Section 12. Financing Approval Requirements

Based on the evaluation factors set forth in 7.29.4.9, the Board may award Financial Assistance to the Applicant provided the following requirements are satisfied: A. In determining the qualification for Financial Assistance, the Board may consider the ability of the Eligible Entity to secure financing from other sources and the costs of the Financial Assistance. B. In approving a Contract for Services, the Board will consider the recommendations of the Finance Committee. C. In approving a loan application, the Board will review the Applicant’s ability to repay the loan extended. The Board will establish a base interest rate for loans. A portion or all of the loan repayment may be offset by a contract for service. D. In approving an application for debt financing, the Board will find that the useful life of the Capital Project will meet or exceed the final maturity of loans made or bonds purchased or issued by the Board and must meet standards for reasonable costs set by the Board. E. To be eligible for a loan, the Applicant shall agree to properly maintain separate Capital Project accounts in accordance with generally accepted accounting principles and to conduct an annual audit of the Capital Project's financial records during the term of the loan. F. In order to receive Financial Assistance, the Applicant shall provide a written opinion, signed by an attorney, that the Eligible Entity has or will acquire proper title, easements and rights-of-way to the property upon or through which the Capital Project is to be constructed or extended. G. Any contract or subcontract executed for the completion of any Capital Project shall contain a provision that there shall be no discrimination against any employee or Applicant for employment because of race, color, creed, sex, religion, sexual preference, ancestry or national origin. H and rights-of-way to the property upon or through which the Capital Project is to be constructed or extended. G. Any contract or subcontract executed for the completion of any Capital Project shall contain a provision that there shall be no discrimination against any employee or Applicant for employment because of race, color, creed, sex, religion, sexual preference, ancestry or national origin. H. In order to receive Financial Assistance, the Applicant shall require any contractor of a Capital Project to post a performance and payment bond in accordance with the requirements of Section 13-4-18 NMSA 1978 and its subsequent amendments and successor provisions. I. In addition to the foregoing, the Eligible Entity shall satisfy any other requirements as may be determined by the Authority. J. Reserved [7.29.4.12 NMAC – Rp 7 NMAC 29.4.12, 12/28/01] 7.29.4.13 RECONSIDERATION A. An Applicant may request reconsideration of a contrary decision by the Department as to whether it is an Eligible Entity as defined by the Act. Notice must be given to the Department in writing within ten (10) working days of receipt of the Department's decision as to eligibility. B. An Applicant may request reconsideration of a decision by the Board denying funding to an Eligible Entity by notifying the Authority in writing within forty-five days of the date on which notice of an adverse decision is given by the Authority to an Applicant. Notice is deemed to be given on the fifth business day following the date on which written notice is mailed to the Applicant by the Authority by certified U.S. mail. A request for reconsideration not timely or properly made will be barred. The Authority's Executive Director will promptly review each timely request for reconsideration and will recommend, at the next regular meeting of the Board, action to be taken by the Board on the fifth business day following the date on which written notice is mailed to the Applicant by the Authority by certified U.S. mail. A request for reconsideration not timely or properly made will be barred. The Authority's Executive Director will promptly review each timely request for reconsideration and will recommend, at the next regular meeting of the Board, action to be taken by the Board. The Board will review and take action on the request for reconsideration and will notify the Applicant of the Board's decision, in writing, within five working days of the Board's decision. The decision of the Board is final. [7.29.4.13 NMAC – Rp 7 NMAC 29.4.13, 12/28/01] 7.29.4.14 FINANCIAL ASSISTANCE AGREEMENT 7.29.4 NMAC -5- A. The Authority and the Eligible Entity will enter into an Agreement to establish the terms and conditions of Financial Assistance from the Authority including, as appropriate, a Contract for Services. The Agreement will include the terms of repayment and sanctions available to the Authority in the event of a default. The Authority will diligently monitor terms of the Agreement and enforce all terms and conditions thereof, including prompt notice and collection. The Department will monitor the performance of an Eligible Entity under any Contract for Services and report to the Authority quarterly on the contractor’s efforts to provide free or reduced fee Primary Care services for Sick and Medically Indigent persons. The Authority will take actions as necessary to ensure loan repayment and the integrity of the Fund. B. The interest on any Financial Assistance extended shall be determined by the Board based on the cost of funds and ability of the Eligible Entity to pay. The interest rate shall not change during the term of the Financial Assistance unless refinanced. C. The Agreement will contain provisions which require Financial Assistance recipients to comply with all applicable federal, state and local laws and regulations. D any Financial Assistance extended shall be determined by the Board based on the cost of funds and ability of the Eligible Entity to pay. The interest rate shall not change during the term of the Financial Assistance unless refinanced. C. The Agreement will contain provisions which require Financial Assistance recipients to comply with all applicable federal, state and local laws and regulations. D. In the event of default by the qualified entity, the Authority may enforce its rights by suit or mandamus and may utilize all other available remedies under state and applicable federal law. E. If land is to be purchased with a loan from the Fund, the Authority shall ensure that the title is merchantable and free and clear from liens or encumbrances. The state shall also require that a title insurance policy insuring the state's interest as a first lien be obtained as a condition of making the loan. The Eligible Entity shall not encumber the land purchased by granting or creating any additional security interest in the land while any amount of the loan is unpaid. The Eligible Entity shall pay immediately any encumbrance or lien against the land that attaches while any amount of the loan is unpaid. No contracts for services shall be made to purchase land. F. If an Eligible Entity that has received a loan or Contract for Services for a Capital Project ceases to maintain its nonprofit status or ceases to deliver Primary Care services at the site of the Capital Project for twelve consecutive months, the state shall have the following remedies at its option, subject to liens having preference: (1) order liquidation of the premises and recover any loan balance or amount due on the contract and any interest previously forgiven on the loan, imputed at the prevailing interest rate at the time of the loan; or (2) foreclose on the property and convert it to state use or transfer title to another Eligible Entity. G have the following remedies at its option, subject to liens having preference: (1) order liquidation of the premises and recover any loan balance or amount due on the contract and any interest previously forgiven on the loan, imputed at the prevailing interest rate at the time of the loan; or (2) foreclose on the property and convert it to state use or transfer title to another Eligible Entity. G. If an Eligible Entity has received a loan or contract for service for a Capital Project, the loan or contract for service may be renegotiated if the entity is still eligible but has had a change in financial status. [7.29.4.14 NMAC – Rp 7 NMAC 29.4.14, 12/28/01] 7.29.4.15 ADMINISTRATION OF THE PRIMARY CARE CAPITAL FUND A. The Fund shall be administered by the Authority as a separate account in the State Treasury, but may consist of such sub accounts as the Authority deems necessary to carry out the purposes of the Fund. B. Money from repayments of loans or payments on securities held by the Authority for Capital Projects authorized specifically by law shall be deposited in the Fund. The Fund shall also consist of any other money appropriated, distributed or otherwise allocated to the Fund for the purpose of financing Capital Projects authorized specifically by law. C. The Authority shall adopt a uniform accounting system for the Fund and related accounts and sub- accounts established by the Authority, based on generally accepted accounting principles.