Iowa Administrative Code › Agency 261 - Economic Development Authority › Part XII - Energy Division › Chapter 406 - Energy Infrastructure Revolving Loan Program › Rule 261-406.8 - Administration

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Notice
				of approval or denial.
The authority will notify applicants in writing
				of the board's approval or denial of an application. If the application is
				approved, the notice will include any conditions and terms of the
				loan.
(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 90 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 the scope of work for a project or request to renegotiate
				loan terms shall require an amendment to the contract. The board may consider
				requests for loan forgiveness if the borrower demonstrates forgiveness is
				necessary to avoid a negative material impact on the project or potential
				default. The borrower shall request amendments in writing. No amendment shall
				be valid until approved by the board. The authority may execute nonsubstantive
				or ministerial 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.
The borrower shall complete all reports required by the
				contract executed pursuant to subrule 406.8(2). The authority reserves the
				right to conduct site visits 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.
(9)
Default.
a. At any time
				during the 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, 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.