§ 6-09-49 — Infrastructure revolving loan fund - Continuing appropriation

North Dakota § 6-09-49

• Jurisdiction: North Dakota
• Title 6: Banks and Banking
• Ch. 6-09: The Bank of North Dakota

Text

1. The infrastructure revolving loan fund is a special fund in the state treasury from which
the Bank of North Dakota shall provide loans to political subdivisions, the Garrison
Diversion Conservancy District, and the Lake Agassiz water authority for essential
infrastructure projects. The Bank shall administer the infrastructure revolving loan fund.
The maximum term of a loan made under this section is the lesser of thirty years or the
useful life of the project. A loan made from the fund under this section must have an
interest rate that does not exceed two percent per year.
2. For purposes of this section, "essential infrastructure projects" means capital
construction projects to construct new infrastructure or replace existing infrastructure,
which provide the fixed installations necessary for the function of a political
subdivision. Capital construction projects exclude routine maintenance and repair
projects, but include the following:
a. The Red River valley water supply project;
b. Water treatment plants;
c. Wastewater treatment plants;
d. Sewerlines and waterlines, including lift stations and pumping systems;
e. Storm water infrastructure, including curb and gutter construction;
f. Water storage systems, including dams, water tanks, and water towers;
g. Road and bridge infrastructure, including paved and unpaved roads and bridges;
h. Airport infrastructure;
i. Electricity transmission infrastructure;
j. Natural gas transmission infrastructure;
k. Communications infrastructure;
l. Emergency services facilities, excluding hospitals;
m. Critical political subdivision buildings and infrastructure; and
n. Infrastructure required to service recreation and community facilities, not
including the construction of a building or recreational amenity.
3. In processing political subdivision loan applications under this section, the Bank shall
calculate the maximum outstanding loan amount per qualified applicant. A qualified
applicant under this section may have a maximum combined total of twenty million
dollars in outstanding loans under this section and section 6-09-49.1. The Bank shall
consider the applicant's ability to repay the loan when processing the application and
shall issue loans only to applicants that provide reasonable assurance of sufficient
future income to repay the loan.
4. The Bank shall deposit in the infrastructure revolving loan fund all payments of interest
and principal paid under loans made from the infrastructure revolving loan fund. The
Bank may use a portion of the interest paid on the outstanding loans as a servicing fee
to pay for administrative costs which may not exceed one-half of one percent of the
amount of the interest payment. All moneys transferred to the fund, interest upon
moneys in the fund, and payments to the fund of principal and interest are
appropriated to the Bank on a continuing basis for administrative costs and for loan
disbursement according to this section.
5. The Bank may adopt policies and establish guidelines to administer this loan program
in accordance with the provisions of this section and to supplement and leverage the
funds in the infrastructure revolving loan fund. Additionally, the Bank may adopt
policies allowing participation by local financial institutions.
6. If a political subdivision applies for a loan under this section for a county road or bridge
project, the department of transportation shall review and approve the project before
the Bank may issue a loan. If a political subdivision applies for a loan under this
section for a water-related project, the state water commission shall review and
approve the project before the Bank may issue a loan. The department of
transportation and state water commission may develop policies for reviewing and
approving projects under this section.