Tenn. Comp. R. & Regs. 0400-46-06-.08 - FINANCING METHOD
(1) A construction
loan, including loans made solely for equipment, shall be made for a period of
time not to exceed 30 years or the useful life, whichever is shorter.
(2) A Planning and Design loan shall not
exceed five years.
(3) Repayment of
the interest of the loan will begin upon reimbursement to borrower of costs
incurred.
(4) Repayment of the
principal amount of the construction loan shall begin within 90 days after
Initiation of Operation, or within 120 days after the borrower has borrowed 90
percent of the approved loan amount, whichever event occurs earlier.
(5) Repayment of the principal amount of
loans other than construction loans must begin within two years of loan
approval or within 120 days after the borrower has borrowed 90 percent of the
approved loan amount, whichever event occurs earlier.
(6) The interest rates for SRF loans shall be
fixed for the duration of the loan.
(7) The Department shall utilize the most
current Ability to Pay Index (ATPI) developed by the University of Tennessee
Center for Business and Economic Research to determine interest rates for SRF
borrowers. Interest rates shall not exceed market values according to
appropriate Bond Buyers Index. Local governments which fall within the lower
scale of the ATPI will be offered the lower interest rate.
(8) The Department will recommend interest
rates to the Authority.
Notes
Authority: T.C.A. ยงยง 68-221-1001 et seq. and 4-5-201 et seq.
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