Louisiana Revised Statutes Tit. 33, § 1419.6. Loan conditions and repayment

A. Upon approval of an application by the Department of Conservation and Energy, the department may lend amounts on deposit in the alternative fuels loan fund to a local governing authority to finance all or a portion of the cost of a fleet conversion. The loans are subject to the borrower's compliance with the conditions of the loan, as well as any applicable rules or regulations promulgated by the department.

B. Prior to making a loan, the Department of Conservation and Energy shall determine that the clean fuel vehicles will be fully insured and that the local governing authority has the ability to repay the loan and may require a dedicated source of repayment and impose additional requirements as the department deems necessary.

C. Each loan, unless prepaid, shall be payable subject to the loan agreement, with principal and interest payments commencing not later than one year after the completion date of the project for which the loan was made, and each loan shall be fully amortized not later than ten years after the completion date.

E. Each loan shall be evidenced by a bond, note, or other evidence of indebtedness of the borrower, in a form prescribed or approved by the Department of Conservation and Energy. The evidences of indebtedness shall be consistent with the provisions of this Subpart and, if federal funds are used, consistent with the terms of the appropriate federal act and are not required to be identical for all loans.