South Dakota Administrative Rules › Title 74 - Department of Environment And Natural Resources › Article 74:05 - Water development › Chapter 74:05:10 - Solid waste management program › Section 74:05:10:15 - Funding agreements

Current through Register Vol. 51, page 10, July 15, 2024
If an application is approved for funding, the board shall execute a
	 funding agreement with the applicant. Funding agreements may include the
	 following requirements of the sponsoring entity:
(1) To acquire all property rights necessary
  for the project including water rights, 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 as required in §
									74:05:10:29;
(3) To provide for the receipt of revenues 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 and performance bonds, as
  may be required;
(5) To establish
  and maintain books and records relating to the construction and operation of
  the project and its financial affairs, including a final report;
(6) To submit an annual financial audit or a
  final financial audit, or both, performed by a qualified independent accountant
  licensed in South Dakota;
(7) To
  provide the board and the secretary access to all books and records relating to
  the project and access to the property of the project so that the board may
  ascertain whether the sponsoring entity is complying with the provisions of
  this chapter and with the funding agreement;
(8) Not to sell, transfer, lease, or
  otherwise encumber the project, any portion of the project, or interest in the
  project without the prior written consent of the board while the funding
  agreement or its conditions are in effect;
(9) To secure written approval from the board
  or its designated agent for changes in project scope before or during
  construction according to conditions and specifications set forth in the
  funding agreement;
(10) In the case
  of a loan, to agree not to enter into an agreement or incur other liabilities
  in connection with the project, exclusive of normal maintenance, without the
  prior written consent of the board if the undertaking would obligate the source
  of funds pledged to repay the loan; and
(11) In the case of a loan, 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 at its option may 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; or
(c) Take
  possession of the project and repair, maintain, or operate the project or sell,
  lease, or otherwise dispose of the project to another entity.