Utah Admin. Code R362-3-7 - Loan Terms
(1) The maximum
amount that may be approved by the Advisor or Director for any single energy
efficiency project is $1,000,000. The minimum amount that may be approved is
$5,000.
(2) The final value of any
loan may vary from the Advisor or Director-approved amount according to the
actual incursion of costs by the political subdivision. In cases where costs
have exceeded those presented in the initial application, a political
subdivision may request that the Advisor or Director increase its loan award,
subject to the limitations of subsections (1) and (2) above.
(3) After approval of a loan application by
the Advisor or Director, a political subdivision has one year in which to
complete the energy efficiency project. If at the end of one year a political
subdivision is unable to meet this time limitation, it may request an extension
from the Office of no more than six additional months.
(4) Loan amounts from the Fund will be
reserved for periodic disbursement upon invoice approval at the discretion of
the Office. Expenditures will be documented in each quarterly progress report,
and the final 10% withheld pending a determination of substantial completion by
the Office.
(5) Once a project has
been completed, the political subdivision shall provide the Office
documentation of actual costs incurred, such as invoices from contractors, as
well as information on any third party financial incentives received. The
Office will use this information to determine the actual cost of the project
measures approved by the Advisor or Director.
(6) The final loan amount will be equal to
actual costs incurred for the project minus the value of any third party
incentives received unless
(a) This amount
exceeds $1,000,000, in which case the amount of the loan will be set at
$1,000,000; or
(b) This amount
exceeds the amount approved by the Advisor or Director, in which case the loan
amount will be set at the amount originally approved by the Advisor or
Director; or
(c) This amount
exceeds the amount approved by the Advisor or Director and the Advisor or
Director increases the loan award at the request of the political
subdivision.
(7) At the
discretion of the Office, interest will be charged to political subdivisions
receiving loans for energy efficiency projects from the Fund at or below market
interest rates.
(8) An
administrative fee may be charged to loan recipients to defray the cost of
servicing loan accounts.
(9) Loan
repayment periods will be set to any term desired by the applicant between two
and twelve years at the discretion of the Office. The loan repayment period for
a specific energy efficiency project begins with the first day of the next
quarter after all of the loan funds have been disbursed.
(10) Loan repayments will be due at the
beginning of each quarter.
(11)
Quarterly loan repayment amounts will be calculated using a standard
amortization schedule.
(12)
Political subdivisions that are approved for a loan award will enter into a
contract with the Office that specifies all terms applying to the loan,
including the terms specified in this rule and standard contract terms for
contracts and loans currently in effect for the State of Utah.
Notes
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