Section R305-4-10 - Servicing the Loans and Loan Repayment(1) Loan repayment schedules shall:(a) not exceed ten years, as required by Subsection 19-1-404(2)(b);(b) be based on the financial situation and income circumstances of each borrower;(c) be amortized with equal payment amounts;(d) be of such amount to pay all interest and principal in full; and(e) consider projected savings from the use of the clean vehicle as required by Subsection 19-1-404(2)(a). In determining projected savings, the department may use all current and relevant market cost information.(2) The initial installment payment is due on a date established by the department.(3) Subsequent installment payments are due:(a) on the first day of each month for private sector businesses; or(b) as determined by the department for government entities.(4) A notice of payment and due date shall be sent for each subsequent payment. Non-receipt of the statement of account or notice of payment shall not be a defense for non-payment or late payment.(5) Loans made from the fund for a government vehicle shall be made with no interest rate as required by Subsection 19-1-404(2)(d).(6) Loans made from the fund for a private sector vehicle shall be made at an interest rate provided by Subsection 19-1-404(2)(c).(7) Any changes in interest rates, re-negotiation of contract terms, or elimination of debt must be approved by the department.(8) Loan payments received shall be applied first to penalty, next to interest, and then to principal.(9) Loan payments may be made in advance or the remaining principal balance of the loan may be paid in full at any time without penalty.(10) Penalties for late loan payments shall be:(a) 10% of the payment due;(b) assessed and payable on payments received by the department more than 15 days after the due date;(c) assessed only once per scheduled payment; and(d) noticed to the borrower with the amounts of penalty and the total payment due.(11) Payments shall be considered received on the day of the U.S. Postal Service post mark date or receipted date for payments delivered to the department by methods other than the U.S. Postal Service.(12) If a loan payment check is returned due to insufficient funds, a service charge in the amount allowed by law shall be added to the payment amount due.(13) Notice of loans paid in full shall be sent after all penalties, interest, and principal have been paid.Utah Admin. Code R305-4-10
Amended by Utah State Bulletin Number 2023-04, effective 2/2/2023