2 CCR 605-1
DEPARTMENT OF TRANSPORTATION RULES AND REGULATIONS BY THE COLORADO DEPARTMENT OF TRANSPORTATION FOR THE COLORADO STATE INFRASTRUCTURE BANK 2 CCR 605-1 [Editor’s Notes follow the text of the rules at the end of this CCR Document.] _________________________________________________________________________ Chapter 1: General Provisions
1.1 Statutory Authority
The statutory authority for the Transportation Commission of Colorado (Commission) to adopt these rules is found in section 43-1-113.5(3), C.R.S.
1.2 Purpose
The purpose of these rules is to define eligibility requirements, prescribe the application and selection processes, and to detail certain terms for securing Financial Assistance, for public Transportation Projects within the State, from the CO SIB.
1.3 Applicability
These rules shall be applicable to any public or private Project Sponsor of public Transportation Projects within the State.
Chapter 2: Definitions The following definitions shall apply to terms used in the Rules.
2.1 “CAB” means the Colorado Aeronautical Board, a statutorily created board appointed by the Governor and approved by the Senate.
2.2 “CO SIB” means the Colorado State Infrastructure Bank.
2.3 “Commission” means the transportation commission of Colorado – the State’s transportation decision-making body.
2.4 “Default” means the condition of a loan where the recipient has failed to meet a contractual obligation and failed to cure within thirty (30) days, including but not limited to: failure to make the loan payment; failure to use loan proceeds for stated purpose; failure to submit progress reports.
2.5 “Department” means the Colorado Department of Transportation.
2.6 “Federal-aid program” means any funds authorized by the United States Congress to assist states in providing for transportation.
2.7 “Financial Assistance” means a loan or any credit assistance that the COSIB is authorized to offer.
2.8 “Interest Rate” means the semi-annual interest rate approved by the Commission.
2.9 “OFMB” means the Colorado Department of Transportation’s Office of Financial Management and Budget.
2.10 “Political Subdivision” means a county, municipality, Service Authority, or special district authorized to enter into intergovernmental agreements pursuant to § 29-1-203(2), C.R.S.
2.11 “Project Sponsor” means the entity or organization that is requesting Financial Assistance.
2.12 “Public-Private Initiative” means a nontraditional arrangement between the Department and one or more private or public entities as defined in §43-1-1201(3), C.R.S.
2.13 “Review Committee” or “Committee” means the SIB loan review committee as described in Rule 4.4.1) herein.
2.14 “State” means the state of Colorado.
2.15 “State Agency” means every entity in the executive branch of the State’s government including boards, commissions, departments, divisions, and offices.
2.16 “TIP/STIP” means the metropolitan planning organization’s multiyear Transportation Improvement Program/Statewide Transportation Improvement Program.
2.17 “Transportation Project” means the planned undertaking of an endeavor for the purpose of conveying passengers or goods.
Chapter 3: Eligibility Requirements for Financial Assistance
3.1 Eligible Project Sponsors
Entities eligible to receive Financial Assistance from the CO SIB shall include public entities such as Political Subdivisions and State Agencies. Also, private companies and non-profit organizations shall be eligible either with a local government partner, or under the authority of a Public-Private Initiative.
3.2 Eligible projects
3.3 Ineligible Projects
Qualified projects shall not include transportation facilities and other Transportation Projects that are restricted to private use.
Chapter 4: Disbursement of Moneys
4.1 Application process
4.2 Project Evaluation
The evaluation shall identify how the project will benefit from Financial Assistance and the capability of the Project Sponsor to meet the terms for debt repayment. The Review Committee shall evaluate the projects, and provide documentation and a recommendation regarding each project to the Commission or the CAB for aviation projects.
4.3 Evaluation Criteria. Project evaluations shall be accomplished by incorporating a rating scheme across specific criteria as described below:
4.4 Review Committee
The Review Committee shall evaluate loan applications based upon the responses to the criteria described in Rule 4.3 herein; examine loan documentation including the sponsor’s financial statements to assure that a pending loan meets CO SIB rules standards and statutory guidelines; review the planning and engineering aspects of the loan project. Also, develop procedures for executing loan contracts and, as required, review and, if appropriate recommend amending the terms of already executed loan contracts, periodically review maturing loans and progress reports, and in case of Default, decide what collection efforts should be taken to restore past-due loans and other nonperforming loans to satisfactory condition.
The Review Committee shall submit its recommendation and final evaluation to the OFMB. Regardless of the merits of the project or its total cost, the Committee shall not recommend to the Commission or the CAB that it lend an applicant an amount that it considers beyond the applicant’s capacity to repay even if it means the project cannot go forward at that time.
4.5 Funding Procedure
The OFMB shall present the Review Committee’s recommendation and evaluation to the Commission or the CAB for action, and the Commission or the CAB shall approve the requested amount or recommend a different maximum level of Financial Assistance for the project.
4.6 Loan Agreement
5.1 Interest earnings and/or origination fees are required to re-capitalize the CO SIB and to offset a portion of the cost of its administration. There shall be no interest-free loans. However, interest payments may be delayed for up to two years, and all accrued interest can be capitalized into the principal outstanding balance. In addition, an origination fee to partially offset the cost of administering the CO SIB may be assessed. If such fee is assessed, the calculated amount can be added to principal to be repaid according to the agreed upon amortization schedule.
5.2 Interest Rate –The Interest Rate for loans from the CO SIB shall be established and adopted by the resolution of the Commission not later than June 30 of each year for loans applied for during the ensuing months of July; August; September; October; November; December. An Interest Rate shall be established and adopted by resolution of the Commission not later than December 31 of each year for loans originating during the ensuing months of January; February; March; April; May; June.
5.3 Origination Fee – Pursuant to § 43-1-113.5(7), C.R.S., a fee may be charged to reimburse the Department for reasonable expenses incurred while administering the CO SIB. Not later the June 30 of each year, the Commission shall determine whether or not to assess an origination fee for the ensuing fiscal year. If assessed, the origination fee schedule shall be as follows: a maximum of one percent for loan proceeds up to $1 million, three-quarters of a percent for loan proceeds over $1 million and up to $2.5 million, one-half percent on the amount of loan proceeds over $2.5 million and up to $5 million, and one-quarter percent on the amount of loan proceeds over $5 million.
Chapter 6: Repayment of Loans
6.1 Loan Amortization
Financial Assistance in the form of a loan shall be amortized and simple interest shall be applied to the outstanding principal of each loan. An amortization schedule shall be attached to the loan agreement between the Department and the Project Sponsor.
6.2 Payback Period
The payback period for Financial Assistance shall be not more than ten years. The term of a loan requested by a Project Sponsor shall be one of the criteria used for evaluation.
6.3 Remedies in case of Default
If the recipient does not make a scheduled payment and fails to cure within thirty (30) days, the Department may assess a late charge penalty or initiate debt collection efforts to recover the amounts due.
Chapter 7: Declaratory Orders 7.1 The Transportation Commission and the Department may entertain, at their sole discretion, petitions for declaratory orders pursuant to § 24-4-105(11), C.R.S. relating to the CO SIB. _________________________________________________________________________ Editor’s Notes History Entire rule eff. 11/30/2009.
Entire rule eff. 06/14/2023.