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Memorandum Agenda Item 10c 01/27,28, 1999
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Memorandum Agenda Item 10c 01/27,28, 1999
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8/8/2016 12:33:45 PM
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Board Meetings
Board Meeting Date
1/27/1999
Description
Board Meeting Water Project Construction Loan Program - Revisions to the Guidelines for Interest Rate Setting
Board Meetings - Doc Type
Memo
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A <br /> r <br /> • Long Range Plan. [Aug 94] <br /> U b In recommending loans for specific projects which involve matters of state-wide concern, <br /> U� (Y such as interstate compacts, the staff may recommend to the Board a lending rate <br /> somewhat lower than the adopted rate for that particular class of borrower. [Nov 97] <br /> P. Deviations from the standard terms will be based on staff and Board review of the benefits of <br /> the project to the State coupled with the financial capacity of the project sponsors. Deviation <br /> from standard loan terms may require additional documentation of financial need. [Aug 94] <br /> 04J In general, Construction Fund loans will be utilized to supplement those funds which could be <br /> f 1/\ made available to the project sponsor from other sources. [Aug 94] <br /> 04 <br /> r. The project sponsor must provide adequate security to guarantee repayment of the loan. The <br /> security may be: <br /> • <br /> 6�lly <br /> • title to project property equal in value to the loan; <br /> • a pledge of revenues or taxes; or <br /> • bonds,notes or other securities. [Aug 94] <br /> s. Any request for geferment of payment on an existing loan will require either: (1) the <br /> l l 7 borrower to pay interest for the period in which the loan payment was deferred or(2) <br /> • 'r calculation of a new loan amortization schedule which provides for adding to the <br /> principal of the loan the interest which accrues during the period in which the loan <br /> payment is deferred. [Nov 97] <br /> • <br /> 5 <br />
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