(a) The term of the loan shall be determined by SECO based on the calculated simple payback period of the overall project from the Utility Assessment Report.     
      (b) SECO shall set the interest rates in an amount sufficient to recover the cost of administering the program.     
      (c) Loan payout and repayment.      
        (1) Loan proceeds may be used to pay for the entire cost of the retrofit project, including the cost of the energy assessment report, engineering design, construction, equipment acquisition and installation, maintenance, and metering and monitoring.       
        (2) Loan funds shall be disbursed on a reimbursement basis after the borrower provides acceptable supporting documentation that SECO requires.       
        (3) A state agency may use general revenue funds that are appropriated for utilities to make loan payments as stipulated in Government Code, Chapter 2305.       
        (4) The borrower shall repay the principal of and interest on the loan in accordance with the Loan Repayment Schedule that the borrower will receive upon project completion and acceptance by SECO.       
        (5) Frequency of payments shall be no greater than quarterly, with quarterly payment dates based on the state fiscal year.       
        (6) The borrower may repay loans early without penalty.       
        (7) No loans will be forgiven.       
      (d) Loan recipient responsibilities (project monitoring).      
        (1) Loan recipients shall provide the LoanSTAR Program with the access and information that is necessary to monitor the performance of the retrofits, as stated in the loan agreement.       
        (2) Loan recipients shall be responsible for submission of all reports that the LoanSTAR Program requests as outlined in the loan agreement.       
        (3) Compliance with applicable local, state, and federal procurement guidelines and procedures is the responsibility of the loan recipient.       
      (e) Title to equipment.      
        (1) Title to all equipment that is acquired under this program will vest in the borrower, in accordance with applicable state statutes.       
        (2) Disposition and inventory of any equipment shall be done in accordance with state statutes and regulations.       
     Source Note:        The provisions of this §19.45 adopted to be effective August 13, 2002, 27 TexReg 7175; amended to be effective March 11, 2010, 35 TexReg 2017; amended to be effective April 7, 2016, 41 TexReg 2497