(a) Application fees.

1. (1) Upon the Arkansas Natural Resources Commission approving a project’s funding from the general obligation bond program funds, the applicant shall be obligated to pay an application fee, as determined by the commission, up to three percent (3%) of the total amount of financial assistance requested under these programs.

2. (2) The application fee will immediately be due and payable when and if:

   1. (A) The applicant has secured other funding to replace the commission’s obligated funds;
   2. (B) The applicant fails to proceed in a timely manner through project completion, after the commission has obligated the project’s funds;
   3. (C) The applicant is not in compliance with all of the commission’s rules; or
   4. (D) Directed by the commission in the terms and conditions.
3. (3) The application fee shall automatically be part of the servicing fees collected at loan closing, unless previously due and payable per subdivision (a)(2) of this section.
4. (4) The commission may waive the application fee to an applicant that for reasons outside the applicant's control cannot undertake the approved project.

(b) Servicing fees.

1. (1) All applicants for the Water, Waste Disposal, and Pollution Abatement Facilities General Obligation Bond Program, the Water Resources Development General Obligation Bond Program, and the Waste Disposal and Pollution Abatement Facilities General Obligation Bond Program shall pay a servicing fee at loan closing of up to three percent (3%) of the total amount of the financial assistance provided under these programs for application, issuance, and administrative costs of the programs as determined by the commission.

2. (2)

   1. (A) A loan servicing fee rate may be charged to the borrower’s loan repayments.
   2. (B) The servicing fee rate is part of the combined loan rate.
   3. (C) The servicing fee rate and the combined loan rate will be determined by the commission.

3. (3)

   1. (A) These servicing fees will be deposited in the accounts of the commission and applied to defray the cost of the applicable programs.
   2. (B) Upon return of any unneeded funds, the servicing fee associated with those funds will not be refunded.