Conditions

(1) Security. The Borrower may be required to pledge additional security to ensure that funds are sufficient to pay monthly payments and expenses as detailed in the Loan Agreement. Forms of security may include but are not limited to: (a) Users’ fees and charges; (b) Ad valorem taxes; and (c) Unobligated State-Shared Taxes. (2) Borrower Deliverables and Reporting Requirements. (a) Within thirty (30) days of a request, the Borrower shall provide any supporting financial documentation requested by the Agency. (b) The Borrower shall submit quarterly progress reports on each Project to the Agency. (c) The Borrower shall submit to the Agency all required permits, clearances, and approvals within thirty (30) days of receipt of such documents. (3) Borrower Responsibilities. (a) The Borrower shall comply with all federal, state, and local laws and regulations. (b) The Borrower shall effectively communicate with the Agency during all stages of the Project; specifically, any delays in the completion of the Project. (c) The Borrower shall be responsible for any additional costs required for Project completion. (d) The Borrower shall maintain a current FEMA-approved Hazard Mitigation Plan. (4) Ineligible Expenses. No portion of the Loan Monies, shall be used towards the following expenses: (a) Office equipment, software, insurance, taxes (excluding sales tax), fees for attorneys or legal advice, staff time for application submittal, costs incurred for activities outside of Project, labor, overtime rates, and training; RESILIENT TENNESSEE REVOLVING LOAN FUND ACT CHAPTER 1450-01 (b) Fees such as those incurred for state or local permits unless approved by the Agency; or (c) Expenses incurred by the Borrower prior to the start of the Loan Agreement and after the Disbursement period has expired. (5) Procurement. All procurement activity shall comply with all federal and state procurement standards. (6) Files and Records. The Borrower shall maintain all pertinent records and evidence relevant to the Project and Loan Agreement. (a) Upon reasonable notice, the Borrower must provide access to the Agency and/or the Division to all documentation. (b) All records shall be maintained by the Borrower in accordance with 2 CFR 200.334 and T.C.A. §§ 10-7-702, et seq. (7) Programmatic and Financial Audits. The Agency reserves the right to conduct programmatic and financial audits of the Project. (8) Change Orders. Changes in the Project work that are consistent with the objectives of the Project and that are within the scope and funding level of the Loan Agreement do not require the execution of a formal Loan amendment. However, such changes will need approval from the STORM Act Team.