New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 21 - COMMUNITY REVITALIZATION AND DEVELOPMENT › Part 3 - LENDING PROCEDURES OF THE MAIN STREET REVOLVING LOAN FUND › Section 12.21.3.8 - MSRL FUND CONTRIBUTIONS TO THE LOAN POOL AND THE LOAN POOL

Current through Register Vol. 35, No. 13, July 16, 2024
A. MSRL funds are
				contained in the main street revolving loan fund. Funding of restoration,
				rehabilitation, repair and preservation of an eligible property is accomplished
				by the division contributing an amount of MSRL funds into the loan
				pool.
B. For each approved project,
				the division and the lending institution shall establish a schedule for
				disbursement of loan funds to the borrower. The schedule shall be included in
				the loan participation agreement as provided for in Subsection E of 12.21.3.13
				NMAC of these regulations, and indicate the stages of work progress and the
				anticipated dates of disbursements and amount of MSRL contributions to be
				directed toward each stage of work progress. The period during which all
				disbursements of the MSRL contributions for a project shall not exceed a period
				of twelve months from the date the first disbursement of loan funds was made to
				the borrower or a period otherwise agreed to by the parties in the loan
				participation agreement. In either event, such period shall not exceed two
				years from the date of project loan approval by the division. The disbursement
				schedule for the MSRL funds from the loan pool shall be based upon the planned
				restoration, rehabilitation, repair and authorized use of MSRL funds.
C. Prior to the date of a scheduled
				disbursement of MSRL Funds, the lending institution shall notify the division
				that a deposit of a specified amount of MSRL funds into the loan pool is
				necessary. The division shall make an appropriate request to the New Mexico
				state treasurer's office to effect the deposit of the specified amount of MSRL
				funds into the loan pool for disbursement to the borrower by the lending
				institution. An MSRL contribution that is not disbursed to the borrower as
				provided in Subsection B of 12.21.3.8 NMAC herein shall be returned by the
				lending institution to the division.
D. The division shall only deposit MSRL funds
				into the loan pool to pay the costs of completed rehabilitation, restoration,
				or repair work, or for reimbursement of payment of approved materials delivered
				to the project site, including eligible costs approved by the
				division.
E. In addition to MSRL
				funds, the funds in the loan pool may include other funds from other sources
				that are available for loans or loan subsidies made pursuant to the Main Street
				Revolving Loan Act.
F. MSRL funds
				contributed into and disbursed from the loan pool shall be used in accordance
				with these regulations.
G. Non-MSRL
				contributions in the loan pool may be available for costs of land acquisition,
				purchase, or other costs for which MSRL funds cannot be used.
H. Use of non-MSRL contributions in the loan
				pool shall be governed by any applicable restrictions, requirements, terms or
				conditions of the lending institution or other funding entity.