(1) Loans shall be made only to local governments that:
- (a) Have the authority to operate a wastewater facility that is on the Priority Ranking List.
- (b) In the opinion of the Authority, demonstrate tangible financial capability to assure sufficient revenues to operate and maintain the wastewater facility for its useful life and to repay the loan;
- (c) Pledge security as required by the Authority for repayment of the loan;
- (d) Agree to adjust periodically fees and charges for services of the wastewater facility in order that loan payments and costs of the wastewater facility are timely paid;
- (e) Certify to comply with a plan of operation approved by the Department regarding the quality, compensation, and number of facility personnel for the life of the loan;
- (f) Agree to maintain financial records in accordance with governmental accounting standards and to conduct an annual audit of the facility’s financial records; and
- (g) Provide such assurances as are reasonably requested by the Authority and the Department.
- (2) Projects funded in whole or part from the SRF must be consistent with plans developed under Section 205, 208, 303(e) or 319 of the Clean Water Act.
- (3) Loans may be made to provide local governments with funds to conduct facilities planning and design.
Authority: T.C.A. §§ 68-221-1001 et seq. and 4-5-201 et seq. Administrative History: Original rule filed September 16, 2013; effective December 15, 2013. Rule originally numbered 1200-22-06.