01 NCAC 41C .0203 CONDITIONS AND LIMITATIONS
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.