§ 33:1419.6 — Loan conditions and repayment

Louisiana § 33:1419.6

• Jurisdiction: Louisiana
• Title 33: Municipalities and Parishes

Text

§1419.6. Loan conditions and repayment
A. Upon approval of an application by the Department of Conservation and Energy,
the department may lend amounts on deposit in the alternative fuels loan fund to a local
governing authority to finance all or a portion of the cost of a fleet conversion. The loans are
subject to the borrower's compliance with the conditions of the loan, as well as any
applicable rules or regulations promulgated by the department.
B. Prior to making a loan, the Department of Conservation and Energy shall
determine that the clean fuel vehicles will be fully insured and that the local governing
authority has the ability to repay the loan and may require a dedicated source of repayment
and impose additional requirements as the department deems necessary.
C. Each loan, unless prepaid, shall be payable subject to the loan agreement, with
principal and interest payments commencing not later than one year after the completion date
of the project for which the loan was made, and each loan shall be fully amortized not later
than ten years after the completion date.
D.(1) The interest rate on each loan shall be established by the secretary of the
Department of Conservation and Energy, subject to any limitations provided for federal
assistance under a state transportation plan or other limitations required for the use of other
federal funds by applicable federal law. Criteria to be considered in the development of the
interest rate shall include but are not limited to administrative costs of the program, program
priorities established by the department, the creditworthiness of the applicant, the cost of
bonds issued to provide loan funding, and the long-term viability of the alternative fuels loan
fund.
(2) The interest rate for a loan may include any additional rate that the Department
of Conservation and Energy considers reasonable or necessary to provide a reserve for the
repayment of the loan. The additional rate may be fixed or variable, may be calculated
according to a formula, and may differ from the rate established for any other loans.
E. Each loan shall be evidenced by a bond, note, or other evidence of indebtedness
of the borrower, in a form prescribed or approved by the Department of Conservation and
Energy. The evidences of indebtedness shall be consistent with the provisions of this
Subpart and, if federal funds are used, consistent with the terms of the appropriate federal act
and are not required to be identical for all loans.

Legislative History

Acts 2010, No. 118, §1, eff. July 1, 2010; Acts 2023, No. 150, §8, eff. Jan. 10, 2024.