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 36.23.117 - FEES

Current through Register Vol. 13, July 5, 2024
(1) The following fees and charges are
				established and imposed for participation in the state revolving fund program.
(a) If an environmental impact statement is
				required pursuant to the Montana Environmental Policy Act and the department or
				the department of environmental quality rules, the applicant shall bear the
				cost of the environmental impact statement.
(b) An administrative fee up to 1% of the
				amount of the maximum authorized principal amount of the loan as reflected in
				the bond resolution or loan agreement must be charged each borrower, unless
				excepted from this requirement by the department.
(i) The department shall retain the
				administrative fee from the proceeds of the loan at the time of closing and
				transfer the fee to the state revolving fund administrative account as provided
				in the indenture of trust.
(ii) The
				department and department of environmental quality may determine, establish and
				revise from time to time, the precise amount of the administrative fee to be
				charged, based on the projected costs of administering the program and other
				revenues available to pay such costs.
(c) Each borrower shall be charged an
				administrative expense surcharge on its loan equal to.75% per annum on the
				outstanding principal amount of the loan, as such percentage may be adjusted
				pursuant to this subsection, payable on the same dates that payment of
				principal and interest on the loan are due.
(i) The department and department of
				environmental quality may determine and establish from time to time the precise
				amount of the administrative expense surcharge to be charged, based on the
				projected costs of administering the program and other revenues available to
				pay such costs.
(ii) The
				administrative expense surcharge must be deposited in the special
				administrative costs account as provided in the indenture of trust.
(d) Each borrower shall be charged
				an origination fee up to 1% of the amount of the commitment loan that must be
				charged to each borrower, unless excepted from this requirement by the
				department. Each borrower's origination fee shall be paid at closing by the
				retention by the department of such amount from the proceeds of the loans or
				from the funds of the borrower.
(i) The
				department may determine, establish and revise from time to time the precise
				amount of the origination fee to be charged, based on the projected costs of
				administering the program and other revenues available to pay such
				costs.
(e) All
				borrowers, unless meeting the requirements of a disadvantaged municipality and
				awarded a subsidy by the department, shall pay a loan loss reserve surcharge
				equal to 1% per annum on the outstanding principal amount of the loan, as such
				percentage may be adjusted as set forth in this subsection, payable on the same
				dates that payments of principal and interest are paid.
(i) The loan loss surcharge must be deposited
				in the loan loss reserve account established in the indenture of trust until
				the loan loss reserve requirement as defined in the indenture is satisfied at
				which point it can be deposited in the state allocation account or to such
				other fund or account in the state treasury authorized by state law as a
				department of environmental quality or department representative shall
				designate, or segregated in a separate subaccount in the loan loss reserve
				account and applied to any costs of activities under the program authorized by
				state law as a department of environmental quality or department representative
				shall designate.
(ii) The
				department and department of environmental quality may determine and establish
				from time to time the precise amount of the loan loss reserve surcharge to be
				charged, based on the loan loss reserve requirement and the amounts in the
				match account.
(iii) The borrower
				shall repay the following items:
(A) the loan
				at an interest rate determined in accordance with ARM
				36.23.120;
(B) plus the loan loss reserve surcharge plus
				the administrative expense surcharge.
(iv) The borrower shall propose rates and
				charges for all water services necessary to repay the above items.