(a) Following acceptance of an application for a loan from a governmental entity, the department shall prepare an original loan agreement (OLA) that contains the following provisions:
- (1) The loan amount;
- (2) The interest rate for the loan determined by the commission, provided that if the commission has established an interest rate that can vary over time, the rate shall be the rate in effect at the time the OLA is transmitted to the recipient;
- (3) The length of the repayment term;
- (4) A description of the project;
- (5) Authorization for representatives of the department to examine any of the loan recipient’s records that pertain to transactions relating to the loan agreement, construction contracts, engineering contracts, or other consulting contracts for the purpose of inspection, audit, and copying during normal business hours;
- (6) For all projects that include more than just land acquisition, a requirement for the recipient to develop and adhere to an asset maintenance and renewal plan for the funded improvements; and
- (7) Any other provision(s) required by state or federal law in order for the agreement to be valid.
- (b) The department shall transmit the OLA to the recipient for review. If the recipient wishes to receive the funds, the recipient shall sign and date the OLA and return the signed OLA to the department.
- (c) Upon receipt of a signed OLA, the department shall sign the OLA and submit the OLA to the governor and executive council for approval.
(d) If approved by the governor and executive council, then:
- (1) The OLA shall be effective upon approval; and
- (2) The department shall send a copy of the approved OLA to the recipient.
Source. #12903, eff 10-23-19