830-RICR — Infrastructure Bank

Chapter 00 General Administration

Subchapter 00 General Administration

830-RICR-00-00-1 Petition for Promulgation of Rules

830-RICR-00-00-1 § 1.1 Purpose:

The purpose of this regulation is to prescribe the form of a Petition for Promulgation of Rules pursuant to R.I. Gen. Laws § 42-35-6 and the procedure for its submission, consideration, and disposition.

History

• Periodic Refile — effective from 2022-01-04 to current
• Adoption — effective from 2018-06-25 to 01/04/2022

830-RICR-00-00-1 § 1.2 Authority:

This regulation is promulgated pursuant to the authority granted in R.I. Gen. Laws § 42-35-6.

History

• Periodic Refile — effective from 2022-01-04 to current
• Adoption — effective from 2018-06-25 to 01/04/2022

830-RICR-00-00-1 § 1.3 Definitions:

A.The following definitions shall apply to this regulation:

1.“Department” means Rhode Island Infrastructure Bank (“Bank”)

2.“Petition” means a request for the Promulgation of a Rule.

3.“Petitioner” means a person requesting the promulgation of a rule.

4.“Promulgate”, with respect to a Rule, means the process of writing a new Rule, or amending or repealing an existing Rule.

5.“Rule” means the whole or a part of an agency statement of general applicability that implements, interprets, or prescribes law or policy or the organization, procedure, or practice requirements of an agency and has the force of law. The term includes the amendment or repeal of an existing rule. The term is used interchangeably with the term “regulation.” The term does not include the exceptions listed in R.I. Gen. Laws §§ 42-35-1(19)(i) through (vi).

History

• Periodic Refile — effective from 2022-01-04 to current
• Adoption — effective from 2018-06-25 to 01/04/2022

830-RICR-00-00-1 § 1.4 Request for the Promulgation of a Rule:

A.A request to Promulgate a Rule must be in writing and include the following information:

1.The name and address of the Petitioner;

2.A plain statement identifying the rule or proposed new rule at issue;

3.A detailed statement of all facts relied upon by the Petitioner;

4.A plain statement requesting the Promulgation of a Rule, and further indicating whether Petitioner seeks a new Rule or the amendment or repeal of an existing Rule.

a.In the case of a request for the repeal of an existing Rule, the Petitioner shall identify the Rule by title and/or RICR citation.

b.In the case of a request for an amendment to an existing Rule, the Petitioner must identify with specificity any proposed additions, deletions, or other amendments. New proposed language must be clearly marked using underline formatting for proposed insertions, and strikethrough formatting for proposed deletions.

B.A request for the Promulgation of a Rule must be submitted to: Executive Director, Rhode Island Infrastructure Bank, 235 Promenade Street, Suite 119, Providence, Rhode Island 02908.

History

• Periodic Refile — effective from 2022-01-04 to current
• Adoption — effective from 2018-06-25 to 01/04/2022

830-RICR-00-00-1 § 1.5 Consideration and Disposition of Request for the Promulgation of a Rule:

A.The Department shall promptly consider and respond to the request for the Promulgation of a Rule as provided in R.I. Gen. Laws § 42-35-6.

B.The Department may, at its discretion and within the thirty (30) day period prescribe by statute:

1.Hold a hearing for further consideration and discussion on the Petition; or

2.Request further information or documents from the Petitioner necessary for the full evaluation of his or her Petition.

History

• Periodic Refile — effective from 2022-01-04 to current
• Adoption — effective from 2018-06-25 to 01/04/2022

830-RICR-00-00-2 Declaratory Order Petitions

830-RICR-00-00-2 § 2.1 Purpose:

This regulation states the requirements for submitting a request for Declaratory Order under R.I. Gen. Laws § 42-35-8(b), and the procedure for its consideration and prompt disposition.

History

• Periodic Refile — effective from 2022-01-04 to current
• Technical Revision — effective from 2018-06-22 to 01/04/2022
• Adoption — effective from 2018-06-22 to 06/22/2018

830-RICR-00-00-2 § 2.2 Authority:

This regulation is promulgated pursuant to the authority granted in R.I. Gen. Laws § 42-35-8.

History

• Periodic Refile — effective from 2022-01-04 to current
• Technical Revision — effective from 2018-06-22 to 01/04/2022
• Adoption — effective from 2018-06-22 to 06/22/2018

830-RICR-00-00-2 § 2.3 Definitions:

A.The following definitions shall apply to this regulation:

1.“Declaratory order” means an order issued by the Department that:

a.Interprets or applies a statute administered by the Department;

b.Clarifies whether a rule, guidance document, or order issued by the Department applies to a Petitioner; or

c.Clarifies how a rule, guidance document, or order issued by the Department applies to a Petitioner.

2.“Department” means Rhode Island Infrastructure Bank (“Bank”)

3.“Petition” means a request for a Declaratory Order.

4.“Petitioner” means a person requesting a Declaratory Order.

History

• Periodic Refile — effective from 2022-01-04 to current
• Technical Revision — effective from 2018-06-22 to 01/04/2022
• Adoption — effective from 2018-06-22 to 06/22/2018

830-RICR-00-00-2 § 2.4 Request for Declaratory Order: Form and Submission:

A.A request for Declaratory Order must be in writing and include the following information:

1.The name and address of the Petitioner;

2.A plain statement identifying the statute, rule, guidance document or order at issue;

3.A detailed statement of all facts relied upon by the Petitioner;

4.A copy of any and all documents relied upon by Petitioner that are not otherwise accessible to the Department; and

5.A plain statement requesting a Declaratory Order, and further indicating whether Petitioner seeks:

a.An interpretation or application of a statute administered by the Department;

b.Clarification as to whether a rule, guidance document, or order issued by the Department applies to Petitioner; and/or

c.Clarification as to how a rule, guidance document, or order issued by the Department applies to Petitioner.

B.A request for a Declaratory order must be submitted to: Executive Director, Rhode Island Infrastructure Bank, 235 Promenade Street, Suite 119, Providence, Rhode Island 02908.

History

• Periodic Refile — effective from 2022-01-04 to current
• Technical Revision — effective from 2018-06-22 to 01/04/2022
• Adoption — effective from 2018-06-22 to 06/22/2018

830-RICR-00-00-2 § 2.5 Consideration and Disposition of Request for Declaratory Order

A.The Department shall promptly consider and respond to the request for the Promulgation of a Rule as provided in R.I. Gen. Laws § 42-35-8(c).

1.Should the Department schedule the matter for further consideration, the Department shall notify Petitioner in writing of the anticipated date on which the Department will grant or deny the request for Declaratory Order.

B.The Department may, at its discretion:

1.Hold a hearing for further consideration and discussion on the Petition; or

2.Request further information or documents from the Petitioner necessary for the full evaluation of his or her Petition.

3.A Petitioner may appeal the Department’s final disposition of the request for Declaratory Order as provided in R.I. Gen. Laws § 42-35-15.

History

• Periodic Refile — effective from 2022-01-04 to current
• Technical Revision — effective from 2018-06-22 to 01/04/2022
• Adoption — effective from 2018-06-22 to 06/22/2018

830-RICR-00-00-3 Conduct of Public Hearings

830-RICR-00-00-3 § 3.1 Purpose:

To establish a defined set of procedures for Rhode Island Infrastructure Bank for the conduct of Public Hearings regarding Proposed Rulemaking.

