West Virginia Code of State Rules › Agency 60 - Environmental Protection - Secretary's Office › Title 60 - LEGISLATIVE RULE DEPARTMENT OF ENVIRONMENTAL PROTECTION DIVISION OF WATER AND WASTE MANAGEMENT › Series 60-12 - Administration of Drinking Water Treatment Revolving Fund and Safe Drinking Water Set-Asides › Section 60-12-7 - Financial Administration

Current through Register Vol. XLI, No. 28, July 12, 2024
7.1.
				Evidence and Security for Loans. Each loan shall be evidenced by revenue bonds
				or notes or other debt instruments issued by the local entity and purchased by
				the Water Development Authority, at par or at a discount to reflect the costs
				of the Water Development Authority and the Instrumentality incurred to the
				financing, in whole or in part, of the costs of a project. Each loan shall be
				secured by a pledge of the fees, charges, and all other revenues of the project
				to be constructed, in whole or in part, with the proceeds of the loan and any
				other collateral as may be required by the Water Development Authority. The
				Water Development Authority may require a water customer survey or user
				agreements to ensure that the proposed new customers will connect to the
				system.
7.2. Applications for
				Loans. A local entity that has the authority under State law to undertake a
				project and has been approved as an eligible recipient by the Instrumentality
				may apply for a loan. An eligible recipient desiring a loan shall make a
				separate application to the Water Development Authority, on the forms
				prescribed by the director of the Water Development Authority, for each project
				for which a loan is desired. Following approval by the Water Development
				Authority and the Instrumentality and when moneys are available for loan the
				Instrumentality shall provide the local entity with a binding commitment letter
				setting forth the terms of the loan.
7.3. Determination of Eligible Recipients.
				Public water systems projected to be able to qualify for DWTRF financial
				assistance shall be identified in the annual Intended Use Plan as described in
				Section 3 of this rule. Only those projects included in the State's Intended
				Use Plan for the current fiscal year shall be considered by the Water
				Development Authority and the Instrumentality for financial assistance from the
				DWTRF.
7.4. Loan Agreements. Prior
				to providing a loan to an eligible recipient, the Water Development Authority
				shall execute and enter into a loan agreement with the applicant which shall be
				binding under the laws of the State and which shall contain such provisions as
				may be required by the Water Development Authority and the Instrumentality
				under the Safe Drinking Water Act including:
7.4.1. The cost of the project, the amount of
				the loan and the security therefor, which may include in addition to a pledge
				of fees, charges and other revenues from the project after a reasonable
				allowance for operation, maintenance, renewal and replacement expenses, and a
				reasonable reserve fund;
7.4.2. A
				deed of trust or other appropriate security instrument creating a lien on such
				project: Provided, That the annual repayment of principal and payment of
				interest begins not later than one year after the project completion and that
				the final payment shall not exceed 40 years (or as approved under the Safe
				Drinking Water Act) from said completion date except as provided in Section 8
				of this rule;
7.4.3. The specific
				purposes for which the proceeds of the loan shall be expended, the procedures
				as to the disbursement of the loan proceeds including an estimated monthly draw
				schedule, and the duties and obligations imposed upon the applicant in regard
				to the acquisition or construction of the project;
7.4.4. If notes or other interim obligations
				are being issued by the applicant, the agreement of the applicant to issue the
				revenue bonds and take such other actions as are required of the applicant
				under the loan agreement;
7.4.5.
				The agreement of the applicant to accept the Water Development Authority's
				remedies in the event of any default under the loan; and
7.4.6. The agreement of the applicant to
				comply with all applicable federal and State statutes, rules and regulations,
				the applicable requirements of all federal cross cutting authorities, and all
				applicable local ordinances pertinent to the financing, acquisition,
				construction, operation, maintenance, and use of the project.