11-7-106 - Loans and grants Repayment Proceeds Application requirements Financial statements of applicant Terms of agreements with board.

11-7-106. Loans and grants Repayment Proceeds Application requirements Financial statements of applicant Terms of agreements with board.

(a)  The board shall make grants or loans pursuant to § 11-7-105, only after the recipient entity has entered into an agreement with the trust fund, on the terms and conditions specified by the board. After approving a grant or loan, the board may assist the grantee in carrying out the purposes of the grant.

(b)  When awarding grants or making loans pursuant to this section, the board may require repayment of those funds on the terms and conditions the board deems appropriate. Proceeds from the repayment or reimbursement of amounts granted or loaned by the board shall be deposited in the fund.

(c)  Any entity applying for a grant or loan from the trust fund to acquire an interest in real property shall specify the following in the grant or loan application:

     (1)  The intended use of the property;

     (2)  The intended ultimate owner of the property;

     (3)  The entity that will be responsible for managing the property;

     (4)  The funding source for the cost of ongoing management; and

     (5)  Any other information required by the board.

(d)  Any entity applying for a grant or loan from the trust fund to acquire an interest in real property shall provide a copy of the organization's most recent audited annual financial statements. Such statements must have been prepared within two (2) years of the date of the grant application.

(e)  In order to receive a grant from the trust fund to assist in the acquisition of any interest in real property, a public agency or nonprofit organization must enter into an agreement with the board. The terms of such agreement shall include the following:

     (1)  The terms under which the interest in real property is ultimately acquired shall be subject to the board's approval;

     (2)  The interest in real property acquired under the grant shall not be used as security for a debt, unless the board approves the transaction;

     (3)  The board shall take appropriate action to protect the public interest in the acquisition, by ensuring that the land will be permanently conserved. In meeting this obligation, the board shall employ appropriate means, including, but not limited to, the acquisition of conservation easements or reversionary interests;

     (4)  Any subsequent transfer of an interest in the real property acquired pursuant to this chapter shall be subject to approval of the board, and a new agreement, sufficient to protect the public interest, shall be entered into between the board and the transferee;

     (5)  A description of the level of use that will be allowed on the property. In awarding grants pursuant to this chapter, the board shall take appropriate action to ensure the preservation of a public benefit that is consistent with the public interest in the acquisition;

     (6)  A requirement that the public agency or nonprofit organization provide to the state an independent appraisal of the fair market value of the interest in real property to be acquired; and

     (7)  A requirement that the public agency or nonprofit organization provide to the state a copy of a financial audit of the agency or organization that has been prepared by an independent public accountant for the most recent completed fiscal year. In addition, the agency or organization shall be required to provide the state with such an audit for subsequent fiscal years during the term of the grant agreement.

[Acts 2005, ch. 444, § 2.]