If there is a need for the Lender to finance project costs before a complete application can be delivered to WHEDA, the Lender must complete the Intent Form (Form 2). By submitting this form, up to 20% of eligible project costs may be incurred prior to submitting a complete application to WHEDA. The application must be submitted within 90 days of the date of the Intent Form for the costs to be eligible. WHEDA will acknowledge receipt of the form.
If an Intent Form is not received by WHEDA, any project costs incurred prior to receipt of a complete application will be ineligible.
When evaluating a loan application, Lenders must be alert to the consequences of hazardous substance contamination at Borrower-owned and/or operated sites. The Lender may be held liable for site restoration costs and any third-party damage claims arising from the contamination if the Lender takes title to contaminated property, funded a working capital line to a known polluter, or if it is determined the Lender "operated" the site either directly or by virtue of exercising a significant degree of management and/or control.
A lien may be placed on a property for the cost incurred for "cleaning up" the property when a federal or state environmental government agency must intervene to clean up a site. This lien may also take precedence over other liens on the property diminishing any value the collateral has to the prior lienholders such as the Lender.
The Lender bears absolute responsibility for assuring itself that no environmental issues exist which would cause impairment to the collateral offered.
Guarantee payment requests may be reduced or denied in full if environmental issues are present.
