Vermont § 4782 - Conditions of loan agreement

§ 4782. Conditions of loan agreement

• (a) VEDA may make loans to applicants on behalf of the State for one or more of the purposes
  set forth in subsection 4781(b) of this title. Each loan shall be made subject to the following conditions: (1) The loan shall be evidenced by a note payable over a term not to exceed 30 years.
  Repayment shall commence not later than one year after completion of the project for
  which loan funds have been issued. (2) The loan shall be secured with assets as determined by VEDA. VEDA may also require
  that the applicant assign all or a portion of any revenues from the clean water project
  as security for the loan or may require the establishment of a reserve fund. (3) The rate of interest charged for loans shall be set by the State Treasurer, taking
  into consideration prevailing borrowing rates available to similarly situated applicants
  from private lenders and the administrative fees to be charged to applicants. VEDA,
  in cooperation with the Secretary, shall periodically recommend interest rates to
  be set by the State Treasurer that are the lowest practicable rates consistent with
  maintaining the long-term integrity of the Fund. The interest rate set by the State
  Treasurer may be less than the prevailing borrowing rates available to similarly situated
  applicants from private lenders, but not less than zero percent. (b) The loan agreement shall specify the terms and conditions of the loan and its repayment
  by the applicant, as well as other terms and conditions determined necessary by the
  Secretary and VEDA. (c) Disbursement of loan proceeds shall be based on certification to the Secretary and
  VEDA by the loan recipient demonstrating that the costs for which reimbursement is
  requested have been incurred and paid by the recipient. The recipient shall provide
  supporting evidence of payment upon the request of VEDA. Partial disbursements of
  loan proceeds shall be made not more frequently than monthly. (d) Interim financing charges or short-term interest costs may constitute an allowable
  cost of a project for which a loan is extended, provided VEDA approved in advance
  the terms, conditions, interest rate, and other related matters concerning the financing
  or interest cost. In the event short-term financing is unavailable to the applicant,
  VEDA may make interim loan disbursements not more frequently than monthly to the applicant
  and its general contractor as co-payees upon submission of a certified request for
  payment supported by actual invoices or other evidence satisfactory to VEDA of costs
  incurred. (e) VEDA shall have the right prior to making any disbursement of the loan proceeds to
  require confirmation from an independent registered professional engineer that any
  work has been performed according to project plans and specifications approved by
  the Secretary. (f) VEDA may require as part of the loan agreement that the applicant cause an audit of
  the project costs to be prepared and approved by VEDA prior to VEDA’s making final
  payment of the loan amount. (g) In the event of default, any amounts owed upon the loan shall be considered a debt
  for the purposes of 32 V.S.A. § 5932(4). VEDA may recover such debt pursuant to the setoff debt collection remedy established
  under 32 V.S.A. §§ 5933 and 5934. (Added 2017, No. 185 (Adj. Sess.), § 11, eff. May 28, 2018.)