Iowa Admin. Code r. 261-406.8 - Administration
(1)
Notice
of approval or denial. The authority will notify applicants in writing
of the board 's approval or denial of an application . If the application is
approved, the notice will include any conditions and terms of the
loan .
(2)
Contract. After notifying the borrower of an award, the
authority will offer a contract to the borrower . The contract shall be between
the Iowa energy center and the borrower . An award shall not constitute a
binding contract.
(3)
Transmittal. The borrower must execute and return the contract
to the authority within 90 days of the transmittal of the final contract from
the authority . Failure to do so may be cause for the board to terminate the
award.
(4)
Disbursement of
funds. Borrowers shall submit requests for disbursement of funds on
the forms provided by the authority .
(5)
Amendment. Any
substantive change to the scope of work for a project or request to renegotiate
loan terms shall require an amendment to the contract. The board may consider
requests for loan forgiveness if the borrower demonstrates forgiveness is
necessary to avoid a negative material impact on the project or potential
default. The borrower shall request amendments in writing. No amendment shall
be valid until approved by the board . The authority may execute nonsubstantive
or ministerial changes to the contract without board approval.
(6)
Closeout. Upon contract
expiration or project completion, the authority shall initiate project closeout
procedures.
(7)
Record
keeping and retention. Borrowers shall retain all financial records,
supporting documents and all other records pertinent to the loan for three
years after the contract is closed or the loan is put in default and is not
cured.
(8)
Reporting and
compliance. The borrower shall complete all reports required by the
contract executed pursuant to subrule 406.8(2). The authority reserves the
right to conduct site visits of all awarded projects to ensure the projects
were built as proposed and to provide verification of ongoing operation. The
authority will monitor all loans to ensure that loan proceeds have been spent
as identified in the contract and that all other sources of financing have been
committed to the project .
(9)
Default.
a. At any time
during the project or the repayment of the loan , the authority may find that a
borrower is in default under the terms of the loan contract. The authority will
take prompt, appropriate, and aggressive debt collection action to recover any
funds misspent by borrowers.
b. If
the authority determines that a borrower is in default, the authority may seek
recovery of the loan plus interest or other penalties, negotiate alternative
payment schedules, suspend or discontinue collection efforts and take other
action as the authority deems necessary.
c. The authority shall attempt to collect the
amount owed. Any negotiated settlement, write-off, or discontinuance of
collection efforts is subject to final review by and approval of the
board .
d. If the authority refers a
defaulted contract to outside counsel for debt collection, then the terms of
the contract between the authority and the outside counsel regarding the scope
of counsel's authorization to accept settlements shall apply.
Notes
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