South Dakota Administrative Rules › Title 74 - Department of Environment And Natural Resources › Article 74:05 - Water development › Chapter 74:05:12 - Brownfield's revitalization and economic development program › Section 74:05:12:12 - Assistance agreements

Current through Register Vol. 51, page 10, July 15, 2024
If a brownfields revolving loan subfund assistance application is
	 approved for funding, the board shall execute an assistance agreement with the
	 recipient. The board shall establish the terms and conditions in the assistance
	 agreement. Assistance agreements for loans and grants may include the following
	 requirements of the recipient:
(1) To
  acquire all property rights necessary for the project including rights-of-way
  and interest in land needed for the construction, operation, and maintenance of
  the project; to furnish title insurance, a title opinion, or other documents
  showing the ownership of the land, mortgages, encumbrances, or other lien
  defects; and to obtain and record the releases, consents, or subordinations to
  the property rights for holders of outstanding liens or other instruments as
  necessary for the construction, operation, and maintenance of the
  project;
(2) To provide security
  for loans as required in §
									74:05:12:13;
(3) To provide for the receipt of revenues
  sufficient to meet the requirements of debt service, operation, and maintenance
  and to establish reserves in an amount sufficient to ensure that expenses and
  payments are paid on time for loan installments, emergency maintenance, and
  replacement of assets that have a useful life less than the repayment period of
  the loan;
(4) To acquire and
  maintain insurance coverage, including fidelity bonds;
(5) To establish and maintain books and
  records relating to the construction and operation of the project and its
  financial affairs;
(6) To provide
  the secretary access to all books and records relating to the project and
  access to the property of the system so that the secretary may ascertain
  whether the recipient is complying with the provisions of this chapter and with
  the funding agreement;
(7) To use
  funds that remain available after all costs of the project have been paid for
  needed extensions, enlargements, and improvements of the project with the
  written permission of the board;
(8) Not to sell, transfer, lease, or
  otherwise encumber the project, any portion of the project, or interest in the
  project to a public or private entity without the prior written consent of the
  board while the funding agreement is in effect;
(9) If the undertaking would obligate the
  source of funds pledged to repay the assistance agreement, to agree not to
  borrow money from any source, enter into any agreement, or incur other
  liabilities in connection with the project, exclusive of normal maintenance,
  without the prior written consent of the board;
(10) To agree that upon default in the
  payments of principal and accrued interest on the loan or in the performance of
  any covenant or condition, the board may, at its option, do one or more of the
  following:
(a) Declare immediately due and
  payable the entire principal amount then outstanding and the accrued interest
  and all costs associated with collection of the outstanding balance;
(b) For the account of the borrower incur and
  pay reasonable expenses for repair, maintenance, and operation of the project
  and other expenses necessary to cure the cause of default;
(c) Take possession of the project, repair,
  maintain, operate, sell, lease, or otherwise dispose of the project to another
  entity; and