Sec. 2602.4. Direct financings

(a) The corporation may or, if so directed by the commissioner, shall provide CWSRF assistance for a project pursuant to PAL section 1285-j(4) if and to the extent the corporation may determine that it is unable, or that it is impracticable to finance all or a portion of a project as a leveraged financing.

(b) The corporation may provide a direct financing at a reduced interest rate to an ESP only if:

(1) the project is listed on the IUP's multi-year PPL, and it has received a project priority score high enough to place it above any funding line on the IUP's annual PPL, except as otherwise permitted by the act;

(2) except as otherwise permitted herein, project planning has been completed and the recipient has submitted an approved engineering report;

(3) the environmental review process has been completed;

(4) any necessary special improvement districts have been formed; and

(5) construction of the project has not been completed.

(c) Interest rates for direct financings shall be determined by the corporation as an interest rate or rates no higher than the market rate of interest.