Funding Criteria and Credit Review Process

Section 1100.817  Funding Criteria and Credit Review Process In addition to the loan application review criteria developed by OSFM (see 41 Ill. Adm. Code 290.55), the credit review process and funding criteria approved by the Authority for this Program are as follows: a)         The Authority's Executive Director , or their designee will review submitted application documentation to ensure that all documents necessary for the Authority to initiate its credit and due diligence review are present (see 41 Ill. Adm. Code 290.40). b)         If an applicant is delinquent on a previous loan funded by the Authority, the applicant shall be automatically disqualified from funding under this Program until any loan repayment delinquency has been cured. c)         The applicant must demonstrate its ability to meet at least one of the following minimum debt service coverage requirements: 1)         General fund revenues or specified revenue stream:  1.25x; or 2)         State intercept revenues:  1.25x; or 3)         Direct property levy for the loan:  1.00x. d)         The applicant must submit supporting documentation for the source of repayment as follows: 1)         For general fund or specified revenues, submit a current board-approved budget that reflects the identified revenue source and amount (or, as applicable, beginning in the first fiscal year for which a scheduled loan payment will be due) ; or 2)         For direct property tax levy (i.e., general obligation), submit a copy of the levy and the ordinance authorizing the levy prior to the funding date or in advance of the fiscal year during which the initial loan payment will be due . e)         If the applicant's repayment source is property tax receipts, the applicant's actual property tax collections over the past three fiscal years must exceed 95% of the total possible tax collection. f)         The applicant must provide a resolution or ordinance approved by the applicant's governing board that authorizes approval of the following : 1)         Loan Application; 2)         Loan Agreement; 3)         Sources and amounts of repayment; 4) Consent to a State intercept of state-sourced revenues, as applicable ; and 5)         Lien on the fire truck or brush truck purchased, if required by the Authority. g)         Each loan must be secured by the applicant's: 1)         General funds or, if available, a direct property tax levy or State revenue intercept; and 2) If the Authority in its sole discretion determines it is necessary, possession of the title to the property or an Authority lien on the equipment purchased.