603 KAR 7:010. Loans.

 

      RELATES TO: KRS Chapter 96A

      STATUTORY AUTHORITY: KRS 67.080, 67.083, 96A.095(3), 96A.120(1)(a)

      NECESSITY, FUNCTION, AND CONFORMITY: The purpose of this administrative regulation is to establish guidelines for administering the Mass Transportation Operating Loan Fund.

 

      Section 1. "Mass Transportation Operating Loan Fund" means a procedure enabling the Transportation Cabinet to make loans to public transportation agencies to assist those agencies in the operation of their transportation systems. Funding for such loans is provided from the General Assembly appropriation for public transportation assistance.

 

      Section 2. The Transportation Cabinet shall make loans from the mass transportation operating loan fund to public transportation agencies based upon an application submitted to the Secretary of the Transportation Cabinet.

 

      Section 3. The following information shall be included in the application:

      (1) Name and address of the applicant;

      (2) Amount of loan funds requested;

      (3) Purpose for which the loan is to be utilized;

      (4) A financial plan documenting the request;

      (5) Provisions for loan security and repayment schedule.

 

      Section 4. The rate of interest to be charged on a mass transportation operating fund loan shall be fixed by the Secretary of the Transportation Cabinet.

 

      Section 5. (1) An agreement shall be entered into between the Transportation Cabinet and the public transportation agency which shall set forth and contain the following terms and conditions:

      (a) The amount of the loan;

      (b) Provisions for repayment of the principal of the loan and interest thereon to the Transportation Cabinet;

      (c) Provisions for loan security;

      (d) Provisions that the loan shall be used by the public transportation agency. (Recodified from 604 KAR 1:010, eff. 6-29-84; Am. 13 Ky.R. 2090; eff. 7-2-87.)