History

• Periodic Refile — effective from 2022-01-04 to current
• Adoption — effective from 2018-06-22 to 01/04/2022

830-RICR-00-00-3 § 3.2 Authority:

This regulation is promulgated pursuant to the authority granted in R.I. Gen. Laws § 42-35-2(a)(4).

History

• Periodic Refile — effective from 2022-01-04 to current
• Adoption — effective from 2018-06-22 to 01/04/2022

830-RICR-00-00-3 § 3.3 Definitions:

A.The following definitions shall apply to this regulation:

1.“Department” means Rhode Island Infrastructure Bank (“Bank”)

2.“Member of the public” means any individual, firm, business, corporation, association, partnership or other group.

3.“Presiding department official” means the Bank employee conducting the Public Hearing.

4.“Public hearing” means the convening of Members of the Public and Department personnel for the purpose of obtaining public comment on a Proposed Rulemaking.

5.“Proposed rulemaking” means a proposed new rule, proposed amendment to a rule or proposed repeal of a rule as noticed pursuant to R.I. Gen. Laws § 42-35-2.7.

History

• Periodic Refile — effective from 2022-01-04 to current
• Adoption — effective from 2018-06-22 to 01/04/2022

830-RICR-00-00-3 § 3.4 Procedure for Conduct of Public Hearings

A.Convening of Public Hearing

1.Public Hearings may be held at the election of the Department or as required pursuant to R.I. Gen. Laws § 42-35-2.8(c).

2.Notice of Public Hearings shall be issued in accordance with the provisions of R.I. Gen Laws §§ 42-35-2.8 and 42-26-6, when applicable.

3.The Public Hearing shall be held at a time and place designated by the Department.

B.Transcription

1.The Public Hearing shall be transcribed by a stenographer or audio recorded.

2.For Public Hearings, any official transcript, recording, or memorandum summarizing presentations prepared by a Department official shall be made part of the rulemaking record in accordance with R.I. Gen. Laws § 42-35-2.3(b)(5).

C.Testimony

1.Oral Testimony

a.Members of the public may make oral testimony during the meeting.

b.Members of the public who wish to make oral testimony during the meeting must put their name on the speaker list.

c.Members of the public will be called to testify in the order which their names appear on the speaker list.

2.Written Testimony

a.Written testimony must be submitted via e-mail, fax, hand delivery or regular mail to: Executive Director, Rhode Island Infrastructure Bank, 235 Promenade Street, Suite 119, Providence, Rhode Island 02908.

D.Disruptive Conduct

1. Members of the Public attending the Public Hearing shall not cause disruptions, including but not limited to: screaming, loud noises, and disorderly gesticulations, which interrupt or distract from the testimony of other Members of the Public or from the ability of the Presiding Department Official to conduct the Public Hearing.

History

• Periodic Refile — effective from 2022-01-04 to current
• Adoption — effective from 2018-06-22 to 01/04/2022

Chapter 10 Programs

Subchapter 15 Septic and Sewer

830-RICR-10-15-1 Clean Water State Revolving Fund Loan Policies and Procedures

830-RICR-10-15-1 § 1.1 Purpose:

The within Loan Policies and Procedures of Rhode Island Infrastructure Bank (the "Bank") have been established to govern the lending activities of the Water Pollution Control Revolving Fund and the Rhode Island Water Pollution Control Revolving Fund in accordance with the State Water Pollution Control Revolving Funds, 33 U.S.C. §§ 1381 to 1388 and R.I. Gen. Laws Chapter 46-12.2 as amended.

History

• Periodic Refile — effective from 2022-01-04 to current
• Amendment — effective from 2018-06-01 to 01/04/2022
• Adoption — effective from 2015-02-15 to 06/01/2018
• Periodic Refile — effective from 2001-12-13 to 02/15/2015

830-RICR-10-15-1 § 1.2 Definitions:

Except as otherwise defined herein, the words and phrases used within these Loan Policies and Procedures have the same meaning as the words and phrases have in R.I. Gen. Laws Chapter 46-12.2 as amended.

History

• Periodic Refile — effective from 2022-01-04 to current
• Amendment — effective from 2018-06-01 to 01/04/2022
• Adoption — effective from 2015-02-15 to 06/01/2018
• Periodic Refile — effective from 2001-12-13 to 02/15/2015

830-RICR-10-15-1 § 1.3 Financial Assistance:

These Policies and Procedures govern the provision of financial assistance to local governmental units, persons or corporations (collectively "Borrowers") to finance costs of approved water pollution abatement projects in the form of loans with below market interest rates or interest rate subsidies which reduce the cost of financing these projects by at least 33%. Financially distressed Borrowers may receive financial assistance greater than 33% as long as these loans do not have an adverse effect on other participants in the loan programs of the Bank; bond holders; other creditors of the Bank; or the finances of the Bank. In determining those Borrowers that qualify as "financially distressed" the Bank may consider the criteria set forth in R.I. Gen. Laws §§ 45-13-12(b)(1) through (4) as amended.

History

• Periodic Refile — effective from 2022-01-04 to current
• Amendment — effective from 2018-06-01 to 01/04/2022
• Adoption — effective from 2015-02-15 to 06/01/2018
• Periodic Refile — effective from 2001-12-13 to 02/15/2015

830-RICR-10-15-1 § 1.4 Loan Application:

A.Requests for financing should be submitted in writing by the Chief Executive Officer or other authorized officer of the Borrower to the Executive Director of the Bank. The written request shall include:

1.A description of the project to be financed with the projected construction and completion schedule. In the case of a refinancing, a description of the completed project and the terms and source of previous financing.

2.A description of the dedicated source of loan repayment, i.e., general revenues, or wastewater system revenues

3.A description of the overall operations of the Borrower, including but not limited to the most recent annual report or audited financials, with an emphasis on

a.legal structure;

b.management;

c.sources of revenues;

d.operating expenses;

e.operating surpluses or deficits;

f.actual results versus budget; and

g.sources of financial liquidity.

4.Legal authority or authorities to construct, finance and operate the project.

5.The past five years Audited Financial Statements in accordance with Generally Accepted Government Accounting Standards.

6.Financial and demographic information.

7.For revenue bonds, financial projections over the life of the financing showing sources of revenues, operating expenses, capital replacement reserves, user fee impact analysis, and cash available for debt service.

8.Such other information as the Bank may reasonably require.

History

• Periodic Refile — effective from 2022-01-04 to current
• Amendment — effective from 2018-06-01 to 01/04/2022
• Adoption — effective from 2015-02-15 to 06/01/2018
• Periodic Refile — effective from 2001-12-13 to 02/15/2015

830-RICR-10-15-1 § 1.5 Loan Approval Process:

A.Loan approvals are subject to the following terms:

1. that all projects to be funded appear on the Rhode Island Department of Environmental Management's ("RIDEM") Project Priority List and have Certificates of Approval issued;

2. that the loan comply with all federal, state and Bank laws, rules and regulations;

3. that the loan and debt service requirements be approved by any applicable regulatory Agency;

4. that a satisfactory loan agreement be signed by all parties to the transaction;

5. that the loan will be made subject to availability of funds as related to the Bank's capacity; and that the loan will be made subject to ranking on RIDEM's Project Priority List.

