West Virginia Code of State Rules › Agency 64 - Health › Title 64 - LEGISLATIVE RULE WEST VIRGINIA DEPARTMENT OF HEALTH AND HUMAN RESOURCES › Series 64-49 - Drinking Water Treatment Revolving Fund › Section 64-49-7 - 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 applicant and purchased
				by the water development authority, at par or at a discount to reflect the
				costs of the water development authority and the division incurred to the
				financing, in whole or in part, of 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 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 public
				water system that has water development authority under applicable law to
				undertake a project and has been approved as an eligible recipient by the
				division 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 division and when moneys are available for loan the water
				development authority and the division shall provide the public water system
				with a 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 drinking water
				treatment revolving fund financial assistance shall be identified in the annual
				intended use plan as described in Section 3 of this rule. Only those projects
				on the State project priority list for the current fiscal year shall be
				considered by the water development authority for financial assistance from the
				drinking water treatment revolving fund.
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 division under the Safe
				Drinking Water Act including:
7.4.a. 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.b. 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 the project completion and that the final payment shall not exceed
				twenty (20) years from said completion date except as provided in Section 8 of
				this rule;
7.4.c. 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.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;
7.4.e.
				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.f. 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.