Financial And Management Capability Analysis

No loans will be awarded for projects unless the applicant has demonstrated and certified that it has the legal, technical, managerial, and financial capabilities provided in these rules to ensure construction, operation and maintenance, and to repay principal, interest, and any fees that may be due on a loan. (7-1-26) 01. Information Needed. Applicants are to submit a completed application for financial and management capability analysis as outlined in Section 040. (7-1-26) 02. Incorporated Nonprofit Applicants. (3-24-22) a. In addition to all other information required to be submitted by these rules, an incorporated nonprofit applicant must demonstrate to the satisfaction of the Department by its articles of incorporation and/or bylaws, that the corporation is: (7-1-26) i. Nonprofit and lawfully incorporated pursuant to Chapter 3, Title 30, Idaho Code; (7-1-26) ii. Authorized to incur indebtedness to construct, improve or repair wastewater or drinking water facilities and/or implement water pollution control nonpoint source projects; (7-1-26) iii. Authorized to secure indebtedness by pledging corporation assets, including any revenues raised through a user charge system; (7-1-26) iv. Capable of raising revenues sufficient to repay a loan; and (7-1-26) v. Exists either perpetually or for a period long enough to repay a project loan. (7-1-26) b. The Department may impose conditions on the making of a facility loan or water pollution control nonpoint source project to an incorporated nonprofit applicant that are necessary to carry out the provisions of these rules and Chapters 1, 36, and or 76, Title 39, Idaho Code. (7-1-26) 03. Cost Allocation. An applicant proposing a wastewater, drinking water or nonpoint source project designed to serve two (2) or more entities must show how the costs will be allocated among the participating entities. Such applicants must provide an executed intermunicipal service agreement which, at a minimum, incorporates the following information: (3-24-22) a. The basis upon which the costs are allocated; (3-24-22) b. The formula by which the costs are allocated; and (3-24-22) c. The manner in which the cost allocation system will be implemented. (3-24-22) IDAHO ADMINISTRATIVE CODE IDAPA 58.01.12 – Rules for Administration of Department of Environmental Quality Wastewater & Drinking Water Loan Funds Section 020 Page 7 04. Waivers. The provision in Subsection 010.03 may be waived by the Department if the applicant can demonstrate: (7-1-26) a. Such an agreement is already in place; (3-24-22) b. There is documentation of a service relationship in the absence of a formal agreement; or(3-24-22) c. An applicant exhibits sufficient financial strength to continue the project if one (1) or more of the applicants fails to participate. (3-24-22) 011. – 019. (RESERVED)