Minnesota Administrative Rules
Agency 170 - Public Facilities Authority
Chapter 7380 - LOAN PROGRAMS
DRINKING WATER REVOLVING FUND
Part 7380.0265 - LOAN TERMS AND CONDITIONS
Current through Register Vol. 49, No. 13, September 23, 2024
Subpart 1. In general.
Subject to the availability of funds, the authority shall provide loans or other financial assistance for eligible costs of projects listed in the fundable range on the intended use plan which are not rejected for any of the reasons listed in part 7380.0260, subpart 7. The act, other applicable federal laws and regulations, Minnesota Statutes, Minnesota Rules including parts 7380.0252 to 7380.0297, the capitalization grant, and the authority's basic bond resolution and series bond resolution, all as amended from time to time, govern the terms and conditions of the loan agreement issued by the authority. Except as provided in subpart 3, all borrowers shall issue a general obligation bond or a revenue bond to the authority as debt security for the loan agreement. The borrower's authorizing resolution for issuance of debt to the authority shall acknowledge the primacy of the terms and conditions of the loan agreement.
Subp. 2. Borrowers providing general obligation or revenue bonds.
A borrower providing a general obligation or revenue bond to the authority must use a nationally recognized bond counsel, identified as such and included in The Bond Buyer's Municipal Marketplace Directory, to prepare the bonds and other related documentation and render an opinion to the authority. Items A to F apply to borrowers providing general obligation or revenue bonds to the authority.
Subp. 3. Borrowers not providing general obligation or revenue bonds.
The authority shall provide financial assistance to a borrower not issuing a general obligation or revenue bond by utilizing a participation loan. The maximum participation must not exceed 50 percent of the loan balance at time of purchase or $50,000, whichever is less. The terms and conditions in items A to D apply to participation loans.
Statutory Authority: MS s 446A.07; 446A.081; 446A.11