6.The Bank will conduct a financial analysis for each loan application which may include, but not be limited to:

a.sources of revenue and financial liquidity

b.historical and projected financial operating results

c.present and future debt service requirements

d.impact of dedicated user fees and/or general revenues

e.cost of the project and completion schedule

f.long term capital replacement planning

g.socioeconomic conditions and trends

h.management qualifications and experience

i.effects of legal structure and any regulator control

j.any other information that the Bank or its Board of Directors may require.

7.In addition, the Bank may take into consideration the Affordability Criteria established by the Bank and RIDEM posted on the Bank's website.

B.If the Board approves the application, a Commitment Letter will be issued to the Borrower for their acceptance, outlining the terms and conditions of the loan.

History

• Periodic Refile — effective from 2022-01-04 to current
• Amendment — effective from 2018-06-01 to 01/04/2022
• Adoption — effective from 2015-02-15 to 06/01/2018
• Periodic Refile — effective from 2001-12-13 to 02/15/2015

830-RICR-10-15-1 § 1.6 Terms and Conditions:

A.Borrowing Rate - The stated interest rate on the Borrower bond, which is the Borrower's market rate (the "Market Rate"), is the prevailing market taxable or tax-exempt interest rate for issuers of comparable creditworthiness to the Borrower, as determined by the Bank on the advice of the Financial Advisor after consultation with the Borrower. Subject to adjustment by the Bank from time to time, the subsidized interest rate for the Loan is 66 2/3% of the Market Rate (the "Subsidized Interest Rate"). The Borrower will be obligated by the Borrower bond to pay the Market Rate, but will be billed only for the Subsidized Interest Rate. If the Borrower or other borrowers of the Bank should default in timely payment of debt service on the Loan or on the loans made to such other borrowers of the Bank, the Bank may require the Borrower to pay up to the Market Rate on the Borrower Bond.

1.Interest is to be calculated based on a 360-day year and twelve thirty-day months, and may be capitalized during construction. Interest payments are semi-annually on March 1 and September 1.

B.Loan Fees - An origination fee of the greater of $1,000 or one percent (1%) of the principal amount of the Loan will be payable to the Bank by the Borrower at the time of the Loan's closing. All other costs incidental to the Borrower's role in the transaction, i.e. legal fees, financial advisory fees, bond insurance premiums and the like, will be paid by the Borrower. The Bank will charge an annual service fee of one-half of one percent (0.5%) of the Loan's outstanding principal, payable semi-annually at each interest payment date. A late payment of five percent (5%) of the amount of the late payment will be charged for every 15 days that a payment is late.

C.Amortization - Amortization will begin at a mutually agreed upon date, but in no case later than the earlier of three (3) years after loan closing or September 1 after completion of the construction of the projects. Principal payments will be made annually on September 1st and the schedule of payments will be structured to meet the debt service and financial assistance needs of the Borrower.

D.Final Maturity - Loans shall mature no later than thirty years after the Loan closing.

E.Prepayments - A loan may be prepaid by the Borrower at any time but may be subject to a prepayment penalty based on the cost of reinvesting the prepayment, the cost of prepaying outstanding bonds of the Bank or any other negative financial impact to the Bank.

F.Security - Loans will have a pledge of

1.general revenues and/or wastewater system revenues; and/or

2.may be secured by any other assets and upon such other terms and conditions as the Bank deems appropriate to protect the interests of the other participants in the loan programs of the Bank; bondholders; other creditors of the Bank; bondholders; or the finances of the Bank.

G.Construction Progress Payments - Progress payments for each construction project will be made through an account established for the Borrower. Loan proceeds will be transferred monthly from the Borrower account for each borrower based upon approved Requisition Forms submitted to the Bank. Upon receipt of the Requisition Form, the Bank will verify:

1.that a Certificate of Approval has been issued by RIDEM;

2.the vendor is identified in the contract; and

3.there is sufficient availability in the Borrower account to make the payment.

a.Payments will be made directly to the vendor and/or the Borrower for reimbursements by the Bank, and a "paid" stamped copy of the Requisition Form will be sent to the Borrower and RIDEM. RIDEM will perform periodic project inspections to:

(1)monitor construction progress;

(2)verify eligibility of construction cost under the program; and

(3)ensure construction is in conformity with Plans and Specifications.

b.RIDEM will provide a copy of the inspection report to the Bank. Any adverse conditions will be reported to the Bank who will suspend further payments until the adverse conditions have been rectified. RIDEM will perform a final project inspection before the final payment is made by the Bank.

History

• Periodic Refile — effective from 2022-01-04 to current
• Amendment — effective from 2018-06-01 to 01/04/2022
• Adoption — effective from 2015-02-15 to 06/01/2018
• Periodic Refile — effective from 2001-12-13 to 02/15/2015

830-RICR-10-15-1 § 1.7 Reporting Requirements:

A.Borrowers will be required to provide information to the Bank during the life of the loan, including, but not limited to:

1.A copy of its Annual Audited Financial Statements in accordance with Generally Accepted Government Accounting Standards, annually within nine months of end of fiscal year.

2.An annual analysis of operating revenues and expenses, including without limitation, a description of the status of the dedicated wastewater system revenues and/or general revenues and operating expenses in excess of budget and a schedule of current and projected user rates.

3.A copy of the annual budget of the Borrower, within fifteen days of its adoption.

4.An annual schedule of current and projected short term and long term debt service.

5.An annual schedule of Capital Replacement Reserves.

6.Copies of reports submitted to RIDEM, the Environmental Protection Agency ("EPA") and any other regulatory agency relating to the projects financed by the Bank or the operation thereof.

7.Other information or reports that the Bank deems appropriate.

History

• Periodic Refile — effective from 2022-01-04 to current
• Amendment — effective from 2018-06-01 to 01/04/2022
• Adoption — effective from 2015-02-15 to 06/01/2018
• Periodic Refile — effective from 2001-12-13 to 02/15/2015

830-RICR-10-15-1 § 1.8 Loan Agreements:

There will be a Loan Agreement with the Borrower outlining the terms and conditions of the Bank's loan. The Borrower's repayment obligation to the Bank under the agreement will be evidenced by a bond(s) of the Borrower outlining the loan's specific terms and condition. The bonds shall be in fully marketable form, accompanied by documentation, in form and substance satisfactory to the Bank and an opinion, in form and substance satisfactory to the Bank, of nationally recognized bond counsel satisfactory to Bank as to its valid authorization, execution, delivery and enforceability, as well as its federal and state tax consequences, and may include an opinion that the bonds are not private activity bonds within the meaning of the Internal Revenue Code of 1986, as amended (the "Internal Revenue Code") 26 U.S.C. § 141.

History

• Periodic Refile — effective from 2022-01-04 to current
• Amendment — effective from 2018-06-01 to 01/04/2022
• Adoption — effective from 2015-02-15 to 06/01/2018
• Periodic Refile — effective from 2001-12-13 to 02/15/2015

830-RICR-10-15-1 § 1.9 Compliance with State and Federal Law:

A.The Borrower must comply with all applicable state laws and regulations. Recipients of loans must also comply with all requirements of 33 U.S.C. §§1381 to 138 and regulations and guidance issued thereunder in addition to any other applicable federal laws and regulations.

