Effective 28 Aug 1995

640.660. Loan repayment. — 1. Each applicant to which a loan has been made under sections 640.651 to 640.686 shall repay such loan, with interest. The rate of interest shall be the rate required by the funding source. The number, amounts and timing of the payments shall be as determined by the department.

2. Any applicant which receives a loan or financial assistance through the provisions of sections 640.651 to 640.686 shall annually budget an amount which is at least sufficient to make the payments required under this section.

3. A school or local government shall not raise the funds needed to make the loan payment by the levy of additional taxes. The loan payments shall be derived from energy cost savings resulting from the project. In the event that energy cost savings resulting from the project fail to equal or exceed the amount of the payment, the school or local government and the department may renegotiate the terms of the loan or financial assistance in such a manner as to assure that the actual energy cost savings resulting from the project are applied to the loan or other financial assistance.

4. If a school district fails to remit a payment to the department in accordance with this section within sixty days of the due date of such payment, the department shall notify the department of elementary and secondary education to deduct such payment amount from the next regular apportionment of state funds to that district. That amount shall then immediately be deposited in the energy set-aside fund.

5. If a local government fails to remit a payment to the department in accordance with this section within sixty days of the due date of such payment, the department shall notify the director of the department of revenue to deduct such payment amount from the next regular apportionment of local sales tax distributions to that jurisdiction. Such amount shall then immediately be deposited in the energy set-aside fund.

6. All applicants having received loans pursuant to sections 640.651 to 640.686 shall remit the payments required by subsection 1 of this section to the department or such other entity as may be directed by the department. The department or such other entity shall immediately deposit such payments in the energy set-aside loan fund.

­­--------

(L. 1995 H.B. 414)