West Virginia Code of State Rules › Agency 47 - Water Resources, Division Of Water And Waste Management › Title 47 - LEGISLATIVE RULE DEPARTMENT OF ENVIRONMENTAL PROTECTION DIVISION OF WATER RESOURCES › Series 47-31 - State Water Pollution Control Revolving Fund › Section 47-31-4 - Fund Establishment and Administration

Current through Register Vol. XLI, No. 28, July 12, 2024
4.1. Establishment of the Fund. -- The
				Authority and Instrumentality have established a permanent and perpetual fund
				in the State Treasury known as the "West Virginia Water Pollution Control
				Revolving Fund." The Fund shall be kept separate and apart from all other funds
				or programs of the Authority and the Instrumentality.
4.2. Sources of Moneys for the Fund. -- The
				Fund shall be comprised of moneys appropriated by the Legislature, moneys
				allocated to the state by the federal government for the purposes of
				establishing and maintaining the Fund, all receipts from loans made from the
				Fund to local entities, all income from the investment of moneys held in the
				Fund, and all other sums designated for deposits to the Fund from any source,
				public or private.
4.3. Use of
				Moneys in the Fund. -- Moneys in the Fund shall be used solely to make loans to
				local entities to finance or refinance the costs of a project and to defray the
				costs incurred by the Authority and the Instrumentality in administering the
				Fund and the programs created by the Instrumentality, the Act, and this
				rule.
4.4. Investment of Moneys in
				the Fund. -- The Authority and the Instrumentality shall invest the moneys in
				the Fund that are not needed for immediate disbursement or use in obligations
				or securities that are lawful investments for public funds of the state,
				including the Board of Treasury Investments.
4.5. Disbursement of Moneys from the Fund. --
				Moneys shall be disbursed from the Fund only upon a written authorization from
				either the Instrumentality or the Authority.
4.6. Loans from the Fund. -- Moneys in the
				Fund shall be loaned to local entities for projects that are in compliance with
				provisions of the Clean Water Act and this rule. Each loan shall be in an
				amount that covers those costs of a project for which funds are sought by the
				applicant from the Instrumentality or the Authority and which are not provided
				by other available sources.
4.7.
				Evidence of and Security for Loans. -- Each loan shall be evidenced by revenue
				bonds or notes or other debt instruments issued by the applicant and purchased
				by either the Instrumentality or the Authority, at par or at a discount to
				reflect the costs of the Authority and the Instrumentality incurred relating to
				financing, in whole or in part, the costs of a project, and 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 Authority or the
				Instrumentality.
4.8. Applications
				for Loans or for the Purchase of Bonds. -- A local entity, or a combination of
				local entities, that has the authority under applicable law to undertake a
				project and that has been approved by the Instrumentality may apply for a loan
				or for the purchase of its revenue bonds. An applicant desiring a loan shall
				make a separate application to the Instrumentality, on approved forms, for each
				project for which a loan is desired. Following approval by the Authority and
				the Instrumentality and when moneys are available for loan the Authority and
				the Instrumentality shall provide the local entity with a loan agreement or
				bond purchase agreement setting forth the specific terms of the loan or bond
				purchase. The loan agreement or bond purchase agreement, following execution by
				the local entity, constitutes a binding commitment for moneys from the
				Fund.
4.9. Loan Agreements/Bond
				Purchase Agreements. -- Prior to providing a loan to an applicant or purchasing
				the bonds of a disadvantaged community, the Authority and Instrumentality shall
				execute and enter into a loan agreement or bond purchase agreement, as
				applicable, with the applicant or disadvantaged community which shall be
				binding under the laws of the state and which shall contain such provisions as
				may be required by the Authority and the Instrumentality under the Act and the
				Clean Water Act including:
4.9.a. The cost of
				the project, the amount of the loan or the bonds, and the terms of repayment of
				the loan or bonds and the security therefore, which may include - in addition
				to a pledge of the fees, charges, and other revenues from such project after a
				reasonable allowance for operation, maintenance, renewal, and replacement
				expenses - 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 (1) year after project completion
				and that the final payment date shall not exceed twenty (20) years from said
				completion date; provided that in the case of a disadvantaged community that
				the final payment for the bonds shall not exceed the earlier of the useful life
				of the project or forty (40) years from said completion date;
4.9.b. The specific purposes for which the
				proceeds of the loan shall be expended, the procedures as to the disbursement
				of 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;
4.9.c.
				The agreement of the applicant to impose, collect, and, if required to repay
				the obligations of such applicant under the loan agreement/bond purchase
				agreement, increase service charges from persons utilizing the project. Service
				charges shall be pledged for the repayment of the loan or bonds together with
				all interest, fees, and charges thereon and all other financial obligations of
				the applicant under the loan agreement/bond purchase agreement;
4.9.d. 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/bond purchase agreement;
4.9.e. The agreement of the applicant to
				accept the Authority's remedies in the event of any default under the loan as
				specifically set forth in section 5 of the Act; and
4.9.f. The agreement of the applicant to
				comply with all applicable federal and state statutes and regulations and all
				applicable local ordinances pertinent to the financing, acquisition,
				construction, operation, maintenance, and use of the project.