Ala. Admin. Code r. 335-11-2-.09 - Terms Of Assistance Agreements From The DWSRF

(1) The Department may offer loans for projects for up to 100 percent of allowable project costs with a range of options regarding the term and interest rate.
(2) The principal amount of the loan shall be repaid over a period not to exceed EPA requirements or the life of the facilities being financed, whichever is sooner. Repayment shall begin no later than one year after estimated completion of construction, or three years from the date of loan award, whichever comes first. Thereafter, loan repayments shall be made in accordance with the loan amortization in the assistance agreement. The repayment period may be equal to less than the EPA-permitted maximum at the discretion of the Department.
(3) Capitalized interest, if applicable, shall be charged to the borrower as detailed in the assistance agreement.
(4) Loan interest shall be charged to the borrower as detailed in the assistance agreement.
(5) The applicant shall prepare an operation and maintenance manual for any new or substantially upgraded water treatment plant.
(6) The applicant shall conform to all federal, state, and local laws pertaining to construction of the project and procurement of design, inspection, and construction services.
(7) The Department may assess penalties for late loan repayments as stipulated in the assistance agreement.
(8) To ensure adequate funds for major maintenance and replacement of the projects funded by this program, the applicant may be required to set aside annually to a replacement reserve fund from current revenues, after taking into account costs of operations and maintenance and debt service requirements, an amount to be determined by the Department. Funds may be withdrawn from the account if major maintenance or replacement of equipment in excess of budgeted amounts is required.
(9) The assistance agreement shall contain terms and conditions that the Department deems necessary to maintain the financial integrity of the DWSRF.
(10) Loans shall be made only to public entities that:
(a) Are included on the project priority list;
(b) In the opinion of the Department, have demonstrated the technical, financial, and managerial ability to operate and maintain the facilities over their useful life and to repay the loan;
(c) Provide security for repayment of the loan;
(d) Are not in default with any outstanding debt indentures, grant agreements, or loans;
(e) Agree to periodically adjust user fees and charges in order that a revenue stream is generated sufficient to operate and maintain the facilities and repay the loan;
(f) Agree to maintain records in accordance with governmental accounting standards and to conduct annual audits of the public body's financial records; and,
(g) Provide assurances as reasonably required by the Department and EPA.
(11) The Department may impose such other conditions as may be necessary and appropriate to implement the Safe Drinking Water Act and laws of the State.
(12) The specific terms and conditions of the DWSRF loan shall be incorporated in the assistance agreement to be executed by the applicant and the Department.

Notes

Ala. Admin. Code r. 335-11-2-.09
New Rule: Filed October 23, 2012; effective November 27, 2012. Amended by Alabama Administrative Monthly Volume XXXVIII, Issue No. 05, February 28, 2020, eff. 4/13/2020.

Authors: Aubrey H. White III, Kris Berry

Statutory Authority: Code of Ala. 1975, ยงยง 22-23B-1, 22-23B-2, 22-23B-3, 22-23B-12.

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