[Code of Federal Regulations]
[Title 13, Volume 1]
[Revised as of January 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 13CFR308.10]

[Page 504-505]
 
                TITLE 13--BUSINESS CREDIT AND ASSISTANCE
 
CHAPTER III--ECONOMIC DEVELOPMENT ADMINISTRATION, DEPARTMENT OF COMMERCE
 
PART 308--REQUIREMENTS FOR ECONOMIC ADJUSTMENT GRANTS--Table of Contents
 
  Subpart B--Special Requirements for Revolving Loan Fund Projects and 
                           Uses of Grant Funds
 
Sec. 308.10  Pre-loan requirements.

    (a) RLF recipients must adopt procedures to review the impacts of 
prospective loan proposals on the physical environment. The Plan must 
provide for the disapproval of any loan project that adversely (without 
mitigation) impacts flood plains, wetlands, significant historic or 
cultural properties,

[[Page 505]]

drinking water resources, or nonrenewable natural resources. In 
administering the RLF, the RLF recipient must adopt procedures to 
comply, and ensure that potential borrowers comply, with applicable laws 
and regulations including, but not limited to Secs. 316.1, 316.3, 316.7, 
316.8, 316.15, and 317 of this chapter.
    (b) RLF recipients are responsible for ensuring compliance with the 
applicable requirements of this chapter prior to providing any loan 
assistance under the RLF. RLF recipients are responsible for ensuring 
that prospective borrowers, consultants, or contractors are aware of and 
comply with the Federal statutory and regulatory requirements that apply 
to activities carried out with RLF loans. RLF recipients must develop 
loan agreements that include applicable Federal requirements to ensure 
compliance. RLF recipients must adopt procedures to diligently correct 
instances of non-compliance, including the calling of loans, if 
necessary. RLF recipient loan documents and procedures must protect and 
hold the Government harmless from and against all liabilities that the 
Government may incur as a result of providing an award to assist 
(directly or indirectly) in site preparation or construction as well as 
the renovation or repair of any facility or site. This applies to the 
extent that such liabilities are incurred because of ground water, 
surface, soil or other conditions caused by operations of the RLF 
recipient or any of its predecessors on the property.