6-09.5 Community Water Facility Loans
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<![CDATA[CHAPTER 6-09.5COMMUNITY WATER FACILITY LOANS6-09.5-01. Community Water Facility Loan Act - Intent. Moneys transferred underthis chapter shall be used primarily for supplementary financing in conjunction with federal<br>moneys available under the authority of 7 U.S.C. 1926 and 1927 [Pub. L. 87-128; 75 Stat. 308],<br>as amended through December 31, 1996, and the rules and regulations promulgated thereunder<br>for the construction, enlargement, extension, or other improvement of community water facilities.<br>This chapter is intended to improve the health, general welfare, convenience, and prosperity of<br>communities and rural inhabitants presently lacking adequate water supplies.6-09.5-02. Community water facility - Definition. The term "community water facility"includes any or all projects for the development, storage, treatment, purification, and distribution<br>of water.Such projects include, but are not limited to, those works necessary for locating,conserving, controlling, treating, and distributing water, including reservoirs, dams, canals, wells,<br>pumps, treatment plants, mains, pipelines, and other associated features necessary to supply<br>water.6-09.5-03. Transfer of funds - Revolving fund. A community water facility loan fundwith an authorized ceiling of ten million dollars is hereby established from the future undivided<br>profits of the Bank of North Dakota. This is a revolving fund, and all moneys transferred into the<br>fund, interest upon fund moneys, and collections of interest and principal on fund loans must be<br>used for the purposes of this chapter.6-09.5-04. Loan applications - Approval. Applications for revolving fund loans must besubmitted to the Bank of North Dakota which shall investigate and consider approval of loan<br>applications under such rules and regulations as it may establish. The Bank shall cooperate with<br>the state office of the farmers home administration or its successor in considering applications to<br>comply with the requirements of 7 U.S.C. 1926 and 1927 [Pub. L. 87-128; 75 Stat. 308], as<br>amended through December 31, 1996, and the rules and regulations promulgated thereunder<br>relating to community water facilities.6-09.5-05. Fund supervision and administration. The revolving fund and loans madetherefrom must be supervised and administered by the Bank of North Dakota which shall make<br>loans from the revolving fund to the extent moneys are available. Payments of interest and<br>principal upon loans must be made to the Bank and credited to the revolving fund. The Bank<br>may deduct one-half of one percent of the outstanding loans annually as a service fee for<br>administering the revolving fund.6-09.5-05.1.Audit and costs of administration.The industrial commission isresponsible for contracting with a certified public accounting firm to audit the revolving fund as<br>necessary. The cost of the audit, and any other actual costs incurred by the Bank on behalf of<br>the fund, must be paid for by the fund.6-09.5-06. Fund purposes.1.Revolving fund moneys may not be used whenever sufficient federal loan and grant<br>moneys are available, except:a.To make community water facility projects feasible in conjunction with federal<br>moneys when the projected cost is above the maximum per user feasibility loan<br>limit set by the farmers home administration or its successor.b.To provide supplemental financing for community water facility projects in<br>conjunction with federal moneys when more projects can be completed through<br>combined financing.Page No. 12.Revolving fund moneys may also be used for the following purposes under such<br>terms and conditions as the Bank of North Dakota may prescribe:a.To provide loans for necessary services prior to farmers home administration<br>approval of proposed community water facility projects. Cities eligible under<br>this chapter and associations, corporations, or cooperatives organized for the<br>purposes of this chapter under the laws of North Dakota are eligible for loans<br>under this subdivision.b.To provide loans to cover operating expenses of community water facility<br>projects when the borrower is unable to pay such expenses.3.The Bank of North Dakota may defer interest and principal payments on revolving<br>fund loans for up to three years to provide time for a community water facility to<br>become self-supporting.6-09.5-07. Loan terms. Revolving fund loans approved by the Bank of North Dakotamust in no event exceed fifty percent of the cost of a community water facility project. Such<br>loans must bear interest at a rate of three percent per annum.6-09.5-08. Loan eligibility. Applicants eligible for loans shall include cities eligible under7 U.S.C. 1926 [Pub. L. 87-128; 75 Stat. 308], as amended through December 31, 1996, and<br>associations, cooperatives, and corporations operated on a nonprofit basis which have the legal<br>authority necessary for constructing, operating, and maintaining the proposed facility or service<br>and for obtaining, giving security for, and repaying the loan in accordance with farmers home<br>administration requirements. Applicant cities, associations, cooperatives, and corporations shall<br>seek to include cities and rural areas, eligible under farmers home administration rules and<br>regulations and located near a proposed service area, as part of a water facility project. Reasons<br>for not including such cities and rural areas must be approved jointly by the Bank of North Dakota<br>and the farmers home administration.6-09.5-09. Project service area alternatives. Applicants for revolving fund loans shallconsider available alternatives to select the most efficient and economically feasible methods of<br>planning a community water facility project. In addition to central systems, community water<br>facility projects may provide service through installations for individual usage or for small clusters<br>of users within the central system service area, but who are beyond the physical or economic<br>limits of the central system, when it is more feasible to provide such service through individual or<br>remote facilities in accordance with farmers home administration rules and regulations.6-09.5-10. Rules and regulations. The Bank of North Dakota may promulgate andadopt such rules as are necessary to carry out the provisions of this chapter and meet the<br>requirements of 7 U.S.C. 1926 and 1927 [Pub. L. 87-128; 75 Stat. 308], as amended through<br>December 31, 1996, and the rules and regulations promulgated thereunder relating to community<br>water facilities.6-09.5-11. Powers of Bank of North Dakota. The Bank of North Dakota is authorizedto do everything necessary to make revolving fund loans. This specifically includes the power to<br>take such security as deemed necessary and to bring suit to collect interest and principal due the<br>revolving fund under contracts and notes executed pursuant to this chapter.Page No. 2Document Outlinechapter 6-09.5 community water facility loans]]>