§ 46-12.8-5 - Procedure for application, approval, and award of financial assistance.
SECTION 46-12.8-5
§ 46-12.8-5 Procedure for application,approval, and award of financial assistance. – (a) Any local governmental unit or privately organized water supplier may applyto the agency for financial assistance in accordance with this chapter tofinance all or any part of the cost of an approved project. The agency shallnot award financial assistance to such local government unit or privatelyorganized water supplier hereunder until and unless the department shall haveissued a certificate of approval of the project or portion thereof for whichsuch financial assistance has been sought.
(b) If the department shall determine, in accordance withrules and regulations promulgated pursuant to this chapter, that an applicationfor financial assistance or portion thereof shall be approved, it shall deliverto the agency a certificate of approval of the project or a portion thereofwhich shall specify the project or portion thereof eligible for financialassistance and such other terms, conditions and limitations with respect to theconstruction and operation of the project as the department shall determine.The agency shall specify, among other things, the type and amount of financialassistance to be provided from the safe drinking water revolving loan fund, theamount, if any, of subsidy assistance to be granted, the amount, if any, ofother financial assistance permitted by this chapter to be provided, and suchother terms, conditions, and limitations on the financial assistance, theexpenditure of loan proceeds, and the construction and operation of the projectas the agency shall determine or approve.
(c) In addition to the authority provided by law, thedepartment shall be responsible for, and shall have all requisite power to,review and approve reports and plans for safe drinking water projects andapproved projects, or any part thereof, for which financial assistance has beenapplied or granted in accordance with this chapter, to enter into contractswith local governmental units and private water companies relative to approvedprojects, including, without limiting the generality of the foregoing, thecosts of approved projects eligible for financial assistance, grants, and otherterms, conditions and limitations with respect to the construction andoperation of the project, and to inspect the construction and operation ofapproved projects in compliance with approved plans. Without limiting thegenerality of the foregoing, in connection with the exercise of its powers andperformance of its duties under this chapter, the department shall have all thepowers provided by law to the department and its director. The department shalladopt rules, regulations, procedures, and guidelines to carry out the purposesof this chapter and for the proper administration of its powers and dutiesunder this chapter. The rules, regulations, procedures, and guidelines shallinclude among other things, criteria for determining those safe drinking waterprojects, to be approved for financial assistance and specification of eligiblecosts of the projects. In order to provide for the expenses of the departmentunder this chapter, the agency shall transfer to the department for applicationto the expenses an amount from the safe drinking water revolving loan fundequal to an amount as the agency and the department shall reasonably determine.The agency and the department shall enter into an operating agreement and amendthe same, from time to time, allocating their respective rights, duties, andobligations with respect to the award of financial assistance and grants tofinance approved projects under this chapter and establishing procedures forthe application, approval, and oversight of projects, financial assistance, andgrants.
(d) Upon issuance of a certificate of approval, the agencyshall award as soon as practicable the financial assistance to the localgovernmental unit or privately organized water supplies for any approvedproject specified in the certificate; provided, however, the agency may declineto award any financial assistance which the agency determines will have asubstantial adverse effect on the interests of holders of bonds, notes or otherevidences of indebtedness of the agency or the interests of other participantsin the financial assistance program, or for other good and sufficient causeaffecting the finances of the agency. All financial assistance shall be madepursuant to a loan agreement between the agency and the local governmental unitor privately organized water supplier, acting by and through the officer orofficers, board, committee, or other body authorized by law, or otherwise itschief executive officer, according to the terms and conditions of thecertificate of approval and such other terms and conditions as may beestablished by the agency, and each loan shall be evidenced and secured by theissue to the agency of the local governmental obligations or obligations of theprivately organized water supplier, in fully marketable form in principalamount, bearing interest at the rate or rates specified in the applicable loanagreement, and shall otherwise bear such terms and conditions as authorized bythis chapter and the loan agreement.
(e) The agency shall adopt rules, regulations, procedures,and guidelines for the proper administration of its financial assistanceprograms and the provision of financial assistance under this chapter. Therules, regulations, procedures, and guidelines shall be consistent with anyrules, regulations, procedures, and guidelines adopted by the department, andmay include, without limitation, forms of financial assistance applications,loan agreements, and other instruments, and provisions for submission to theagency and the department by a local governmental unit or a privately organizedwater supplier of the information regarding the proposed safe drinking waterproject, the distribution system of which it is a part, and the localgovernmental unit or privately organized water supplies as the agency or thedepartment shall deem necessary to determine the eligibility of a project, forfinancial assistance under this chapter, the financial feasibility of aproject, and the sufficiency of general revenues or system revenues to secureand pay the loan and the local governmental obligations or obligations of theprivately organized water supplier issued to evidence the same.
(f) In addition to other remedies of the agency under anyloan agreement or otherwise provided by law, the agency may also recover from alocal governmental unit or privately organized water supplier, in an action insuperior court, any amount due the agency together with any other actualdamages the agency shall have sustained from the failure or refusal of thelocal governmental unit or privately organized water supplier to make thepayments.