1. (a) The interest rate charged on the outstanding balance of disbursed funds prior to the scheduled completion date or substantial completion date shall be equal to 1.0 % annually.
2. (b) The interest rate charged on the outstanding balance of disbursed funds after the date of scheduled completion or substantial completion, whichever is earlier, shall be based on the repayment period selected by the applicant and the interest rate established in the applicable IUP (IUP rate) that is in effect at the time the loan agreement is transmitted to the loan recipient pursuant to Env-Dw 1107.02(b) or Env-Dw 1107.03(c), as applicable, as shown in (c), below.

3. (c) Unless otherwise specified in the applicable IUP, and subject to adjustment pursuant to Env-Dw 1107.11, the interest rate based on the repayment period selected by the applicant shall be as shown in table 1107-1, below:

   Table 1107-1: Interest Rate Based On Repayment Period Selected by Applicant

   Repayment Period Selected

   Interest Rate

   5 years

   25% of IUP rate

   10 years

   50% of IUP rate

   15 years

   75% of IUP rate

   20 years

   80% of IUP rate

   More than 20 years, if available under the specific capitalization grant from which the funds are loaned

   Calculated as specified in the
   applicable IUP

Source. (See Revision Note #1 and Revision Note #2 at chapter heading for Env-Dw 1100) #13160, eff 1-20-21