The Department of Transportation shall use the State Infrastructure Bank Revolving Fund for the following purposes:

1. To make a loan to an eligible entity if:

a.the loan application, project and planning documents have been approved by the Department or the Transportation Commission,

b.the loan is made at or below market interest rates,

c.principal and interest payments will begin no later than the month following the completion of the project,

d.the State Infrastructure Bank Revolving Fund will be credited with all payments of principal and interest on all loans,

e.the applicant demonstrates to the satisfaction of the Department the financial capability to assure sufficient revenues to pay debt service,

f.the recipient of the loan establishes a dedicated source of revenue for payment of debt service for the loan, and

g.the recipient agrees to maintain financial records in accordance with governmental accounting standards, to conduct an annual audit of the financial records relating to the construction project, and to submit the audit report to the Department on a scheduled annual basis;

2. To guarantee or purchase insurance for eligible entities if the guarantee or insurance would improve access to market credit or reduce interest rates;

3. To provide loan guarantees to similar revolving loan accounts or funds established by eligible entities;

4. To administer the State Infrastructure Bank Revolving Fund pursuant to the provisions in this act. All funds to be utilized for administrative costs from the State Infrastructure Bank Revolving Fund shall be subject to annual appropriation by the Legislature; and

5. For such other purpose or in such manner as is determined by the Commission or the Director to be an appropriate use of the State Infrastructure Bank Revolving Fund and which has been specifically approved by the Federal Highway Administration pursuant to the National Highway System Designation Act of 1995 and the Transportation Infrastructure Finance and Innovation Act of 1998.

Added by Laws 1998, c. 292, § 4, eff. Nov. 1, 1998. Amended by Laws 2012, c. 356, § 4, eff. Nov. 1, 2012.