In this subchapter, the following terms have the meanings
indicated below and certain of the terms are supplemental to the definitions
contained in Title 75, chapter 6, parts 1 and 2, MCA; sections 300f through
300j-26 of the Federal Safe Drinking Water Act, 42 USC, as amended, and ARM
17.38.101, et seq. and
17.38.201, et seq. Terms used but
not defined herein have the meanings prescribed in ARM 17.38.101, et seq. and
17.38.201, et seq. or the indenture of trust. (Definitions (2), (16), (23),
(28), (29), (30), (33), (35), (36), (40), (41), (42), (43) and (52) are
statutory definitions.)
(1) "Act"
means Drinking Water State Revolving Fund Act, Title 75, chapter 6, part 2,
MCA.
(2) "
Administrative costs"
means costs incurred by the
department and the
department of environmental
quality in the administration of the program, including but not limited to:
(a) costs of servicing loans and issuing
debt;
(b) program startup
costs;
(c) financial, management,
and legal consulting fees; and
(d)
reimbursement costs for support services from other state agencies.
(3) "Administrative expense
surcharge" means a surcharge on each loan charged by the department to the
borrower expressed as a percentage per annum on the outstanding principal
amount of the loan, payable by the borrower on the same dates that payments of
principal and interest on the loan are due, calculated in accordance with these
rules.
(4) "Administrative fee"
means the fee expressed as a percentage of the initial committed amount of the
loan retained by the department from the proceeds of the loan at closing,
calculated in accordance with these rules.
(5) "Application" means the form of
application provided by the department and the department of environmental
quality which must be completed and submitted in order to request a
loan.
(6) "Binding commitment"
means an executed commitment agreement.
(7) "Bond" means an obligation issued by a
municipality pursuant to the provisions of Montana law and the code.
(8) "Bond anticipation note" means a note
issued by a municipality under the provisions of
7-7-109, MCA, in anticipation of
the issuance of long-term indebtedness for a project.
(9) "Borrower resolution" means a resolution
of a municipality authorizing the issuance of bonds and establishing the terms
and conditions and providing security therefor.
(10) "Borrower" means an entity to whom a
loan is made.
(11) "Borrower
obligation" means a bond or a loan agreement.
(12) "Closing" means, with respect to a loan,
the date of delivery of the borrower resolution and the borrower obligation to
the department.
(13) "Code" means
the Internal Revenue Code of 1986, as amended.
(14) "Commitment agreement" means a written
agreement between the borrower and the department pursuant to which the
department agrees to make a loan to the borrower in a specified principal
amount on or before the date and subject to the terms and conditions specified
in the agreement.
(15) "Community
water system" means a public water system that is owned by a private person or
a municipality and that serves at least 15 service connections used by
year-round residents of the area served by the system or regularly serves at
least 25 year-round residents. The term does not include a public water system
that is owned by the federal government.
(16) "
Cost" means, with reference to a
project, all capital costs incurred or to be incurred for a public water
system, including but not limited to:
(a)
engineering, financing, and other fees;
(b) interest during construction;
(c) construction; and
(d) a reasonable allowance for contingencies
to the extent permitted by the federal act and rules promulgated under the
federal act.
(17) "Debt"
means debt incurred to acquire, construct, extend, improve, add to, or
otherwise pay expenses related to the system, without regard to the source of
payment and security for such debt.
(18) "Department" means the Montana
department of natural resources and conservation.
(19) "Department of environmental quality"
means the Montana department of environmental quality.
(20) "Disadvantaged municipality" means one
in which the service area of a public water system meets the affordability
criteria established in these rules.
(21) "EPA" means the United States
environmental protection agency.
(22) "EPA agreement" means the operating
agreement between the state and the EPA.
(23) "Federal
act" means the Federal Safe
Drinking Water
Act, 42 USC
sections
300 f through 300j-26, as that
act
read on May 5, 1997.
(24) "General
obligation" means an obligation of a municipality pledging the full faith and
credit of and unlimited taxing power of the municipality.
(25) "Governing body" means the duly elected
or appointed board, council, or commission or other body authorized by law to
govern the affairs of the municipality.
(26) "Gross revenues" means with respect to
revenue bonds, all revenues derived from the operation of the system, including
but not limited to rates, fees, charges, and rentals imposed for connections
with and for the availability, benefit, and use of the system as now
constituted and of all replacements and improvements thereof and additions
thereto, and from penalties and interest thereon, and from any sales of
property acquired for the system and all income received from the investment of
all moneys on deposit in system accounts.
