1. (a) Subject to (c), below, the recipient shall repay all funds received and interest accrued thereon to the department as stipulated in the SLA or allonge, as applicable.
2. (b) The department shall deposit all funds that are repaid under this chapter to be credited directly to the DWSRF.
3. (c) A disadvantaged community that has received a loan subsidy as provided in 40 CFR 35.3525 shall repay only such funds and interest remaining, if any, after the subsidy is applied.

4. (d) Repayment shall:

   1. (1) Not exceed the loan term established in the SLA or allonge;

   2. (2) For governmental recipients, begin by:

      1. a. For infrastructure projects, the earlier of one year following substantial completion of the project or one year following the scheduled completion date as stated in the OLA; or
      2. b. For source water protection projects, one year following project completion; and

   3. (3) For non-governmental recipients:

      1. a. Commence interest-only payments by 6 months following:

         1. 1. For infrastructure projects, the earlier of substantial completion of the project or the scheduled completion date as stated in the ILD; and
         2. 2. For SWP projects, project completion; and

      2. b. Commence principal and interest repayments by one year following:

         1. 1. For infrastructure projects, the earlier of substantial completion of the project or the scheduled completion date as stated in the ILD; and
         2. 2. For SWP projects, project completion; and
5. (e) The loan shall be amortized on an annual basis for governmental entities and on a monthly basis for non-governmental entities.

6. (f) Should excusable delay be incurred beyond the scheduled completion date, the department shall:

   1. (1) Offer to modify the SLA or allonge, as applicable, to account for the delays; and
   2. (2) If the recipient so requests, negotiate an appropriate modification of the SLA or allonge, as applicable.
7. (g) Any recipient may repay a loan, in whole or in part, prior to the date stipulated in the SLA or allonge, as applicable, with no prepayment penalty.

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