs, a sample invoice, and a description of any unexpected problems
				encountered during construction or installation of the project. The authority
				reserves the right to conduct a site visit of all awarded projects to ensure
				the projects were built as proposed and to provide verification of ongoing
				operation. The authority will monitor all loans to ensure that loan proceeds
				have been spent as identified in the contract and that all other sources of
				financing have been committed to the project. Borrowers shall be required to
				notify the authority of any change in ownership. Any loan made pursuant to this
				program shall become due for payment upon sale of the project for which the
				loan was made.
(9)
Default.
a. At any time
				during the construction of a project or the repayment of the loan, the
				authority may find that a borrower is in default under the terms of the loan
				contract. The authority will take prompt, appropriate, and aggressive debt
				collection action to recover any funds misspent by borrowers.
b. If the authority determines that a
				borrower is in default, the authority may seek recovery of the loan plus
				interest or other penalties as authorized pursuant to Iowa Code section
				47646.,
				negotiate alternative payment schedules, suspend or discontinue collection
				efforts and take other action as the authority deems necessary.
c. The authority shall attempt to collect the
				amount owed. Any negotiated settlement, write-off, or discontinuance of
				collection efforts is subject to final review by and approval of the
				board.
d. If the authority refers a
				defaulted contract to outside counsel for debt collection, then the terms of
				the contract between the authority and the outside counsel regarding the scope
				of counsel's authorization to accept settlements shall apply.