65-7404. Loan transactions and guarantees; eligibility and maximum terms.
65-7404
65-7404. Loan transactions and guarantees;eligibility and maximum terms.(a) Each agreement entered into by the secretary toguaranteeagainst default on a loan transaction shall be backed by the primary caresafety net capital loan guarantee fund and shall receive prior approval by theprimary care safety net clinic loan guarantee review committee establishedunderK.S.A. 2009 Supp.65-7405, and amendments thereto.
(b) Each loan transaction eligible for a guarantee under this act shall befor renovation, construction, acquisition, modernization, leaseholdimprovement or equipping of a primary care safety net clinic. Eligible costsmay include land and building purchases, renovation and new construction costs,equipment and installation costs, pre-development costs that may becapitalized, financing, capitalized interest during construction, limitedworking capital during a start-up phase and consultant fees which do notinclude staff costs.
(c) The aggregate principal amount of outstanding loan guarantees for anysingle borrowing organization shall not exceed $3,000,000. The aggregateoutstanding amount of all loan guarantees for borrowing organizations,under this act shall not exceed $15,000,000at any time.
(d) Eligible tax-exempt bonds or conventional loans may be guaranteed up to100% under this act, subject to the other provisions of this act and the rulesand regulations adopted by the secretary of health and environment therefor.Each eligible loan transaction shall require an equity investment by theborrowing organization and shall have a loan-to-value ratio of at least 66%.
(e) The maximum term for an eligible loan transaction under this act formachinery or equipment shall be 10 years. The maximum term for an eligible loantransaction under this act for renovation, remodeling or leasehold improvementsshall be 10 years. The maximum term for an eligible loan transaction under thisact for new construction or land acquisition shall be 25 years.
History: L. 2007, ch. 177, § 8; May 17.