Section R18-15-105. General Financial Assistance Conditions

A.      The Authority shall not execute a financial assistance agree- ment with an applicant until the applicant provides all docu- mentation specified by the Authority and the requirements of R18-15-106 are met. Projects under the Water Supply Devel- opment Revolving Fund Program are not subject to the requirements of R18-15-106. For planning and design loans that include an environmental information document or an environmental impact statement, the Authority may execute a financial assistance agreement with an applicant prior to the completion of the conditions of R18-15-106, provided that the applicant meets the requirements of R18-15-106 before pro- ceeding with the design of the selected alternative.

B.       The documentation required prior to execution of the financial assistance agreement shall at a minimum include:

1.        One copy of the governing body resolution approving the execution of the financial assistance agreement,

2.        A project budget, and

3.        An estimated disbursement schedule.

C.      The financial assistance agreement between the recipient and the Authority shall at a minimum specify:

1.        Rates of interest, fees, and any costs as determined by the Authority;

2.        Project details;

3.        The maximum amount of principal and interest due on any payment date;

4.        Debt service coverage requirements;

5.        Reporting requirements;

6.        Debt service reserve fund and repair and replacement reserve fund requirements;

7.        The dedicated source for repayment and pledge;

8.        The requirement that the recipient comply with applica- ble federal, state and local laws;

9.        A schedule for repayment; and

10.     Any other agreed-upon conditions.

D.      The Authority may require a recipient to pay a proportionate share of the expenses of the Authority’s operating costs.

E.       The recipient shall maintain the project account in accordance with generally accepted government accounting standards. After reasonable notice by the Authority, the recipient shall make  available  any  project  records  reasonably   required  to

determine compliance with the provisions of this Chapter and the financial assistance agreement.

F.       The Authority shall release loan proceeds subject to a dis- bursement request if the request is consistent with the financial assistance agreement and the disbursement schedule.

1.        The applicant shall submit each disbursement request on the forms provided by the Authority. Each disbursement request shall include a certification and signature docu- ment, a cost-incurred report, and a DBE report. The Authority shall not process a disbursement until the appli- cant provides a completed disbursement form.

2.        The applicant shall include copies of invoices, canceled checks, or other documents that show proof of eligible costs incurred with each disbursement request.

G.      The recipient shall make repayments according to an agreed- upon schedule in the financial assistance agreement. The Authority may charge a late fee for any loan repayment not paid when due. The Authority may refer any loan repayment past due to the Office of the Attorney General for appropriate action.

Historical Note

Adopted effective September 18, 1997 (Supp. 97-3). Amended by final rulemaking at 7 A.A.R. 5956, effective December 4, 2001 (Supp. 01-4). Section repealed; new Section made by final rulemaking at 16 A.A.R. 1709, effective October 9, 2010 (Supp. 10-3).