SUBCHAPTER 59C ‑ SMALL WATERSHED PROGRAM
SECTION .0100 ‑ WATERSHED LOANS
02 NCAC 59C .0101 WATERSHED REVOLVING LOANS
(a) Eligibility. The commission may make loans to local
sponsors of projects organized or in the process of organizing as:
(1) a county watershed improvement program
under G.S. 139‑39:
(A) board of county commissioners; or
(B) watershed improvement commission appointed by county
(2) a drainage district under G.S. 156‑54.
Loan eligibility accrues only after the applicant forms or
begins the process of forming a legal organization, presents evidence of such
formation or formation process to the commission and attains commission
(b) Prior Approval. The governing body of the sponsoring
district or districts may approve a loan application by adopting an appropriate
resolution at a regular meeting attended by a majority of the members, by
entering the resolution in the official minutes of the meeting, and by
attaching a certified copy to the loan application.
(c) Application. The application for a loan shall be
(1) a surety bond executed in favor of the
commission in an amount equal to the face value of the loan;
(2) a statement of assurance from the board or
boards of county commissioners that the commission shall not suffer loss in the
event the local sponsors fail to meet the terms of the loan;
(3) a statement of assurance from other legal
body, agency, or corporation, satisfactory to the commission, that the
commission shall not suffer loss in the event the local sponsors fail to meet
the terms of the loan.
(d) Use of Funds. Principal expenses for which borrowed
funds may be used include:
(1) land classification;
(2) preparation of assessment rolls;
(3) legal and engineering fees;
(4) court costs;
(5) securing easements or other interests in
(6) compensating landowners for damages caused
by removal or by replacement of existing facilities.
(e) Loan Costs (To Borrower). The commission shall not
make interest or loan charges for the term of the loan specified in the
contract, but may assess a penalty charge for late payment, calculated from the
contract repayment date to the actual repayment date, at a rate of 1 percent of
the outstanding balance for each month or fraction of a month.
(f) Amount of Loan. The commission shall determine the
amount of the loan and the length of the contract based on the merits of each
individual application. In order to realize maximum benefits from the fifty
thousand dollars ($50,000) available for loan purposes, prospective borrowers
shall give careful consideration to the following points as they prepare their
(1) the minimum amount necessary to meet the
immediate needs of the district;
(2) actual need; and
(3) the shortest possible repayment schedule.
(g) Policy. The commission shall manage these funds, and
the watershed sponsors shall cooperate in sharing these funds, in order to
render the greatest possible benefit to the state conservation program.
History Note: Authority G.S. 106-840; 139‑4(d);
Eff. February 1, 1976;
Amended Eff. August 1, 1982; December 5, 1980;
Transferred from 15A NCAC 06C .0101 Eff. May 1, 2012;
Pursuant to G.S. 150B-21.3A, rule is necessary without
substantive public interest Eff. September 19, 2015.