§ 9-20A-06. General provisions regarding loans

   (a) Use. -- Loans from the Fund may be used for:

   (1) the costs of implementing projects, including the costs of all necessary:

      (i) technical assessments;

      (ii) studies;

      (iii) surveys;

      (iv) plans and specifications; and

      (v) start-up, architectural, engineering, or other special services;

   (2) the costs of procuring necessary technology, equipment, licenses, or materials; and

   (3) the costs of construction, rehabilitation, or modification, including the purchase and installation of any necessary machinery, equipment, or furnishings.

(b) Contribution. -- Each borrower shall make a contribution to a project that is of a type and amount acceptable to the Administration.

(c) Anticipated energy cost savings. -- If the sole or primary purpose of the project is to reduce energy consumption, the borrower must document that the anticipated energy cost savings over a defined period after the completion of the project are greater than the cost of the project.

(d) Repayment and interest. -- Loans made under the Program shall:

   (1) be repayable by the borrower from specified revenues that may include the energy cost savings generated by a project;

   (2) bear interest at a rate that the Administration determines to be necessary and reasonable for the project; and

   (3) be repayable in accordance with a schedule that the Administration sets, which may be on a deferred payment basis.

(e) Assurances for repayment. --

   (1) A borrower shall provide assurances for the repayment of a loan.

   (2) The assurances:

      (i) shall include a promissory note; and

      (ii) may include superior or subordinate mortgage liens, guarantees of repayment, or other forms of collateral.

(f) Other financial assistance. -- Loans may be made in conjunction with, or in addition to, financial assistance provided through other State or federal programs.

(g) Deposit into revolving loan fund of county's economic development commission. --

   (1) A loan under the Fund may be deposited into a revolving loan fund of a county's economic development commission if the county approves the transaction and project for the local jurisdiction.

   (2) If a county accepts a loan under paragraph (1) of this subsection, the funds deposited from the Fund may be used only for purposes of providing capital for renewable energy infrastructure projects under this subtitle.

HISTORY: 2008, ch. 466, § 2; ch. 467, § 2; 2009, ch. 169.