B.In addition, the Borrower must agree to take all action, or refrain from taking any action, that would cause interest on any obligations of the Bank to be included, for federal income tax purposes, in the gross income of the holders of such obligations.

History

• Periodic Refile — effective from 2022-01-04 to current
• Amendment — effective from 2018-06-01 to 01/04/2022
• Adoption — effective from 2015-02-15 to 06/01/2018
• Periodic Refile — effective from 2001-12-13 to 02/15/2015

830-RICR-10-15-1 § 1.10 Modifications:

Where deemed appropriate by the Bank, waiver or variation of any provisions herein may be made or additional requirements may be added.

History

• Periodic Refile — effective from 2022-01-04 to current
• Amendment — effective from 2018-06-01 to 01/04/2022
• Adoption — effective from 2015-02-15 to 06/01/2018
• Periodic Refile — effective from 2001-12-13 to 02/15/2015

830-RICR-10-15-1 § 1.11 Severability:

If any provision of these rules and regulations or the application thereof to any local government unit, person, or corporation is held invalid by a court of competent jurisdiction, the remainder of the rules and regulations shall not be affected thereby. The invalidity of any section or sections or parts of any section or sections shall not affect the validity of the remainder of these rules and regulations.

History

• Periodic Refile — effective from 2022-01-04 to current
• Amendment — effective from 2018-06-01 to 01/04/2022
• Adoption — effective from 2015-02-15 to 06/01/2018
• Periodic Refile — effective from 2001-12-13 to 02/15/2015

830-RICR-10-15-3 Community Septic System Loan Policies and Procedures

830-RICR-10-15-3 § 3.1 Purpose:

These Loan Policies and Procedures of Rhode Island Infrastructure Bank (the "Bank") have been established to govern the lending activities between the Bank and local governmental units in the state of Rhode Island in connection with the Community Septic System Loan Program ("CSSLP") under and pursuant to the State Water Pollution Control Revolving Funds, 33 U.S.C. §§ 1381 to 1388 and R.I. Gen. Laws Chapter 46-12.2 as amended.

History

• Periodic Refile — effective from 2022-01-04 to current
• Amendment — effective from 2018-06-01 to 01/04/2022
• Adoption — effective from 2015-01-05 to 06/01/2018
• Amendment — effective from 2005-05-03 to 01/05/2015
• Amendment — effective from 2002-01-02 to 05/03/2005

830-RICR-10-15-3 § 3.2 Definitions:

Except as otherwise defined herein, the words and phrases used within these Loan Policies and Procedures have the same meaning as the words and phrases have in R.I. Gen. Laws Chapter 46-12.2 as amended.

History

• Periodic Refile — effective from 2022-01-04 to current
• Amendment — effective from 2018-06-01 to 01/04/2022
• Adoption — effective from 2015-01-05 to 06/01/2018
• Amendment — effective from 2005-05-03 to 01/05/2015
• Amendment — effective from 2002-01-02 to 05/03/2005

830-RICR-10-15-3 § 3.3 Financial Assistance:

A.These Loan Policies and Procedures govern the provision of financial assistance to local governmental units to administer a program of septic system repair and cesspool closure in their community. The CSSLP is a source of funds to provide subsequent loans to property owners for the repair or replacement of failed or failing septic systems or substandard systems and cesspool closures within areas identified in the local government unit's On-site Wastewater Management Plan.

B.The Bank and the local governmental unit will establish a relationship to be evidenced by a loan agreement to provide financing for repair or replacement of failed, failing or substandard systems in that community. Rhode Island Housing and Mortgage Financing Corporation (RI Housing), or any other entity as selected by the Bank, or its successor, will be the loan servicer (the "Servicer") on the subsequent property owners loans. The Servicer will:

1.accept applications from property owners;

2.coordinate payments to septic system installers/cesspool closure contractors/property owners;

3.collect repayments from property owners;

4.credit the property owner repayments to the principal repayment obligation of the local governmental unit; and

5.make monthly reports to both the Bank and the local governmental unit.

History

• Periodic Refile — effective from 2022-01-04 to current
• Amendment — effective from 2018-06-01 to 01/04/2022
• Adoption — effective from 2015-01-05 to 06/01/2018
• Amendment — effective from 2005-05-03 to 01/05/2015
• Amendment — effective from 2002-01-02 to 05/03/2005

830-RICR-10-15-3 § 3.4 Loan Application:

A.Requests for financing under the Community Septic System Loan Program should be submitted in writing by the chief executive officer or other authorized officer of the local governmental unit to the Executive Director of the Bank. The written request shall include:

1.A projection of the estimated need for repair or replacement of failed or failing system or cesspool as contemplated by the Community's program and identified in the On-site Wastewater Management Plan prepared by the local governmental unit.

2.Indication of approval of the local governmental unit program for on-site septic system repair or replacement or cesspool closure as outlined in its On-site Wastewater Management Plan by the Department of Environmental Management (DEM).

3.A description of the dedicated source of loan security in the event of property owner loan default or non-payment, i.e., pledge of general revenues from property taxes of cities and towns, property liens, or other source available to the local governmental unit and deemed appropriate by the Bank.

4.A description of the overall operation of the local governmental unit, including but not limited to the most recent annual report or audited financials, with an emphasis on

a.legal structure;

b.management;

c.sources of revenues;

d.operating expenses;

e.operating surpluses or deficits;

f.actual results versus budget; and

g.sources of financial liquidity.

(1)The most recent annual report or audited financials may be submitted in satisfaction of all or any part of this item.

5.Legal authority or authorities to borrow from the Community Septic System Loan Program.

6.Other information reasonably requested by the Bank.

History

• Periodic Refile — effective from 2022-01-04 to current
• Amendment — effective from 2018-06-01 to 01/04/2022
• Adoption — effective from 2015-01-05 to 06/01/2018
• Amendment — effective from 2005-05-03 to 01/05/2015
• Amendment — effective from 2002-01-02 to 05/03/2005

830-RICR-10-15-3 § 3.5 Loan Approval Process:

Subject to availability of Bank funds and to prioritization by DEM of programs as outlined in the communities' On-site Wastewater Management Plans, loan applications will be considered for approval by the Bank for any eligible local governmental unit. The local governmental unit will provide a general obligation pledge, note in fully marketable form, or other obligation deemed appropriate by the Bank to ensure repayment of the CSSLP loan. A credit review of the local governmental unit and report by the Executive Director will be taken into consideration by the Bank.

History

• Periodic Refile — effective from 2022-01-04 to current
• Amendment — effective from 2018-06-01 to 01/04/2022
• Adoption — effective from 2015-01-05 to 06/01/2018
• Amendment — effective from 2005-05-03 to 01/05/2015
• Amendment — effective from 2002-01-02 to 05/03/2005

830-RICR-10-15-3 § 3.6 Terms and Conditions:

A.The property owner repayment stream will be credited towards the community's repayment obligation of the CSSLP loan.

