Utah Administrative Code

The Utah Administrative Code is the body of all effective administrative rules as compiled and organized by the Division of Administrative Rules (see Subsection 63G-3-102(5); see also Sections 63G-3-701 and 702).

NOTE: For a list of rules that have been made effective since August 1, 2019, please see the codification segue page.

NOTE TO RULEFILING AGENCIES: Use the RTF version for submitting rule changes.

R704. Public Safety, Emergency Management.

Rule R704-3. Local Government Emergency Response Loan Program.

As in effect on August 1, 2019

Table of Contents

R704-3-1. Authority.

This rule is authorized by Section 53-2a-609.

R704-3-2. Purpose.

The purpose of this rule is to establish criteria, procedures, and requirements for the administration of the Local Government Emergency Response Loan Fund described in Section 53-2a-607.

R704-3-3. Definitions.

(1) Terms used in this rule are defined in Sections 53-2a-102, 53-2a-203, and 53-2a-602.

(2) In addition to the terms referenced in Subsection R704-3-3(1):

(a) "fund" means the Local Government Emergency Response Loan Fund;

(b) "loan" means a loan provided by the Division from the Local Government Emergency Response Loan Fund to an eligible local government entity for costs incurred for providing emergency disaster services as defined in Section 53-2a-602.

R704-3-4. Application.

(1) A local government entity wishing to apply for a loan from the fund shall submit to the Division:

(a) an application on a form approved by the Division;

(b) documentation that establishes a local disaster declaration for which the loan is being requested;

(c) documentation certified by the entity's chief financial officer stating that the entity has:

(i) established a local government disaster fund; and

(ii) deposited a minimum average of 5% of total estimated revenues into a local government disaster fund established in accordance with Section 53-2a-605 for at least five fiscal years previous to the date the disaster is declared; and

(d) documentation that establishes costs incurred by the local government entity for disaster recovery and supports the dollar amount of the loan being requested.

R704-3-5. Eligibility Review.

(1) The Division shall determine if the applicant:

(a) has fulfilled the application requirements in Section R701-3-4; and

(b) meets the eligibility criteria in Sections 53-2a-607 and 53-2a-608.

R704-3-6. Prioritization of Awards for Loan Applications.

(1) In accordance with Subsection 53-2a-609(2), the Division will consider the following criteria in prioritizing and awarding loans:

(a) the total account balance available in the fund;

(b) the severity or scale of the disaster or emergency that has been declared;

(c) the severity of the impact to local government entities that have submitted loan applications; and

(d) other sources of funding that might be available to the local government entity for the purpose of disaster recovery; and

(e) the likelihood the loan amount will be paid repaid in accordance with Section 53-2a-608 based on the local government entity's bond rating.

R704-3-7. Making Loans.

(1) Loan funds shall be obligated after all documents to secure a loan are complete, processed, approved, and appropriately signed by the applicant and the director.

(2) Disbursement of loan proceeds to the borrower will take place within 10 business days of the closing date of the loan.

R704-3-8. Servicing the Loans, Loan Repayment and Late Penalties.

(1) Loans will be serviced by the Division of Finance.

(2) Loan repayment schedules are outlined in Section 53-2a-608.

(3) The initial installment payment is due on a date established by the Division.

(4) Subsequent installment payments are due on the tenth day of each month.

(5) Loan payments may be made in advance or the remaining principal balance of the loan may be paid in full at any time without penalty.

(6) Penalties for late loan payments shall be:

(a) ten percent of the payment due;

(b) assessed and payable on payments received by the Division more than 15 days after the due date;

(c) assessed only once per scheduled payment; and

(d) noticed to the borrower with the amounts of penalty and the total payment due.

(7) Payments shall be considered received the day of the U.S. Postal Service post mark date or receipted date for payments delivered to the Division by methods other than the U.S. Postal Service.

(8) If a loan payment check is returned due to insufficient funds, a service charge in the amount allowed by law shall be added to the payment amount due.

(9) Notice of loans paid in full shall be sent after all penalties, interest, and principal have been paid.

R704-3-9. Recovering on Defaulted Loans.

(1) Loans may be considered in default when two consecutive payments are past due by 30 days or more.

(2) If the loan is determined to be in default under Subsection R704-3-9(1), the Division or the Division of Finance may declare the full amount of the defaulted loan, penalty and interest immediately due.

(3) The borrower shall be liable for attorney's fees and collection costs for defaulted loans, whether incurred before or after court action.


disaster recovery loans, local government disaster loans

Date of Enactment or Last Substantive Amendment

June 7, 2017

Authorizing, Implemented, or Interpreted Law

53-2a-607; 53-2a-608; 53-2a-609

Additional Information


For questions regarding the content or application of rules under Title R704, please contact the promulgating agency (Public Safety, Emergency Management). A list of agencies with links to their homepages is available at http://www.utah.gov/government/agencylist.html or from http://www.rules.utah.gov/contact/agencycontacts.htm.