1. (a) Following acceptance of an application for a loan from a non-governmental entity, the department shall send the applicant’s financial information to the DWGTF financial advisor for review.

2. (b) If the department determines, based on the assessment provided by the DWGTF financial advisor, that lending money to the applicant would not pose an unreasonable risk of loss due to non-repayment of funds provided to the applicant, the department shall prepare the initial loan documents (ILD) that contain the following provisions:

   1. (1) The loan amount;
   2. (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 ILD is transmitted to the recipient;
   3. (3) The length of the repayment term;
   4. (4) A description of the project;
   5. (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, or engineering contracts for the purpose of inspection, audit, and copying during normal business hours;
   6. (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;
   7. (7) Security for the loan; and
   8. (8) Any other provision(s) required by state or federal law in order for the agreement to be valid.
3. (c) The department shall send the drafted ILD to the DWGTF attorney and to the applicant for review and comment.
4. (d) f the applicant agrees to the terms of the ILD as approved by the DWGTF attorney, the department shall submit the unsigned ILD to the governor and executive council for approval.
5. (e) If the governor and executive council approve the ILD, the department and the recipient shall schedule a loan closing for a mutually-acceptable date and time.
6. (f) The recipient shall bring any additional documents identified by the DWGTF attorney and listed in the loan closing agenda to the closing.

7. (g) After the recipient signs the ILD, the department shall:

   1. (1) Sign the ILD; and
   2. (2) Provide a copy of the signed ILD to the recipient and the DWGTF attorney.
8. (h) The ILD shall be effective upon signing by the recipient and the department.

Source. #12903, eff 10-23-19