85-1-613. Limits on loans. (1) A loan to a private person for a renewable resource grant and loan program project may not be made from the renewable resource grant and loan program state special revenue account or the renewable resource loan proceeds account if the loan exceeds the lesser of $200,000 or 80% of the fair market value of the security given for the project. In determining the fair market value for the security given for a loan, the department shall consider appraisals made by qualified appraisers and other factors it considers important.
     (2) A loan to the state or a local government for a renewable resource grant and loan program project may not be made by the department from the renewable resource grant and loan program state special revenue account or renewable resource loan proceeds account if the loan exceeds the lesser of $200,000 or the project sponsor's remaining debt capacity.
     (3) The period for repayment of loans may not exceed 30 years.
     (4) The interest rate at which loans may be made under this part must be sufficient to:
     (a) cover the bond debt service for a loan; and
     (b) establish and maintain a loan loss reserve fund to be used for bond debt service if a loan loss occurs.

     History: En. Sec. 14, Ch. 505, L. 1981; amd. Sec. 4, Ch. 149, L. 1983; amd. Sec. 39, Ch. 298, L. 1983; amd. Sec. 4, Ch. 491, L. 1989; amd. Sec. 20, Ch. 478, L. 1993.