N.J. Admin. Code § 7:22-4.6

Current through Register Vol. 56, No. 24, December 18, 2024

Section 7:22-4.6 - Terms of the loans from the Trust

(a) The Trust may offer loans for up to 100 percent of allowable project costs for the construction of environmental infrastructure facilities but may offer a range of options regarding the term, interest rate and level of loan funding.

(b) The term of the Trust loans will not exceed 20 years or as indicated in the Trust loan agreement. Trust loan repayments shall be made by the recipient in accordance with the repayment schedule indicated in the Trust loan agreement. Principal and accrued interest with respect to a particular Trust loan may, however, be prepaid in accordance with the provisions of the relevant Trust loan agreement. Interest on the Trust loan will accrue as indicated in the financial plan submitted to the Legislature pursuant to Section 21 of the Trust Act.

(c) Applicants shall secure all Trust loans in a manner acceptable to the Trust. Acceptable security arrangements include, but are not limited to, general obligation bonds of the local government unit, service/deficiency agreement(s) with other local government units with general taxing power, bond insurance, surety bonds, revenue bonds, debt service reserve funds, letters of credit and other arrangements acceptable to the Trust.

(d) Trust loan proceeds will be disbursed to recipients in accordance with N.J.A.C. 7:22-4.24.

(e) The specific terms and conditions of the Trust loan shall be incorporated in the Trust loan agreement to be executed by the Trust and recipient.

N.J. Admin. Code § 7:22-4.6

Amended by R.1988 d.210, effective 5/16/1988.
See: 19 New Jersey Register 1600(a), 20 New Jersey Register 1076(a).
Deleted text in (b) "Interest shall accrue from the date of the Trust loan disbursement" and inserted new "Interest on the ...".
Amended by R.1992 d.42, effective 1/21/1992.
See: 23 New Jersey Register 3282(a), 24 New Jersey Register 246(a).
Stylistic changes and N.J.A.C. reference added at (d).
Amended by R.1998 d.407, effective 8/3/1998.
See: 30 New Jersey Register 1144(a), 30 New Jersey Register 2863(a).
In (a), substituted "environmental infrastructure" for "wastewater treatment"; and in (c), substituted "Applicants" for "Local government units", deleted "municipal" preceding "bond insurance", and inserted "revenue bonds, debt service reserve funds" at the end of the second sentence.
Amended by R.2000 d.284, effective 7/3/2000.
See: 32 New Jersey Register 363(a), 32 New Jersey Register 2426(b).
In (c), inserted ", letters of credit" following "funds", and deleted a reference to the Department.