| (a) Release of funds for planning, design and permits.
Prior to the release of funds for planning, design, and permits, the
rural community shall submit for approval to the executive administrator
the following documents:
(1) a statement as to sufficiency of funds to complete
the activity;
(2) certified copies of each contract under which revenues
for repayment of the rural community's debt will accrue;
(3) executed consultant contracts relating to services
provided for planning, design, and/or permits;
(4) unless funds are released under the pre-design
funding option, evidence that the requirements and regulations of
all identified local, state, and federal agencies having jurisdiction
have been met, including but not limited to permits and authorizations;
and
(5) other such instruments or documents as the board
or executive administrator may require.
(b) Pre-design funding. The funds needed for the total
estimated cost of the engineering planning, and design cost if the
engineering feasibility report required under §363.13 of this
title (relating to Preliminary Engineering Feasibility Data) has been
approved, the costs associated with the loan, and any associated capitalized
interest will be released to the loan recipient and the remaining
funds will be escrowed to the escrow agent until all applicable requirements
in subsections (a) and (c) of this section have been met.
(c) Release of funds for building purposes. Prior to
the release of funds for building purposes, the rural community shall
submit for approval to the executive administrator the following documents:
(1) a tabulation of all bids received and an explanation
for any rejected bids or otherwise disqualified bidders;
(2) one executed original copy of each construction
contract the effectiveness and validity of which is contingent upon
the receipt of board funds;
(3) evidence that the necessary acquisitions of land,
leases, easements and rights-of-way have been completed or that the
applicant has the legal authority necessary to complete the acquisitions;
(4) a statement as to sufficiency of funds to complete
the project;
(5) certified copies of each contract under which revenues
to the project will accrue;
(6) evidence that all requirements and regulations
of all identified local, state, and federal agencies having jurisdiction
have been met, including permits and authorizations; and
(7) other such instruments or documents as the board
or executive administrator may require.
(d) Escrow of funds. At the time of loan closing, the
executive administrator may require the escrow of project funds related
to building purposes when the rural community has not met the requirements
of subsection (c) of this section.
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