General

General. The cumulative maximum loan amount for any eligible local unit of government during a calendar year is $1,000,000. The terms of any loan must be reasonable, and shall not exceed 15 years. The loan amount allowed will be determined by the Applicant's ability to repay the loan within acceptable terms. The rate of interest on a RAIL loan shall be one percent (1%) below the Federal Reserve Discount Rate at the time of loan approval. The Applicant will be required to expend all RAIL funds within one year from the date of loan approval, unless a waiver is granted upon good cause shown. Projects shall not exceed two years. If the funds are not expended within two years, the loan will be adjusted to the actual disbursements and the remaining funds to be drawn will be recalled.