Rates and terms—WS loans and WS advances and RCD loans.

CFR · 2024-01-01 · US · Title 7

(a) (1) For loans, unless otherwise required by State law, interest will accrue from date of check delivery where Form RD 440-22, “Promissory Note (Association Organization),” is used. Where bonds are used interest will accrue from the applicable dates recorded on the bonds. Where multiple loan disbursements are used interest will accrue from date of check. (2) Interest on an advance for future water supply will begin as required by State law, when water is first used from the future water storage capacity installed with advance, or ten years from the scheduled date of the completion of the facility, whichever date is the earlier. (3) Interest on an advance for preservation of sites will begin on the date the advance is closed. (b) (1) The statutory limitation on the sponsoring local organization's borrowing authority. (2) Fifty (50) years for WS loans and WS advances and 30 years for RCD loans from the date when the principal benefits from the WS works of improvement or RCD measure being financed first become available. (3) The useful life of the WS works of improvement or RCD measure being financed with loan or advance funds. (c) (1) Payments need to be delayed until the receipt of income from taxes or other revenues is enough to meet a regular installment but not exceed: (i) The completion date of the facility; or (ii) The date when benefits from the facility begins; but (iii) In no case for more than 5 years for other than future water supply. (2) Payments will depend on

official document · source cfr-2024 · id 7:§ 1781.8