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Water Resource Information System

Kentucky Unbridled Spirit (TM)

Fund C Governmental Agencies Program

Information regarding Fund C Governmental Agencies Progam.

Loan Term Sheet

INTEREST RATE:

3% (Rates will be reviewed at least annually). The Fund C program will make loans from accumulated program assets while reserving the right to issue bonds to increase program capacity.  Should the Authority decide to issue bonds the interest rate offered to borrowers of loans funded with bond proceeds will be revised to reflect the cost of funds.

REPAYMENT PERIOD:

Within 20 years of project completion commencing within one year of project completion, dependent of the useful life of the project and source of repayment.  Thirty year loans may be available for distressed systems.

APPLICATION FEE:

None

LOAN SERVICE FEE:

A fee of 0.20% of the unpaid loan balance paid annually.

FINANCING EXPENSES:

Should the Authority decide to issue bonds the interest rate offered to borrowers of loans funded with bond proceeds will be revised to reflect the cost of funds.  A pro-rata share of the cost of issuance will be passed through to the projects.

LOAN PAYMENT FREQUENCY:

Monthly payments beginning June 1 or December 1 following the final draw under the loan.  payments will be set-up on auto-debit from a designated account held by the Borrower.

DEBT SERVICE
RESERVE:

None

OPERATIONS & MAINTENANCE RESERVE:

Dependent of the useful life of the assets being funded.

ELIGIBILITY:

Eligible projects are those permitted by KRS224A.011(16). The applicant must be a governmental agency and the project must be financially feasible as determined by KIA staff.

PRIORITY OF LOAN AWARDS:

First-come, first-served, as long as funds are available. Interested parties must complete and submit a Letter of Intent form to KIA, to be considered for funding. Requests are reviewed and determinations made based on project readiness and funding availability.  If approved, borrowers are invited to submit a loan application.

LOAN APPLICATION
PROCESS:

Obtain and file application document with Kentucky Infrastructure Authority.  Prove economic feasibility to KIA staff.  Obtain loan commitment from KIA board.  Obtain construction bids, adopt adequate user charge rates, and pre-close KIA loan.  Draw loan funds as project expenses are incurred.  Close loan upon essential project completion, adjusting loan amount and fixing repayment schedule.

 

Contact Person
 

Donna McNeil
502-892-3496
Email

 

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Last Updated 7/21/2017