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

commissioners.

(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

approval.

(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

accompanied by:

(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

land; and

(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

loan applications:

(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.