Loans are made subject to the following conditions and limitations:

(1)           Interest shall be charged at the rate of three percent per annum and one percent for renewable and recycling projects;

(2)           The amount of the loan shall not exceed allowable costs;

(3)           The repayment schedule shall be based on the estimated payback as shown in the Technical Analysis report;

(4)           Payments shall be made at a frequency of not less than once per month;

(5)           The total amount of the loan, or any portion thereof may be repaid at any time without penalty;

(6)           Rebates received through other program offerings of the State Energy Office for projects undertaken from loan proceeds shall be used to reduce the amount of principal;

(7)           The borrower shall warrant that all work or construction done with the proceeds of a loan under this program shall comply with all building codes and standards;

(8)           Project implementation shall begin within 90 days after approval of the application.  If delays are encountered following loan closing, any arbitrage profits will be repaid to the revolving fund;

(9)           Loans shall not be used to replace an existing loan;

(10)         Loan payments or drafts shall be sent or delivered to the DOA Fiscal Department at its current address as stated in the loan agreement;

(11)         A letter of credit from a bank approved to do business in North Carolina shall secure the loan against non‑payment and also serve as a quarterly drafting mechanism for loan repayment from the bank; and

(12)         No loans shall be forgiven.


History Note:        Authority G.S. 143-345.18(b)(2a); 143-345.18(b)(3);

Eff. August 1, 2004.