B.Rate - The CSSLP loan to the local governmental unit from the Bank will be at a rate of zero percent (0%).The subsequent loans to property owners will carry an interest rate of zero percent (0%) and service fees equivalent to 1% of the outstanding balance of the property owners loan to be distributed as follows:

1.Servicer 0.5% Property Owner Loan Service Fee

2.Bank 0.5% Community Loan Service Fee

3.1.0% Total CSSLP Fees

a.In addition to the service fees set forth above, the property owner shall also pay a loan origination fee (Loan Origination Fee) at the time of closing to the Servicer in the amount of three hundred dollars ($300.00).

b.(CSSLP loan rates and fees are subject to periodic changes as per § 3.10 of this Part.)

C.Community Fees - The local governmental unit will be responsible for its own out of pocket closing costs, i.e. borrower's counsel fees and financial advisor fees.

D.Amortization - The loan repayments from the property owners will provide the repayments to the Bank. As the primary borrower, the local government unit is responsible for any shortfall or default in the repayments from the property owners. Amortization on the local governmental unit's loan will begin on the first day of the quarter after the loan closing and on a quarterly basis thereafter. The Servicer will collect payments from the property owners and make payments to the Bank on behalf of the local governmental unit.

E.Prepayments - The loan may be prepaid by the borrower at any time but may be subject to a prepayment penalty based on the cost of reinvesting the prepayment, the cost of prepaying outstanding bonds of the Bank, or any other negative financial impact to the Bank.

F.Security - Loans will have a pledge of

1.general revenues; and/or

2.may be secured by any other assets and upon such other terms and conditions as the Bank deems appropriate to protect the interests of the other participants in the loan programs of the Bank; bondholders; other creditors of the Bank; bondholders; or the finances of the Bank.

a.The obligations of the Borrower may be subject to and dependent upon appropriations being made by the Borrower for such purposes.

G.Loan Advances - The local governmental unit will indicate in written form an estimate of its yearly requirement for septic system or substandard system repairs or cesspool closures. As loans to property owners are originated, the Bank will advance the necessary amount for disbursement for approved project costs. RI Housing will act as paying agent on behalf of the local governmental unit for payments to contractors/property owners for approved project costs.

H.Community Specific Criteria for Property Owners Loans - The community may apply specific property owner loan criteria such as; number of estimates needed from licensed septic system installers or cesspool closure contractors; maximum number of housing units per structure allowed access to CSSLP; owner-non-owner-occupied borrowers; whether inhabitants of areas planned for sewer extension are eligible; and other such specific requirements. The community may not raise or lower the current property owner CSSLP fee of 1% but may combine the CSSLP with other sources of money so as to provide a greater dollar amount available for loans or to provide a greater economic incentive for property owners to repair or replace the failed systems. Any additional criteria applied by the local governmental unit cannot negate or otherwise overrule any federal and state laws and regulations which apply to the CSSLP.

I.Ineligible Project Costs - Eligibility shall be subject to any restrictions mandated by the EPA.

J.On-site Wastewater Management Plan/Certificate of Approval - Prior to entering into a loan agreement the Borrower must have a Certificate of Approval ("CA") from the RIDEM for the Borrower's On-site Wastewater Management Plan.

History

• Periodic Refile — effective from 2022-01-04 to current
• Amendment — effective from 2018-06-01 to 01/04/2022
• Adoption — effective from 2015-01-05 to 06/01/2018
• Amendment — effective from 2005-05-03 to 01/05/2015
• Amendment — effective from 2002-01-02 to 05/03/2005

830-RICR-10-15-3 § 3.7 Reporting Requirements:

A.Local governmental units will be required to provide information to the Bank during the life of the loan, including but not limited to:

1.A record of the number and type of repaired or replaced septic systems and cesspool closures funded by this program.

2.A copy of its Annual Audited Financial Statements in accordance with Generally Accepted Government Accounting Standards annually within nine months days of end of fiscal year.

3.Copies of reports submitted to RIDEM, the Environmental Protection Agency (EPA) and any other regulatory agency relating to the septic systems or cesspools financed by the Bank or the operation thereof, simultaneously with each submission.

4.Other information or reports as and when the Bank may reasonably require.

History

• Periodic Refile — effective from 2022-01-04 to current
• Amendment — effective from 2018-06-01 to 01/04/2022
• Adoption — effective from 2015-01-05 to 06/01/2018
• Amendment — effective from 2005-05-03 to 01/05/2015
• Amendment — effective from 2002-01-02 to 05/03/2005

830-RICR-10-15-3 § 3.8 Loan Documents:

The terms and conditions of each loan will be evidenced by an agreement outlining the specific terms and conditions of the loan and such agreement will be accompanied by an opinion of counsel, as required by the Bank enabling act.

History

• Periodic Refile — effective from 2022-01-04 to current
• Amendment — effective from 2018-06-01 to 01/04/2022
• Adoption — effective from 2015-01-05 to 06/01/2018
• Amendment — effective from 2005-05-03 to 01/05/2015
• Amendment — effective from 2002-01-02 to 05/03/2005

830-RICR-10-15-3 § 3.9 Compliance with State and Federal Law:

Recipients (the Borrower) of loans must comply with all applicable state, Federal, Bank and municipal laws, ordinances, rules and/or regulations.

History

• Periodic Refile — effective from 2022-01-04 to current
• Amendment — effective from 2018-06-01 to 01/04/2022
• Adoption — effective from 2015-01-05 to 06/01/2018
• Amendment — effective from 2005-05-03 to 01/05/2015
• Amendment — effective from 2002-01-02 to 05/03/2005

830-RICR-10-15-3 § 3.10 Modifications:

Where deemed appropriate by the Bank, waiver or variation of any provisions herein may be made or additional requirements may be added.

History

• Periodic Refile — effective from 2022-01-04 to current
• Amendment — effective from 2018-06-01 to 01/04/2022
• Adoption — effective from 2015-01-05 to 06/01/2018
• Amendment — effective from 2005-05-03 to 01/05/2015
• Amendment — effective from 2002-01-02 to 05/03/2005

830-RICR-10-15-3 § 3.11 Severability

If any provision of these rules and regulations or the application thereof to any local government unit, person, or corporation is held invalid by a court of competent jurisdiction, the remainder of the rules and regulations shall not be affected thereby. The invalidity of any section or sections or parts of any section or sections shall not affect the validity of the remainder of these rules and regulations.

History

• Periodic Refile — effective from 2022-01-04 to current
• Amendment — effective from 2018-06-01 to 01/04/2022
• Adoption — effective from 2015-01-05 to 06/01/2018
• Amendment — effective from 2005-05-03 to 01/05/2015
• Amendment — effective from 2002-01-02 to 05/03/2005

830-RICR-10-15-4 Sewer Tie-In Loan Fund Policies and Procedures

830-RICR-10-15-4 § 4.1 Purpose:

These Loan Policies and Procedures of Rhode Island Infrastructure Bank (the "Bank") have been established to govern the lending activities between the Bank and local governmental units in the state of Rhode Island in connection with the Sewer Tie-In Loan Fund ("STILF") under and pursuant to R.I. Gen. Laws Chapter 46-12.2 as amended.

