Administrative Rules of Montana › Department 36 - NATURAL RESOURCES AND CONSERVATION › Chapter 36.24 - WATER POLLUTION CONTROL STATE REVOLVING FUND ACT › Subchapter 36.24.1 - Financial Assistance › Rule 36.24.107 - FEES

Current through Register Vol. 13, July 5, 2024
(1) The following fees and charges are
				established and imposed for participation in the 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. 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. The department and department of environmental
				quality may determine and establish 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. 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. The administrative expense surcharge must be deposited in the
				special administrative costs account as provided in the indenture of
				trust.
(d) 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 proceeds of the borrower,
				unless excepted from this requirement by the department.
(e) All borrowers unless excepted from the
				requirement 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 on the loan are due. The loan
				loss reserve 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 bond resolution or loan agreement is satisfied. At this 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. 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.
(i) The
				borrower shall repay the loan at an interest rate determined in accordance with
				ARM 36.24.110, plus the loan loss
				reserve surcharge plus the administrative expense surcharge. The borrower shall
				propose rates and charges for all wastewater services necessary to repay the
				above items. The department and the department of environmental quality shall
				rank all applications. Based on a consideration of socioeconomic factors and
				measures of financial condition, and in accordance with the provisions of the
				intended use plan, the department may agree not to impose the loan loss reserve
				surcharge on the borrower. Any excess fees on revenues generated within or by
				the program shall be used exclusively for purposes authorized by the federal
				act.