Administrative Rules of Montana › Department 36 - NATURAL RESOURCES AND CONSERVATION › Chapter 36.23 - DRINKING WATER STATE REVOLVING FUND ACT › Subchapter 36.23.1 - Financial Assistance › Rule 36.23.120 - TERMS OF LOAN AND BONDS

Current through Register Vol. 13, July 5, 2024
(1) The source of
				funding of the loans under this program initially will be 80% from the EPA and
				20% from the proceeds of the state's bonds, but may be adjusted from time to
				time if required or permitted by the federal act, the act, and applicable
				program documents. The interest rate on the loan will be determined by the
				department at the time the loan is made. The rate on a loan must be such that
				the interest payments thereon and on other loans funded from the proceeds of
				the state's bonds will be sufficient, if paid timely and in full, with other
				available funds in the state revolving fund including investment income, from
				which the loan was funded to pay the principal of and interest on the state's
				bonds issued by the state.
(2) The
				rate of interest on loans from the program will vary in accordance with the
				rate on the state's bonds from which the loan is made. The rate of interest on
				all loans financed from the proceeds of a specific issue of bonds will be the
				same. The net interest cost on any loan may not exceed the net interest cost to
				the state on the state bonds from which such loan was made.
(3) Unless the department otherwise agrees,
				each loan shall be payable, including principal and interest thereon and the
				administrative expense surcharge and loan loss reserve surcharge, if any, over
				a term approved by the department, not to exceed 20 years after the completion
				date of a project, or such longer period as may then be permissible under the
				federal act or the act, provided that the department may allow a disadvantaged
				municipality to repay its loan over a term not to exceed 30 years, provided
				that the term of the loan does not exceed the expected design life of the
				project being financed. In no case shall the term of a loan exceed the useful
				life of the project being financed.
(a)
				Interest, administrative expense surcharge and loan loss reserve surcharge, if
				any, on, and amortization of principal of, each disbursement of each loan that
				is not a construction loan shall begin no later than 15 days prior to the next
				interest payment date (unless the loan is closed within 15 days of the next
				interest payment date, in which case interest, administrative expense surcharge
				and loan loss reserve surcharge, if any, on, and amortization of principal of,
				such a loan shall begin no later than 45 days prior to the next following
				interest payment date).
(b) For
				construction loans, the department may permit principal amortization to be
				delayed until as late as one year after completion of the project, provided
				that interest, administrative expense surcharge and loan loss reserve
				surcharge, if any, on each disbursement of a construction loan shall begin no
				later than 15 days prior to the next interest payment date (unless the loan is
				closed within 15 days of the next interest payment date, in which case
				interest, administrative expense surcharge and loan loss reserve surcharge, if
				any on a construction loan shall begin no later than 45 days prior to the next
				following interest payment date) unless the state has provided for payment of
				interest on its bonds by capitalizing interest.
(c) In any event, the payment of interest
				must commence no later than the payment of principal.