History

• Periodic Refile — effective from 2022-01-04 to current
• Technical Revision — effective from 2018-06-01 to 01/04/2022
• Amendment — effective from 2018-06-01 to 06/01/2018
• Adoption — effective from 2015-01-05 to 06/01/2018
• Technical Revision — effective from 2007-10-09 to 01/05/2015
• Adoption — effective from 2007-10-03 to 10/09/2007

830-RICR-10-15-4 § 4.2 Definitions:

Except as otherwise defined herein, the words and phrases used within these Loan Policies and Procedures have the same meaning as the words and phrases have in R.I. Gen. Laws Chapter 46-12.2 as amended.

History

• Periodic Refile — effective from 2022-01-04 to current
• Technical Revision — effective from 2018-06-01 to 01/04/2022
• Amendment — effective from 2018-06-01 to 06/01/2018
• Adoption — effective from 2015-01-05 to 06/01/2018
• Technical Revision — effective from 2007-10-09 to 01/05/2015
• Adoption — effective from 2007-10-03 to 10/09/2007

830-RICR-10-15-4 § 4.3 Financial Assistance:

A.These Loan Policies and Procedures govern the provision of financial assistance to local governmental units to administer a program of sewer tie-ins for existing properties in their community. The STILF is a source of funds to provide subsequent loans to property owners to connect their properties to the local sewer system and abandon their individual septic systems or cesspools.

B.The Bank and the local governmental unit will establish a relationship to be evidenced by a loan agreement to provide financing for property owners within the local governmental unit to connect their properties to the local sewer system and abandon their individual septic systems or cesspools. Rhode Island Housing and Mortgage Financing Corporation (RI Housing), or any other entity as selected by the Bank, or its successor, will be the loan servicer (the "Servicer") on the subsequent property owners loans. The Servicer will:

1.accept applications from property owners;

2.coordinate payments to sewer tie-in contractors/vendors;

3.collect repayments from property owners;

4.credit the property owners' repayments to the principal repayment obligation of the local governmental unit; and

5.make monthly reports to both the Bank and the local governmental unit.

History

• Periodic Refile — effective from 2022-01-04 to current
• Technical Revision — effective from 2018-06-01 to 01/04/2022
• Amendment — effective from 2018-06-01 to 06/01/2018
• Adoption — effective from 2015-01-05 to 06/01/2018
• Technical Revision — effective from 2007-10-09 to 01/05/2015
• Adoption — effective from 2007-10-03 to 10/09/2007

830-RICR-10-15-4 § 4.4 Loan Application:

A.Request for financing under the Sewer Tie-In Loan Fund should be submitted in writing by the chief executive officer or other authorized officer of the local governmental unit to the Executive Director of the Bank. The written request shall include:

1.A projection of the estimated need for property owners within the local governmental unit to connect into the local sewer system and abandon their individual septic systems or cesspools as detailed in the local governmental unit's Sewer Tie-In Program Plan as approved by the Department of Environmental Management.

2.Indication of approval of the local governmental unit's Sewer Tie-In Program by the Department of Environmental Management (DEM), including the listing of the local governmental unit's STILF program on the most current DEM Project Priority List, for financing from the Bank to establish a Sewer Tie-In Loan Program within the local governmental unit.

3.A description of the dedicated source of loan security in the event of property owner loan default or non-payment, i.e., pledge of general revenues from property taxes of cities and towns, property liens, or other source available to the local governmental unit and deemed appropriate by the Bank.

4.A description of the overall operation of the local governmental unit, including but not limited to the most recent annual report or audited financials, with an emphasis on

a.legal structure;

b.management;

c.sources of revenues;

d.operating expenses;

e.operating surpluses or deficits;

f.actual results versus budget; and

g.sources of financial liquidity.

5.Legal authority or authorities to borrow from the Sewer Tie-In Loan Fund.

6.Other information reasonably requested by the Bank.

History

• Periodic Refile — effective from 2022-01-04 to current
• Technical Revision — effective from 2018-06-01 to 01/04/2022
• Amendment — effective from 2018-06-01 to 06/01/2018
• Adoption — effective from 2015-01-05 to 06/01/2018
• Technical Revision — effective from 2007-10-09 to 01/05/2015
• Adoption — effective from 2007-10-03 to 10/09/2007

830-RICR-10-15-4 § 4.5 Loan Approval Process:

Subject to availability of Bank funds and to prioritization by DEM of projects as listed in the most current DEM Project Priority List, as well as an indication of approval for financing from the Bank to establish a Sewer Tie-In Loan Program within the local governmental unit, loan applications will be considered for approval by the Bank for any eligible local governmental unit STILF Loan. The Bank shall make a determination on each loan application from an eligible local governmental unit. The local governmental unit will provide a general obligation pledge, promissory note in fully marketable form, or other obligation deemed appropriate by the Bank to ensure repayment of the STILF loan. A credit review of the local governmental unit and report by the Executive Director will be taken into consideration by the Bank.

History

• Periodic Refile — effective from 2022-01-04 to current
• Technical Revision — effective from 2018-06-01 to 01/04/2022
• Amendment — effective from 2018-06-01 to 06/01/2018
• Adoption — effective from 2015-01-05 to 06/01/2018
• Technical Revision — effective from 2007-10-09 to 01/05/2015
• Adoption — effective from 2007-10-03 to 10/09/2007

830-RICR-10-15-4 § 4.6 Terms and Conditions:

A.The property owner repayment stream will be credited towards the community's repayment obligation of the STILF loan.

B.Rate - The STILF loan to the local governmental unit from the Bank will be at a rate of zero percent (0%). The subsequent loans to property owners will carry an interest rate of zero percent (0%) and service fees equivalent to one percent (1%) of the outstanding balance of the property owners loan to be distributed as follows:

1.Servicer 0.5% Property Owner Loan Service Fee

2.Bank 0.5% Community Loan Service Fee

3.1.0% Total STILF Fees

a.In addition to the service fees set forth above, the property owner shall also pay a loan origination fee (Loan Origination Fee) at the time of closing to the Servicer in the amount of three hundred dollars ($300.00).

b.(STILF loan rates and fees are subject to periodic changes as per §4.10 of this Part.)

C.Community Fees - The local governmental unit will be responsible for its own out of pocket closing costs, i.e. borrower's counsel fees and financial advisor fees.

D.Amortization - The loan repayments from the property owners will provide the t repayments to the Bank. As the primary borrower, the local government unit is responsible for any shortfall or default in the repayments from the property owners. Amortization on the local governmental unit's loan will begin on the first day of the quarter after the loan closing and on a quarterly basis thereafter. The Servicer will collect payments from the property owners and make payments to the Bank on behalf of the local governmental unit.

E.Prepayments - The loan may be prepaid by the borrower at any time but may be subject to a prepayment penalty based on the cost of reinvesting the prepayment, the cost of prepaying outstanding bonds of the Bank, or any other negative financial impact to the Bank.

F.Security - Loans may have a pledge of

1.general revenues; and/or

2.may be secured by any other assets and upon such other terms and conditions as the Bank deems appropriate to protect the interest of the other participants in the loan programs of the Bank, other creditors of the Bank, bondholders, or the finances of the Bank, or

3.The obligations of the Borrowers may be subject to and dependent upon appropriations being made by the Borrower for such purposes.

