- (a) Interest on any loan funds disbursed to the recipient shall begin to accrue on the date of each disbursement of such funds by the state.
- (b) 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.
- (c) The interest rate charged on the outstanding balance of disbursed funds during repayment of the loan 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 loan agreement.
(d) The recipient shall pay interest charges incurred on disbursed funds by choosing to pay:
- (1) Prior to the commencement of the loan repayment; or
- (2) At the time of the first repayment, unless the charges are added to the outstanding principal balance at the recipient’s request; or
- (3) A combination of (1) and (2), above.
- (e) The interest rate during loan repayment shall be fixed over the loan repayment period.
Source. #12903, eff 10-23-19