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 36.23.119 - REQUIREMENTS FOR DISBURSING OF LOAN

Current through Register Vol. 13, July 5, 2024
(1)
				Loans will be disbursed by warrants drawn by the department of administration
				or wire transfers authorized by the state treasurer or the department in
				accordance with the provisions of this rule, and the indenture of trust.No
				disbursement of any loan shall be made unless the department has received from
				the borrower the following:
(a) a duly
				approved and executed bond resolution in a form acceptable to the
				department;
(b) a duly executed
				bond or promissory note in a principal amount equal to the amount of the loan
				in a form acceptable to the department;
(c) a certificate of the borrower that there
				is no litigation threatened or pending challenging the borrower's authority to
				undertake the project, to incur the loan, or issue the bonds, collect the
				system charges in a form acceptable to the department or to pledge its revenues
				or assets to the repayment of the loan or bonds;
(d) in the case of a borrower that is a
				municipality, an opinion of bond counsel acceptable to the department that the
				bond is a valid and binding obligation of the municipality payable in
				accordance with its terms and that the interest in a form acceptable to the
				department thereon is exempt from state and federal income taxation in a form
				acceptable to the department;
(e)
				in the case of a borrower who is a private person, an opinion of bond counsel
				to the department that the note and loan agreement are valid and binding
				obligations of the private person payable in accordance with their terms and
				that the making of the loan will not cause any bonds issued as tax-exempt bonds
				by the state to finance the program to become taxable;
(f) such other closing certificates or
				documents that the department or bond counsel may require to satisfy
				requirements of these rules;
(g) if
				all or part of a loan is being made to refinance a project or reimburse the
				borrower for the costs of a project paid prior to the closing, evidence
				satisfactory to the department and the bond counsel:
(i) that the acquisition or construction of
				the project was begun no earlier than July 1, 1993;
(ii) of the borrower's title to the
				project;
(iii) of the costs of such
				project and that such costs have been paid by the borrower; and
(iv) if such costs were paid in a previous
				fiscal year of the borrower, that the borrower intended at the time it incurred
				such costs to finance them with tax-exempt debt or a loan under a state
				revolving fund program such as the program.
(h) any certificate of insurance as
				evidencing insurance coverage as required by these rules and the bond
				resolution;
(i) a certified copy of
				the rate and charge ordinance, if applicable, and if subject to approval by
				another entity, evidence that such approval has been obtained;
(j) all permits or licenses that may be
				required by the state, any of its agencies and political subdivisions with
				respect to the project;
(k)
				executed copy of the construction contract accompanied by the appropriate
				performance and payment bonds;
(l)
				any additional documents required by the department or department of
				environmental quality as a condition to the approval of the loan described in
				the bond purchase agreement;
(m) a
				written order signed by a department of environmental quality representative
				authorizing a disbursement;
(n) a
				copy of the municipality's request for such disbursement on the form prescribed
				by the department; and
(o) payment
				of the administrative fee and the origination fee, unless excepted from these
				requirements by the department.