Utah Admin. Code R317-101-15 - Financial Evaluations
A. The Board
considers it a proper function to assist and give direction to project
applicants in obtaining funding from such State, Federal or private financing
sources as may be available to achieve the most effective utilization of
resources in meeting the needs of the State. This may also include joint
financing arrangements with several funding agencies to complete a total
project.
B. Hardship Grants will
be evidenced by a grant agreement.
C. Loans will be evidenced by the sale of any
legal instrument which meets the legal requirements of the Title 11, Chapter
14, Local Government Bonding Act, to the Board.
D. The Board will consider the financial
feasibility and cost effectiveness evaluation of the project in detail. The
financial capability assessment must be completed as a basis for the review.
The Board will generally use these reports to determine whether a project will
be authorized to receive a loan, credit enhancement agreement, interest
buy-down agreement or hardship grant, as described in Sections
R317-101-5 through
R317-101-9. If a project is
authorized to receive a loan, the Board will establish the portion of the
construction cost to be included in the loan and will set the terms for the
loan. The Board will require the applicants to repay the loan as rapidly as is
reasonably consistent with the financial capability of the applicant. It is the
Board's intent to avoid repayment schedules which would exceed the design life
of the project facilities.
E. In
order to support costs associated with the administration of the loan program,
the Board may charge a loan origination fee. A recipient may use loan proceeds
to pay the loan origination fee. The loan origination fee shall be due at the
recipient's scheduled loan closing.
F. The Board shall determine the date on
which annual repayment will be made. In fixing this date, all possible
contingencies shall be considered, and the Board may allow the system user one
year of actual use of the project facilities before the first repayment is
required.
G. The applicant shall
furnish the Board with acceptable evidence that the applicant is capable of
paying its share of the construction costs during the construction period.
H. Loans and Interest Buy-Down
Agreements Only - The Board may require, as part of the loan or interest
buy-down agreement, that any local funds which are to be used in financing the
project be committed to construction prior to or concurrent with the committal
of State funds.
I. The Board will
not forgive the applicant of any payment after the payment is due.
Notes
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