For other cash funded or Build America Bonds projects the repayment period shall not exceed the estimated life of the energy savings generated by implementing the energy efficiency measures being financed, not to exceed twenty (20) years.  In this case, the borrowing agency is expected to repay the loan with funds saved through improved energy efficiency and reduced energy usage. 

When the loan is used for purposes that are expected to produce or actually do produce little or no cost savings, the agency remains liable for timely loan payments until the loan is paid in full or excused through official procedures as determined by the Loan Committee or applicable statute.

An agency with multiple energy projects may have more than one loan outstanding at any particular time and the timing of the due dates and maturity dates on these loans may vary.  The total amount repaid each period by an agency likewise may vary due to the timing difference of the loans. 

For example, assume an agency has a loan with quarterly payments of $1,000 that will be paid off December 31 of the current year.  Also assume the same agency has a second loan with quarterly payments of $500 that will not be paid off until the end of the following year. 

During the current year, each loan payment will be $1,500 (first loan $1,000 plus second loan $500).  Starting with the first quarter in the following year, payments will then fall to $500, the amount of the second loan (the first loan has already been paid off).  Payment amounts on a single loan may also increase or decrease if the loan is used for multiple projects with different payback periods.  In this case, payments shall be a function of the component projects' amortization schedules.

The Loan Committee reserves the right to assess late fees or other penalties for delinquent payments by a state agency. Payments of interest and repayment of principal are added to the revolving loan programs and may be used for additional loans.