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 36.24.109 - 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
				adopted and executed bond resolution from a municipality or loan agreement from
				a private person in a form acceptable to the department;
(b) a duly executed bond or note in a
				principal amount equal to the amount of the loan in a form acceptable to the
				department;
(c) a certificate of an
				official of the borrower that there is no litigation threatened or pending
				challenging the borrower's authority to undertake the project, to incur the
				loan, issue the bonds or enter into the loan agreement, collect the system
				charges in a form acceptable to the department or pledge its revenues or assets
				to the repayment of the loan or bonds;
(d) 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, and, with respect to a
				loan to a private person, such legal opinions as the department deems necessary
				or appropriate, including that the note and loan agreement are the valid and
				bonding 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;
(e) such other closing
				certificates or documents that the department or bond counsel may require to
				satisfy requirements of these rules;
(f) 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 March 7, 1985;
(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;
(g) any certificate of insurance as
				evidencing insurance coverage as required by these rules and the bond
				resolution;
(h) 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;
(i) all permits or licenses that may be
				required by the state, any of its agencies and political subdivisions with
				respect to the project;
(j)
				executed copy of the construction contract accompanied by the appropriate
				performance and payment bonds;
(k)
				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;
(l) a
				written order signed by a department of environmental quality representative
				authorizing a disbursement;
(m) a
				copy of the borrower's request for such disbursement on the form prescribed by
				the department; and
(n) payment of
				the administrative fee and origination fee, unless excepted from these
				requirements by the department.