South Dakota Administrative Rules › Title 74 - Department of Environment And Natural Resources › Article 74:05 - Water development › Chapter 74:05:11 - Drinking water state revolving fund program › Section 74:05:11:20 - Assistance agreements

Current through Register Vol. 51, page 10, July 15, 2024
If an application is approved for funding, the board shall execute an
	 assistance agreement with the sponsoring entity. The board shall establish the
	 terms and conditions included in the assistance agreement. Assistance
	 agreements 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 facility; to furnish title
  insurance, a title opinion, or other documents showing the ownership of the
  land, mortgages, encumbrances, other liens, or title 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 facility;
(2) To provide security as required in §
									74:05:11:15;
(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 assure that expenses and
  payments will be 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 facility and its
  financial affairs;
(6) To provide
  the secretary access to all books and records relating to the facility and
  access to the property of the system so that the secretary may ascertain
  whether the sponsoring entity is complying with the provisions of this chapter
  and with the assistance agreement;
(7) To use funds that remain available after
  all costs to the facility have been paid for needed extensions, enlargements,
  and improvements of the facility with the written permission of the
  board;
(8) Not to sell, transfer,
  lease, or otherwise encumber the facility, any portion of the facility, or
  interest in the facility 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 an agreement, or incur other
  liabilities in connection with the facility, 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
  facility and other expenses necessary to cure the cause of default;
  or
(c) Take possession of the
  facility, repair, maintain, operate, sell, lease, or otherwise dispose of the
  facility to another entity; and