1. State Infrastructure Bank
New Mexico Department of Transportation

2. Take Your Money and Run! State Infrastructure Bank
Pilot program was enacted by Congress under Section 350 of the National Highway System Designation Act of 1995.
New Mexico 2 NMAC effective May 31, 1999

3. State Infrastructure Bank - SIB
Qualified Entities?
any public entity such as political subdivisions, state agencies, boards or commissions, regional transit boards, and port authorities. Publicly dedicated roads and transportation or infrastructure facility projects are eligible but must have a local government sponsor to receive funding. The loan must go to a public entity and be pledged to be paid back with public funds.

4. State Infrastructure Bank - SIB
Qualifying Projects?
Project must be part of the STIP (State Transportation Infrastructure Plan)

5. State Infrastructure Bank - SIB

6. State Infrastructure Bank - SIB
Public transportation projects including without limitation, construction, reconstruction, resurfacing, restoring, rehabilitation, or replacement of public transportation facilities within the state, any highway or other transportation project eligible for financing or aid under any federal act or program, and any project involving the maintenance, repair, improvement, or construction of a public highway, road, street, or parkway, any related right-of-way, bridges, tunnels, drainage structure, signs, guardrails or protective structures. Preliminary engineering and design, environmental studies and major investment studies are eligible.

7. State Infrastructure Bank - SIB
-The SIB must require each recipient to maintain project accounts in accordance with GASB. -Projects receiving SIB assistance must comply with Federal requirements which generally apply to projects under Title 23 and the projects are subject to those provisions of Federal laws which apply generally to activities of Federal grant recipients.

8. State Infrastructure Bank - SIB
Repayments on the loan must commence not later than 5 years after the project has been completed and repayment must be completed within 10 years
The interest free period is months 1-12 following the loan closing date.
Interest will begin to accrue at the date of the first loan disbursement excluding disbursements to pay for closing fees and after the interest free period, if applicable.
The Interest rate is set by the SIB loan committee and approved by the Cabinet Secretary. It must be at or below the market rate as of the Loan Committee loan approval date. Historically, the Department has charged an annual interest rate of 1 percent to 2 percent.
Six months will be allowed for a loan to close after written notification of loan committee approval.

9. State Infrastructure Bank - SIB
The borrower will have one year after the project completion date cited in the loan agreement to withdraw the approved loan amount, and such date shall be referred to as the loan withdrawal date. At the loan withdrawal date, the amount of the original loan that was not withdrawn will be cancelled and the loan amount will default to the amount of the loan withdrawn at the loan withdrawal date.
The loan agreement shall specify the documents that are required to be received by the SIB Loan Committee prior to the first disbursement.
Changes to approved loan terms must be approved by the Loan Committee and Cabinet Secretary. Changes to terms include but are not limited to changes loan amount, changes in the interest rate, the numbers of loan payments, the length of the loan, and deferment of loan payments.

10. State Infrastructure Bank - SIB
Process:
Submit Application
Further documentation may be requested
Negotiate terms with NMDOT Legal and Secretary
Present to State Transportation Committee
Sign Loan Agreement
Provide any documentation required in loan agreement
Dept will have to do a BAR which requires another presentation and authorization from State Transportation Committee prior to loan disbursement

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Questions?
Contact:
Kristen Dorland
NMDOT CFO