G.Loan Advances - The local governmental unit will indicate in written form an estimate of its yearly requirement for sewer tie-in and abandonment of septic system loans. As loans to property owners are originated, the Bank will advance the necessary amount for disbursement for approved project costs. RI Housing will act as paying agent on behalf of the local governmental unit for payments to contractors/property owners for approved project costs.

H.Community Specific Criteria for Property Owner Loans - The community may apply specific property owner loan criteria such as; number of estimates needed from licensed sewer-tie in contractors; maximum number of housing units per structure allowed access to the STILF; owner-non-owner-occupied borrowers; and other such specific requirements. The community may not raise or lower the current property owner STILF fee of 1% but may combine the STILF with other sources of money so as to provide a greater dollar amount available for loans or to provide a greater economic incentive for property owners to tie-in to the local sewer system and abandon their septic system. All additional criteria must be detailed in the community's Sewer Tie-In Program Plan. Any additional criteria applied by the local governmental unit cannot negate or otherwise overrule any federal and state laws and regulations which apply to the STILF.

I.Ineligible Project Costs - Eligibility shall be subject to any restrictions mandated by the EPA.

J.Certificate of Approval - Prior to disbursement of funds by the Bank, the Bank must be in receipt of the Certificate of Approval by the RIDEM of the Borrower's proposed project(s) pursuant to R.I. Gen. Laws Chapter 46-12.2 as amended and rules and regulations promulgated thereunder.

History

• Periodic Refile — effective from 2022-01-04 to current
• Technical Revision — effective from 2018-06-01 to 01/04/2022
• Amendment — effective from 2018-06-01 to 06/01/2018
• Adoption — effective from 2015-01-05 to 06/01/2018
• Technical Revision — effective from 2007-10-09 to 01/05/2015
• Adoption — effective from 2007-10-03 to 10/09/2007

830-RICR-10-15-4 § 4.7 Reporting Requirements:

A.Local governmental units will be required to provide information to the Bank during the life of the loan, including but not limited to:

1.A record of the number and type of sewer tie-ins and abandonment of septic systems or cesspools funded by this program.

2.A copy of its Annual Audited Financial Statements in accordance with Generally Accepted Government Accounting Standards annually within nine months of end of fiscal year.

3.Copies of reports submitted to RIDEM, the Environmental Protection Agency (EPA) and any other regulatory agency relating to the sewer tie-ins financed by the Bank or the operation thereof, simultaneously with each submission.

4.Other information or reports as and when the Bank may reasonably require.

History

• Periodic Refile — effective from 2022-01-04 to current
• Technical Revision — effective from 2018-06-01 to 01/04/2022
• Amendment — effective from 2018-06-01 to 06/01/2018
• Adoption — effective from 2015-01-05 to 06/01/2018
• Technical Revision — effective from 2007-10-09 to 01/05/2015
• Adoption — effective from 2007-10-03 to 10/09/2007

830-RICR-10-15-4 § 4.8 Loan Documents:

The terms and conditions of each loan will be evidenced by an agreement outlining the specific terms and conditions of the loan and such agreement will be accompanied by an opinion of counsel, as required by the Bank enabling act.

History

• Periodic Refile — effective from 2022-01-04 to current
• Technical Revision — effective from 2018-06-01 to 01/04/2022
• Amendment — effective from 2018-06-01 to 06/01/2018
• Adoption — effective from 2015-01-05 to 06/01/2018
• Technical Revision — effective from 2007-10-09 to 01/05/2015
• Adoption — effective from 2007-10-03 to 10/09/2007

830-RICR-10-15-4 § 4.9 Compliance with State and Federal Law:

Recipients (the Borrower) of loans must comply with all applicable state and Federal, Bank and municipal laws, ordinances, rules and/or regulations.

History

• Periodic Refile — effective from 2022-01-04 to current
• Technical Revision — effective from 2018-06-01 to 01/04/2022
• Amendment — effective from 2018-06-01 to 06/01/2018
• Adoption — effective from 2015-01-05 to 06/01/2018
• Technical Revision — effective from 2007-10-09 to 01/05/2015
• Adoption — effective from 2007-10-03 to 10/09/2007

830-RICR-10-15-4 § 4.10 Modifications:

Where deemed appropriate by the Bank, waiver or variation of any provisions herein may be made or additional requirements may be added.

History

• Periodic Refile — effective from 2022-01-04 to current
• Technical Revision — effective from 2018-06-01 to 01/04/2022
• Amendment — effective from 2018-06-01 to 06/01/2018
• Adoption — effective from 2015-01-05 to 06/01/2018
• Technical Revision — effective from 2007-10-09 to 01/05/2015
• Adoption — effective from 2007-10-03 to 10/09/2007

830-RICR-10-15-4 § 4.11 Severability:

If any provision of these rules and regulations or the application thereof to any local government unit, person, or corporation is held invalid by a court of competent jurisdiction, the remainder of the rules and regulations shall not be affected thereby. The invalidity of any section or sections or parts of any section or sections shall not affect the validity of the remainder of these rules and regulations.

History

• Periodic Refile — effective from 2022-01-04 to current
• Technical Revision — effective from 2018-06-01 to 01/04/2022
• Amendment — effective from 2018-06-01 to 06/01/2018
• Adoption — effective from 2015-01-05 to 06/01/2018
• Technical Revision — effective from 2007-10-09 to 01/05/2015
• Adoption — effective from 2007-10-03 to 10/09/2007

Subchapter 25 Environment

830-RICR-10-25-1 Policies and Procedures for the Brownfields Revolving Loan Fund

830-RICR-10-25-1 § 1.1 Purpose and Authority

The within Policies and Procedures of Rhode Island Infrastructure Bank (the “Bank”) have been established to govern the financing activities of the Brownfields Revolving Loan Fund in accordance with R.I. Gen. Laws Chapter 23-19.16 (the “Brownfields RLF Act”).

History

• Periodic Refile — effective from 2022-01-04 to current
• Technical Revision — effective from 2017-04-29 to 01/04/2022 Supersedes: 830-RICR-10-00-5

830-RICR-10-25-1 § 1.2 Definitions

The words and phrases used within these Policies and Procedures have the same meaning as the words and phrases in R.I. Gen. Laws Chapter 23-19.16.

History

• Periodic Refile — effective from 2022-01-04 to current
• Technical Revision — effective from 2017-04-29 to 01/04/2022 Supersedes: 830-RICR-10-00-5

830-RICR-10-25-1 § 1.3 Financial Assistance

The objective of these Policies and Procedures is to provide the terms of financing available to eligible borrowers for the remediation of brownfield sites. Financial assistance will be determined on a project by project basis depending on the risk and term of the loan.

History

• Periodic Refile — effective from 2022-01-04 to current
• Technical Revision — effective from 2017-04-29 to 01/04/2022 Supersedes: 830-RICR-10-00-5

830-RICR-10-25-1 § 1.4 Application for Financing

A.Requests for financing should be submitted in writing by the Chief Executive Officer of the eligible borrower to the Executive Director of the Bank. The written request must include:

1.A description of the project(s) to be financed with the projected construction and completion schedule.

2.A description of the source of repayment (i.e. general revenues of cities and towns; appropriations pledges; site revenues; redevelopment financing; or other repayment source that is secured by the Borrower).

