(1) Successful governmental, tribal, and private grantees must enter into a written agreement with the bureau if the grantee wishes to continue the grant process. The written agreement must contain clear specifications for the work to be completed and a budget and other appropriate terms and conditions governing the performance of the grantee.

(2) The grantee shall document all project costs to be paid or reimbursed, and those to be credited as matching contributions.

(3) Grant funds that are not spent for the approved project must be returned to the renewable resource state special revenue account for use as directed by appropriation.

(4) Grant agreements with tribal governments in Montana must contain, in addition to other appropriate terms and conditions:

(a) a requirement that in the event a dispute or claim arises under the agreement, state law will govern as to the interpretation and performance of the agreement and that any judicial proceeding concerning the terms of the agreement will be brought in the district court of the first judicial district of the state of Montana;

(b) an express waiver of the tribal government's immunity from suit on any issue specifically arising from the transaction of a grant; and

(c) an express waiver of any right to exhaust tribal remedies signed by the tribal government.

(5) For successful governmental loans the borrower shall:

(a) furnish a bond resolution which contains the specific requirements and covenants with respect to the project financed from the loan proceeds; and

(b) enter into an agreement which:

(i) allows the department to purchase the applicant's bond or bond anticipation note, with the amount specified;

(ii) stipulates the terms of repayment and interest rates and fees to be paid by the borrower;

(iii) specifies the work to be completed;

(iv) specifies insurance requirements and inspection requirements; and

(v) specifies the conditions for the disbursal of funds.

(6) Loan agreements with tribal governments in Montana must contain, in addition to other appropriate terms and conditions:

(a) a requirement that in the event a dispute or claim arises under the agreement, state law will govern as to the interpretation and performance of the agreement and that any judicial proceeding concerning the terms of the agreement will be brought in the district court of the first judicial district of the state of Montana;

(b) an express waiver of the tribal government's immunity from suit on any issue specifically arising from the transaction of a loan; and

(c) an express waiver of any right to exhaust tribal remedies signed by the tribal government.

(7) For successful private loans, the borrower shall furnish title insurance showing ownership of land, mortgages, encumbrances, or other lien defects; and shall enter into a loan agreement with the department prior to project construction or equipment purchase. The loan agreement will:

(a) specify the loan administration fee;

(b) contain clear specifications for the work to be completed;

(c) stipulate a budget to be consistent with the application;

(d) specify provisions for the disbursement and repayment, including principal and interest of loan funds;

(e) describe the collateral provided to secure the loan;

(f) prescribe remedies for borrower delinquency or default in repayment; and

(g) specify that the recipient agrees to comply with Montana contracting and procurement laws applicable to state and federal agencies, counties, and municipalities. The agreement may provide specific guidance on compliance but may not waive compliance with the contracting or procurement laws.