Money in the fund shall be used by the division, as prioritized by the director, only to:
Terms Used In Utah Code 53-2a-608
Declared disaster: means one or more events:
(i)
within the state;
(ii)
that occur within a limited period of time;
(iii)
that involve:
(A)
a significant number of persons being at risk of bodily harm, sickness, or death; or
(B)
a significant portion of real property at risk of loss;
(iv)
that are sudden in nature and generally occur less frequently than every three years; and
(v)
that results in:
(A)
the president of the United States declaring an emergency or major disaster in the state;
(B)
the governor declaring a state of emergency under 2; or
(C)
the chief executive officer of a local government declaring a local emergency under 2. See Utah Code 53-2a-602
Director: means the division director appointed under Section 53-2a-103 or the director's designee. See Utah Code 53-2a-102
Disaster: means an event that:
(a)
causes, or threatens to cause, loss of life, human suffering, public or private property damage, or economic or social disruption resulting from attack, internal disturbance, natural phenomena, or technological hazard; and
(b)
requires resources that are beyond the scope of local agencies in routine responses to emergencies and accidents and may be of a magnitude or involve unusual circumstances that require response by government, not-for-profit, or private entities. See Utah Code 53-2a-102
Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
Local government: means :
(i)
a county;
(ii)
a city or town; or
(iii)
a special district or special service district that:
(A)
operates a water system;
(B)
provides transportation service;
(C)
provides, operates, and maintains correctional and rehabilitative facilities and programs for municipal, state, and other detainees and prisoners;
(D)
provides consolidated 911 and emergency dispatch service;
State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
(a)
provide loans to local government entities for:
(i)
the costs incurred by a local government entity for providing emergency disaster services as defined in Section 53-2a-602; or
(ii)
providing any state or local matching funds to secure federal funds or grants related to a declared disaster, as defined in Section 53-2a-602;
(b)
pay the Division of Finance for the costs of administering the fund, providing loans, and obtaining repayments of loans; and
(c)
provide funds to state agencies for the costs of responding to a declared disaster.
(2)
The division shall establish the terms and conditions of the loans and the repayment schedule consistent with the following criteria:
(a)
the interest rate charged and the maximum payback period on all loans shall be:
(i)
the state’s prime interest rate at the time of loan closing, plus zero percent, with a maximum payback period of 10 years if the applicant has reserved an average of 90% to 100% of the amount authorized in Section 53-2a-605 over the previous five fiscal years;
(ii)
the state’s prime interest rate at the time of loan closing, plus 2%, with a maximum payback period of five years if the applicant has reserved an average of 70% up to 90% of the amount authorized in Section 53-2a-605 over the previous five fiscal years; or
(iii)
the state’s prime interest rate at the time of loan closing, plus 4%, with a maximum payback period of three years if the applicant has reserved an average of 50% up to 70% of the amount authorized in Section 53-2a-605 over the previous five fiscal years; and
(b)
the division may not authorize a loan from this fund on any terms or conditions to local government entities that have reserved an average of less than 50% of the amount authorized in Section 53-2a-605 over the previous five fiscal years.
(3)
If the division receives multiple loan applications concurrently, priority shall be given to applicants based on the extent of their participation in the reserve account authorized in Section 53-2a-605.