3.A description of the overall operations of the eligible borrower with an emphasis on:

a.Legal structure;

b.Management;

c.Sources of revenues;

d.Operating expenses;

e.Operating surpluses or deficits;

f.Actual results versus budget; and

g.Sources of financial liquidity.

4.Legal authority or authorities to construct, finance and operate the project.

5.Audited Financial Statements in accordance with General Accepted Accounting Standards for the previous five years.

6.Financial and demographic information, if a governmental unit.

7.Copies of contracts with the vendors that will complete site remediation, if available.

History

• Periodic Refile — effective from 2022-01-04 to current
• Technical Revision — effective from 2017-04-29 to 01/04/2022 Supersedes: 830-RICR-10-00-5

830-RICR-10-25-1 § 1.5 Approval Process

A.In accordance with the Brownfields RLF Act, approvals for financial assistance are subject to the project(s) being listed on the project priority list established by the Rhode Island Department of Environmental Management. Projects not listed on the project priority list shall not be eligible for financial assistance from the Brownfields Revolving Loan Fund. The Bank shall use the project priority list to determine the order in which financial assistance shall be awarded. The Bank will conduct a financial analysis for each application which will take into consideration factors including, but not limited to:

1.Sources of revenue and financial liquidity;

2.Historical and projected financial operating results;

3.Present and future debt service requirements;

4.Impact of dedicated user fees and/or general revenues;

5.Cost of the project and completion schedule;

6.Long term capital replacement planning;

7.Socioeconomic conditions and trends;

8.Management qualifications and experience;

9.Redevelopment status of property in question; and

10.Effects of legal structure and any regulator control.

B.Based on the above factors, and any other factors deemed relevant by the Bank, the Board of Directors shall consider an application for approval. If an application is approved for funding from the Brownfields Revolving Loan Fund, a commitment letter will be issued to the applicant for their acceptance.

History

• Periodic Refile — effective from 2022-01-04 to current
• Technical Revision — effective from 2017-04-29 to 01/04/2022 Supersedes: 830-RICR-10-00-5

830-RICR-10-25-1 § 1.6 Terms and Conditions

A.Interest/Pricing: Financial assistance may include market interest rates, below market interest rates, interest rate subsidies or other credit enhancements which reduce the cost of financing eligible projects. Interest rates will be determined by the Board of Directors on a project by project basis depending on the risk and term of the loan. Interest is to be calculated on the basis of a 360 day year and twelve 30 day months on the outstanding loan balance, paid semi-annually on March 1st and September 1st and may be capitalized during construction

B.Fees: The Bank may charge an Origination Fee at the time of loan closing. All out of pocket closing costs (i.e. Borrower’s cost of issuance, Bank cost of issuance, Bank underwriting costs and any other closing costs) will be paid by the Borrower. The Bank will also charge an annual Service Fee payable semi-annually at each interest payment date. A late payment fee will be charged for every 15 days that a payment is late.

C.Amortization: Amortization will begin within one year after completion of construction and one year after closing for a refinancing. Principal payments will be made annually on September 1st. An alternative repayment schedule may be proposed by the Bank after consultation with the Borrower.

D.Term/Final Maturity: The length of the term of financial assistance awarded shall be determined by the Bank in consultation with the Borrower.

E.Prepayments: The loan may be prepaid by the Borrower at any time, but may be subject to a prepayment penalty based on the cost of reinvesting the prepayment, the cost of prepaying outstanding bonds of the Bank or any other negative financial impact to the Bank.

F.Security: Loans will have a pledge of:

1.For governmental borrowers:

a.An appropriations pledge;

b.A general revenues pledge; or

c.May be secured by any other assets or pledges of the Borrower and upon such other terms and conditions as the Bank deems appropriate to protect the interests of the other participants in the Brownfields Revolving Loan Fund of the Bank; bondholders; other creditors of the Bank; or the finances of the Bank.

2.For all other borrowers:

a.May be secured by any assets or pledges of the Borrower and upon such other terms and conditions as the Bank deems appropriate to protect the interests of the other participants in the Brownfields Revolving Loan Fund of the Bank; bondholders; other creditors of the Bank; or the finances of the Bank.

G.Construction Progress Payments: Progress payments for each construction project will be made through the Construction Proceeds Fund (CPF). Loan proceeds will be transferred monthly from the CPF for each borrower based upon approved Requisition Forms submitted to the Bank. Upon receipt of the Requisition Form, the Bank will verify:

1.The costs requisitioned for payment are in connection with a project listed on the project priority list established by the Department of Environmental Management;

2.The vendor is identified in the contract; and

3.There is sufficient availability in the CPF to make the payment.

H.Payments will be made directly to the vendor and/or the Borrower for reimbursements by the Bank, and a “paid” stamped copy of the Requisition Form will be sent to the Borrower. The Department of Environmental Management will perform periodic project inspections to:

1.Monitor construction progress;

2.Verify eligibility of construction costs under the program; and

3.Ensure construction is in conformity with Plans and Specifications.

I.The Department of Environmental Management will provide a copy of the inspection report to the Bank. Any adverse conditions will be reported to the Bank who may suspend further payments until the adverse conditions have been rectified. The Department of Environmental Management will perform a final project inspection before the final payment is made by the Bank.

History

• Periodic Refile — effective from 2022-01-04 to current
• Technical Revision — effective from 2017-04-29 to 01/04/2022 Supersedes: 830-RICR-10-00-5

830-RICR-10-25-1 § 1.7 Reporting Requirements

A.Borrowers will be required to provide information to the Bank during the life of the loan including, but not limited to, the following:

1.A copy of the Borrower’s Annual Audited Finance Statements in accordance with Generally Accepted Accounting Standards, annually within 180 days of the end of the fiscal year;

2.A copy of the Borrower’s annual budget, within fifteen days of its adoption;

3.An annual schedule of current and projected short term and long term debt service;

4.An annual schedule of Capital Replacement Reserves;

5.Copies of reports submitted to the Rhode Island Department of Environmental Management, and any other regulatory agency relating to the projects financed;

6.During the construction period, an accounting of the monthly disbursements relating to the project; and

7.Other information or reports that the Bank deems appropriate.

History

• Periodic Refile — effective from 2022-01-04 to current
• Technical Revision — effective from 2017-04-29 to 01/04/2022 Supersedes: 830-RICR-10-00-5

830-RICR-10-25-1 § 1.8 Loan/Financing Agreements

There will be a Loan/Financing Agreement for each approved loan outlining the terms and conditions of the loan.

History

• Periodic Refile — effective from 2022-01-04 to current
• Technical Revision — effective from 2017-04-29 to 01/04/2022 Supersedes: 830-RICR-10-00-5

830-RICR-10-25-1 § 1.9 Compliance with Federal, State, and Local Law

Recipients of loans must comply with all applicable federal, state, and local laws and regulations.

History

• Periodic Refile — effective from 2022-01-04 to current
• Technical Revision — effective from 2017-04-29 to 01/04/2022 Supersedes: 830-RICR-10-00-5

830-RICR-10-25-1 § 1.10 Modifications

Where deemed appropriate by the Bank, waiver or variation of any provisions herein may be made or additional requirements may be added.

History

• Periodic Refile — effective from 2022-01-04 to current
• Technical Revision — effective from 2017-04-29 to 01/04/2022 Supersedes: 830-RICR-10-00-5