36.23.119    REQUIREMENTS FOR DISBURSING OF LOAN

(1) Loans will be disbursed by warrants drawn by the department of administration or wire transfers authorized by the state treasurer or the department in accordance with the provisions of this rule, and the indenture of trust.No disbursement of any loan shall be made unless the department has received from the borrower the following:

(a) a duly approved and executed bond resolution in a form acceptable to the department;

(b) a duly executed bond or promissory note in a principal amount equal to the amount of the loan in a form acceptable to the department;

(c) a certificate of the borrower that there is no litigation threatened or pending challenging the borrower's authority to undertake the project, to incur the loan, or issue the bonds, collect the system charges in a form acceptable to the department or to pledge its revenues or assets to the repayment of the loan or bonds;

(d) in the case of a borrower that is a municipality, an opinion of bond counsel acceptable to the department that the bond is a valid and binding obligation of the municipality payable in accordance with its terms and that the interest in a form acceptable to the department thereon is exempt from state and federal income taxation in a form acceptable to the department;

(e) in the case of a borrower who is a private person, an opinion of bond counsel to the department that the note and loan agreement are valid and binding obligations of the private person payable in accordance with their terms and that the making of the loan will not cause any bonds issued as tax-exempt bonds by the state to finance the program to become taxable;

(f) such other closing certificates or documents that the department or bond counsel may require to satisfy requirements of these rules;

(g) if all or part of a loan is being made to refinance a project or reimburse the borrower for the costs of a project paid prior to the closing, evidence satisfactory to the department and the bond counsel:

(i) that the acquisition or construction of the project was begun no earlier than July 1, 1993;

(ii) of the borrower's title to the project;

(iii) of the costs of such project and that such costs have been paid by the borrower; and

(iv) if such costs were paid in a previous fiscal year of the borrower, that the borrower intended at the time it incurred such costs to finance them with tax-exempt debt or a loan under a state revolving fund program such as the program.

(h) any certificate of insurance as evidencing insurance coverage as required by these rules and the bond resolution;

(i) a certified copy of the rate and charge ordinance, if applicable, and if subject to approval by another entity, evidence that such approval has been obtained;

(j) all permits or licenses that may be required by the state, any of its agencies and political subdivisions with respect to the project;

(k) executed copy of the construction contract accompanied by the appropriate performance and payment bonds;

(l) any additional documents required by the department or department of environmental quality as a condition to the approval of the loan described in the bond purchase agreement;

(m) a written order signed by a department of environmental quality representative authorizing a disbursement;

(n) a copy of the municipality's request for such disbursement on the form prescribed by the department; and

(o) payment of the administrative fee and the origination fee, unless excepted from these requirements by the department.

History: 75-6-205, MCA; IMP, 75-6-224, MCA; NEW, 1998 MAR p. 1412, Eff. 5/29/98; AMD, 2004 MAR p. 2288, Eff. 9/24/04.