PURPOSE: This rule establishes guidelines for the administration of the Loan Interest-Share Program and the loan process.

Secretwv Of state

Chapter 74tate loan Interest-Share Program

Editor’s Note: The secretary of state has determined that the publication of this rule in its entirety would be unduly cumbersome or expensive. The entire text of the material referenced has been filed with the secretary of state. This material may be found at the Office of the Secretary of State or at the headquarters of the agency and is available to any interested person at a cost established by state law.

1. (1) Forms. The commission shall prepare and make available to all districts sufficient copies of all forms necessary for district administration and shall further prepare and keep updated a handbook for district use in assisting in the administration of the Loan Interest- Share Program.
2. (2) Commission Call for Applications. At a time and so often as the commission determines that sufficient funds are available to the program, it may announce to soil and water districts their opportunity to submit eligible applications for participation in the program. Adequate time will be allowed the districts for advertisement and application preparation.
3. (3) Selection of Applicants for Participation. Following the conclusion of its call for applications, the commission shall review each application and approve for inclusion in the program those applicants qualifying as eligible according to these rules, commission policy and within the limits of fund availability to districts.
4. (4) Notification of Application Determination. The commission shall notify each district office of its determination recommending applicants and request from the participants verification, when available, of actual loan transaction by the applicable lending institution.
5. (5) Annual Reimbursement to Program Participant. Annual reimbursement contingent upon annual appropriations shall be for a sum equal to the participant’s annual interest payment, or the amount of interest earned by the state on funds equal to the participant’s initial loan principal, whichever is the lesser. The commission, upon receipt of the annual district verification of compliance with maintenance and operation requirements accompanied by the lender certification of annual interest payment, shall prepare a voucher for transmittal to the Office of Administration for preparation of a warrant payable to the program participant.
6. (A) Initial Year of Participation. Should the commission fail in the first year of participation to receive the district verification of proper implementation, installation or construction of eligible projects and practices and the lender IQ CSR 70-7

certification of annual interest payment, no voucher shall be prepared. (B) Subsequent Years of Participation. Should the commission fail to receive either the annual district verification of proper operation and maintenance of installed projects and practices or the lender certification of annual interest payment, no voucher shall be prepared. (C) And further, noncompliance with program provisions of proper maintenance and operation or failure to make annual interest payments shall terminate the appropriate participation in the Loan Interest-Share Program for the current and remaining years of the initial loan agreement. (D) Upon notification by the district board that a participant is in noncompliance with the maintenance and operation requirements of assisted projects or practices, or has failed to make an annualinterest payment, the commission shall forward correspondence to the participant informing him/her of the termination of participation with his/her options for appeal for reinstatement in the program. (6) Program Participant Recourse for Noncompliance. In the event that the participant is determined to be in noncompliance with provisions of the program, s/he may appeal through the district to the commission for reinstatement in the program. An appeal must be in writing and be submitted to the commission within thirty (30) days following commission notification to the participant of termination. The appeal shall state the participant’s position, present arguments in support of that position, any extenuating circumstances which s/he feels might lead to reinstatement and current and proposed efforts to conform to program requirements. The commission, in considering the appeal, may reinstate the participant into the program, if in the opinion of the commission all deficiencies and violations of program rules are corrected, or progress is being made towards compliance. At the discretion of the commission, any reinstatement of the participant may be retroactive to allow reimbursement of the previous year’s interest-share payment, or contingent upon corrections of deficiencies or violations! in which case, the program participant’s reimbursement of the previous year’s interest-share payment is forfeited. Auth: section 278.080, RSMo (1986). This rule was previously filed as IO CSR 70-5.150. Original rule filed July 12,196, effective Nov. 15, 1985. Amended: Filed Oct. 29,1987, effective Feb. 17, 1988.

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