§ 6-09-52 — Bulk propane storage tank revolving loan fund - Continuing appropriation - Audit and costs of administration

Audit and costs of administration.
1. The bulk propane storage tank revolving loan fund is a special fund in the state
treasury from which the Bank of North Dakota shall provide loans to propane retailers
to purchase and install storage containers to be used for the bulk storage of propane.
The Bank shall administer the propane storage tank revolving loan fund.
2. To be eligible for this loan program, the applicant must be a propane retailer
conducting business in the state and submit an application to the Bank which must:
a. Detail the proposed project, including the location of the storage container within
the state;
b. Demonstrate the need and viability of the project; and
c. Include financial information as the Bank may determine appropriate.
3. 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. A loan provided under this section:
a. May not exceed the lesser of five hundred thousand dollars or eighty-five percent
of the actual cost of the project;
b. Must have an interest rate equal to two percent; and
c. Must provide a repayment schedule of no longer than fifteen years.
5. In processing 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 total of five hundred thousand dollars in outstanding
loans under this section.
6. The Bank shall deposit in the bulk propane storage tank revolving loan fund all
payments of interest and principal paid under loans made from the bulk propane
storage tank 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. All money 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.
7. The Bank may adopt policies and establish guidelines to administer this loan program
in accordance with this section and to supplement and leverage funds in the bulk
propane storage tank revolving loan fund. Additionally, the Bank may adopt policies
allowing participation by local financial institutions.
8. The bulk propane storage tank revolving loan fund must be audited in accordance with
section 6-09-29 or shall engage with an independent public auditor to perform the
necessary procedure to ensure compliance with section 6-09-29. The cost of the audit
and any other actual costs incurred by the Bank on behalf of the fund must be paid
from the fund.