01.
Loan
Offer. Loan offers will be delivered to successful applicants by
representatives of the Department or by registered mail. (3-24-22)
02.
Acceptance of Loan Offer.
Applicants have sixty (60) days in which to officially accept the loan offer on
prescribed forms furnished by the Department. The sixty (60) day acceptance
period commences from the date indicated on the loan offer notice. If the
applicant does not accept the loan offer within the sixty (60) day period the
loan funds may be offered to the next project of priority. (3-24-22)
03.
Acceptance Executed as a Contract
Agreement. Upon signature by the Director and upon signature by the
authorized representative of the eligible applicant, the loan offer shall
become a contract. Upon accepting a loan offer, an eligible applicant becomes a
loan recipient. The disbursement of funds pursuant to a loan contract is
subject to a finding by the Director that the loan recipient has complied with
all loan contract conditions and has prudently managed the project. The
Director may, as a condition of disbursement, require that a loan recipient
vigorously pursue any claims it has against third parties who will be paid in
whole or in part, directly or indirectly, with loan funds. No third party shall
acquire any rights against the state or its employees from a loan contract.
(3-24-22)
04.
Estimate of
Reasonable Cost. All loan contracts will include the eligible costs of
the project. Some eligible costs may be estimated and disbursements may be
increased or decreased as provided in Section
060. (3-24-22)
05.
Terms of Loan Offers. The
loan offer shall contain such terms as are prescribed by the Department
including, but not limited to: (3-24-22)
a.
Terms consistent with these rules, the project step to be funded under the loan
offer, and Title 39, Chapter 36, Idaho Code; (3-24-22)
b. Special clauses as determined necessary by
the Department for the successful investigation, design, construction and
management of the project; (3-24-22)
c. Terms consistent with applicable state and
federal laws pertaining to planning documents, design, and construction,
including the Public Works Contractors License Act and the Public Contracts
Bond Act, Chapter 19, Title 54, Idaho Code, and the federal Clean Water Act and
Safe Drinking Water Act requirements for projects funded with loan moneys of
federal origin; (3-24-22)
d.
Requirement for the prime engineering firm(s) and their principals retained for
engineering services to carry professional liability insurance to protect the
public from the engineer's negligent acts and errors and omissions of a
professional nature. The total aggregate of the engineer's professional
liability insurance shall be one hundred thousand dollars ($100,000) or twice
the amount of the engineer's fee, whichever is greater. Professional liability
insurance must cover all such services rendered for all project phases, whether
or not such services or phases are state funded, until the certification of
project performance is accepted by the Department; (3-24-22)
e. The project shall be bid, contracted and
constructed according to the current edition of Idaho Standards for Public
Works Construction unless the loan recipient has approved and adopted
acceptable public works construction standards approved by the Department;
(3-24-22)
f. The loan interest rate
for loans made during the state fiscal year beginning July 1 will be
established by the Director. The interest rate will be a fixed rate in effect
for the life of the loan. The rate may equal but shall not exceed the current
market rate; (3-24-22)
g. The loan
fee pursuant to Section
032; (3-24-22)
h. All loans must be fully amortized within a
period not to exceed thirty (30) years after project completion. The loan
contract will be appended with a schedule of loan repayments stating the due
dates and the amount due upon project completion. The loan recipient may elect
for either a schedule of semi-annual or annual repayments at the time the loan
is finalized; and (3-24-22)
i.
Repayment default will occur when a scheduled loan repayment is thirty (30)
days past due. If default occurs, the Department may invoke appropriate loan
contract provisions and/or bond covenants. (3-24-22)
