1. The Iowa department of economic development may make a loan to a local development corporation only for the payment of all or part of the amount of interest of a loan made to a local development corporation which is attributable to the cost of construction of a building. The cost of construction does not include the costs of land acquisition, site preparation, railroad extensions, parking, roads, utility extensions or other work which is not the construction of the building.
2. The department may make the loan only for the interest due in the first, second and third years after the completion of the building as determined by the department. The department shall not loan more than twenty thousand dollars in a year for payment of the interest of a loan for the construction of any one building. The department may agree to loan only those funds which are in the building loan fund or those funds which are scheduled to be paid into the fund under section 15E.28 before they are to be loaned under the agreement.
3. To be eligible for the loans, the local development corporation must secure the agreement of the department to make the loan for the first year after completion before commencing construction of the building.
4. Interest shall not be charged on the loans made by the department.
5. The department may attach conditions to the granting of the loan as it deems desirable. The attorney general shall assist the department in drafting loan agreements and in collecting on the loan agreement.
[C81, § 28.27]
87 Acts, ch 17, § 3
C93, § 15E.27
Referred to in § 15.108
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