1. (a) General limitations and conditions.
2. (1) Under the federal Robert T. Stafford Disaster Relief and Emergency Assistance Act and 82 O.S. Section 1085.93, the Board is authorized to use the Safeguarding Tomorrow Revolving Loan Account for the following purposes:
3. (A) To make a loan to an eligible entity if:
4. (i) The hazard mitigation project and planning documents have been approved by the Department,
5. (ii) The loan is made at or below market interest rates, including interest-free loans, at terms consistent with the federal Robert T. Stafford Disaster Relief and Emergency Assistance Act,
6. (iii) Principal and interest payments will begin not later than one year after completion of any hazard mitigation project, which completion date shall be determined by the Department, and all loans will be fully amortized consistent with the federal Robert T. Stafford Disaster Relief and Emergency Assistance Act,
7. (iv) The Safeguarding Tomorrow Revolving Loan Fund will be credited with all payments of principal and interest on all loans,
8. (v) The applicant demonstrates to the satisfaction of the Board the financial, legal and managerial capability to assure sufficient revenues to pay debt service,
9. (vi) The recipient of the loan establishes a dedicated source of revenue or other repayment source for payment of debt service for the loan,
10. (vii) The recipient agrees to maintain financial records in accordance with governmental accounting standards, to conduct an annual audit of the financial records relating to the hazard mitigation project and to submit the audit report to the Board on a scheduled annual basis, and
11. (viii) The project is identified in the Department's current Intended Use Plan.
12. (B) As a source of revenue or security for the payment of principal of and interest on any investment certificate issued by the Board. The proceeds of the sale of such investment certificates shall be deposited in the Safeguarding Tomorrow Revolving Loan Fund in compliance with applicable bond resolutions or indentures authorizing the sale;
13. (C) To earn interest on accounts established under the Safeguarding Tomorrow Revolving Loan Fund;
14. (D) To administer the Safeguarding Tomorrow Revolving Loan Fund pursuant to the provisions of 82 O.S. §§1085.91 et seq.; and
15. (E) For such other purposes or in such other manner, as is determined by the Board to be an appropriate use of the Safeguarding Tomorrow Revolving Loan Fund and which has been specifically approved by the Federal Emergency Management Agency pursuant to the federal Robert T. Stafford Disaster Relief and Emergency Assistance Act.
16. (2) Financial assistance shall not be made from the Safeguarding Tomorrow Revolving Loan Fund until the conditions in (1) of this subsection are met.
17. (b) Evidence of indebtedness. The financial assistance loans contemplated within this subchapter shall be provided by the Board for approved hazard mitigation projects pursuant to such notes, bonds, revenue bonds or other appropriate form of evidence of indebtedness from the applicant as the Board may require.
18. (c) Criteria for determining interest rates.
19. (1) The interest rates on loans to be made from the Safeguarding Tomorrow Revolving Loan Fund shall be in accordance with federal requirements or at or below market rates for similar indebtedness by eligible entities and may vary among classes or categories of eligible entities based on a joint agreement entered into by and between the Board and Department.
20. (2) Such criteria of the joint agreement may incorporate applicable United States Federal Emergency Management Agency or successor agency guidelines for financial assistance.
21. (d) Loan repayments. Payment on loans shall be made to the Board as provided in the loan documents.

Added at 42 Ok Reg, Number 20, effective 7-11-25