Section 661.259.206. Eligibility requirements and restrictions.

       259.206(1) Any local fire department in the state of Iowa is eligible to apply for a loan.

       259.206(2) Loan applicants shall be required to provide a 10 percent match.

       259.206(3) All successful loan applicants shall comply fully with the fire incident reporting requirements of the fire marshal division.

       259.206(4) No loan shall be made to a local fire department serving a population in excess of 30,000 people which will result in excess of 50 percent of the total funds loaned at any given time being loaned to local fire departments serving populations in excess of 30,000 people, unless the fire marshal finds that there are no eligible applications pending from local fire departments serving populations of 30,000 people or less.

       259.206(5) Following approval, loan funds will be provided only after the local fire department receiving the loan submits documentation showing that the department has either acquired, contracted for, or issued a purchase order for the equipment. Disbursement of the loan shall be in the form of a warrant payable either to the local fire department and the vendor or vendors supplying the equipment or repair services, or solely to the vendor or vendors, or, with the approval of the fire marshal, solely to the local fire department receiving the loan.

       259.206(6) A local fire department is eligible for only one loan during any five-year period or for the duration of an existing loan from this program, whichever is longer.

       259.206(7) A local fire department that has been in default on a loan is not eligible for additional loans through this program for a period of two years beyond the time specified in subrule 259.206(6). Any prior history of defaulting on a loan from the revolving loan fund will be taken into account in evaluating a department’s ability to repay a loan, pursuant to subrule 259.204(3), paragraph “b.”

       259.206(8) A local fire department receiving a loan is subject to a financial audit and any operational or program audits necessary to verify compliance with any requirements or conditions of the loan.