Current through Register Vol. 49, No. 13, September 23, 2024
Subpart 1.
Timing.
Applicants whose projects are listed in the fundable range on
the intended use plan as described in part
7380.0422 must submit the
following within six months after the date the authority adopts the intended
use plan or an amendment to the intended use plan:
A. an application for financial assistance to
the authority; and
B. plans and
specifications for construction projects to the Pollution Control Agency as
provided in part
7077.0274.
Subp. 2.
Complete application.
An application must contain the required forms, data,
exhibits, and documentation for the authority to determine that:
A. the financing of the project is fully
assured;
B. the applicant has the
financial capability to repay the loan based on the authority's analysis of
user charges, special assessments, population trends, major employers, building
permits, largest taxpayers, trends of estimated market values, property tax
rates, property tax collection, net tax capacity, indebtedness, budget
forecasts, planned capital expenditures, and other information requested by the
authority to make an informed determination on the creditworthiness of the
applicant;
C. the applicant has
provided the assurances, certifications, and resolutions necessary to comply
with the various laws and regulations applicable to the fund; and
D. adequate collateral is being provided by
the applicant to secure the loan.
Subp. 3.
Evaluation of
applications.
The executive director and staff shall evaluate applications
for projects certified by the Pollution Control Agency to determine the
applicant's capacity to comply with parts
7380.0400 to
7380.0480, the act, Minnesota
Statutes, section
446A.07,
the loan agreement, and the covenants of the debt security that will be issued.
When the Pollution Control Agency's certification of an applicant's project and
the as-bid costs have been received, the staff shall provide a signed
recommendation to the authority, approved and countersigned by the executive
director, recommending whether the loan should be approved, approved with
special conditions, or rejected.
Subp.
4.
Rejection of application.
The authority or executive director on behalf of the
authority shall reject an application for financial assistance for one or more
of the following reasons:
A. failure
of the project to receive certification from the Pollution Control Agency under
part
7077.0281;
B. failure of the applicant to submit a
complete application as provided in subpart
2;
C. failure of the applicant to develop and
document dedicated sources of revenue sufficient to ensure debt service payment
of the loan to the authority and adequate operation and maintenance of the
facility;
D. failure of the
applicant to demonstrate that it has the technical, managerial, and financial
capability to construct the facility and adequately operate and maintain the
wastewater system for the term of the loan;
E. failure of the applicant to demonstrate
creditworthiness sufficient to repay the authority debt or adequately
collateralize the loan;
F. failure
of the applicant to demonstrate its capacity to comply with parts
7380.0400 to
7380.0480, the act, Minnesota
Statutes, section
446A.07,
the loan agreement, and the covenants of the debt security; or
G. failure of the applicant to correct a
default condition on a prior loan with the authority.
Statutory Authority: MS s
446A.07;
446A.081;
446A.11