(27) "Indenture of trust" means the indenture
of trust between the board of examiners and a trustee establishing and
implementing the program, establishing certain terms and conditions for the
sale and issuance of the state's bonds to fund the program, providing for the
application of the proceeds of the state's bonds and the repayments of the
state's bonds and establishing the funds and accounts for the program as
amended or supplemented from time to time.
(28) "Indian tribe" means an Indian tribe
that has a federally recognized governing body carrying out substantial
governmental duties and powers over any area.
(29) "Intended use plan" means the annual
plan adopted by the department of environmental quality and submitted to the
EPA that describes how the state intends to use the money in the state
revolving fund.
(30) "Loan" means a
loan of money from the state revolving fund for project costs.
(31) "Loan agreement" means an agreement
entered into between a borrower other than a municipality and the department
evidencing a loan.
(32) "Loan loss
reserve surcharge" means a surcharge expressed as percentage per annum on the
outstanding principal amount of the loan at the rate determined in these rules
and imposed on all borrowers unless waived in accordance with the provisions of
these rules.
(33) "Municipality"
has the meaning set forth in
75-6-202, MCA.
(34) "Net revenues" means the entire amount
of gross revenues of the system less the actual operation and maintenance cost
plus additional annual costs of operation and maintenance estimated to be
incurred, including sums to be deposited in an operating reserve.
(35) "Noncommunity water system" means a
public water system that is not a community water system.
(36) "Nonprofit noncommunity water system"
means a noncommunity water system owned by an organization that is organized
under Montana law and that qualifies as a tax-exempt organization under the
provisions of section 501(c) (3) of the Internal Revenue Code.
(37) "Origination fee" means a fee in an
amount equal to a percentage of the committed amount of the loan, as specified
by the department, payable by the borrower at closing to the department either
from proceeds of the loan or other funds of the borrower.
(38) "Outstanding indebtedness bond" means
with respect to a municipality any bonds currently outstanding payable from
gross or net system revenues and with respect to a private person, any loan
payable in whole or in part from the same source as a proposed loan.
(39) "Priority list" means the list of
projects expected to receive financial assistance under the program, ranked in
accordance with a priority system developed under Section 216 of the
act.
(40) "Private person" means an
individual, corporation, partnership, or other nongovernmental legal
entity.
(41) "Program" means the
drinking water state revolving fund program established by the act.
(42) "
Project" means improvements or
activities that are:
(a) to be undertaken for
a public water system and that are of a type that will facilitate compliance
with the national primary drinking water regulations applicable to the system;
or
(b) to further the health
protection objectives of the federal act.
(43) "Public water system" means a system for
the provision to the public of water for human consumption, through pipes or
other constructed conveyances, if that system has at least 15 service
connections or regularly serves at least 25 individuals. The term includes any
collection, treatment, storage, and distribution facilities under control of an
operator of a system that are used primarily in connection with a system and
any collection or pretreatment storage facilities not under control of an
operator and that are used primarily in connection with a system.
(44) "
Reserve requirement" means the amount
required to be maintained in a reserve fund securing the payment of a
bond as
set forth in the commitment agreement, which amount shall be the:
(a) maximum annual debt service on the bond
in the then current or any future fiscal year during the term of the bond;
or
(b) if other bonds payable from
the revenues of the system are then outstanding, the maximum aggregate annual
debt service on all outstanding bonds and the additional bond proposed to be
issued in the then current or any future fiscal year during the term of the
outstanding bonds and the additional bond proposed to be issued.
(45) "Revenue" means revenues
(gross or net) received by the municipality from or in connection with the
operation of the system or project.
(46) "Revenue bonds" means bonds payable from
the net revenues derived from the system.
(47) "Security agreements" means agreements
entered into by borrowers to provide additional security for loans, including
letters of credit and mortgage, personal or corporate guarantee pledge
agreements.
(48) "Special
assessments" means assessments imposed on a property benefited from the
construction or operation of a project in accordance with Title 7, chapter 7,
parts 21, 41 and 42, MCA.
(49)
"Special improvement district bonds" means bonds payable from special
assessments.
(50) "State allocation
account" means the account in which state monies received through the sale of
the state's bonds are deposited.
(51) "State bonds" means the state's general
obligation drinking water state revolving fund program bonds.
(52) "State revolving fund" means the
drinking water state revolving fund established by
75-6-211, MCA.
(53) "System" means the public water system
and all extensions, improvements, and betterments thereof.
(54) "Tax-backed revenue bonds" means bonds
issued by county water and sewer districts pursuant to
7-13-2324 and
7-13-2302, MCA.
(55) "Tax increment revenue bond" means a tax
increment urban renewal revenue bond issued by a municipality pursuant to Title
7, chapter 15, parts 42 and 43, MCA, or other applicable law.