Senate Bill No. 2196 Summary

• Bank of North Dakota transfers the outstanding principal balance of a consolidation loan to the infrastructure revolving loan fund on August 1, 2023, with accrued unpaid interest consolidated into the new loan at 2% interest with a final maturity date not extending beyond July 1, 2053.

• All accrued and unpaid interest on the $25 million general fund loan to the western area water supply authority is transferred to the general fund, while all accrued and unpaid interest on the $10 million, $20 million, and $19.5 million resources trust fund loans are forgiven.

• Appropriates $2,000,000 from the resources trust fund to the department of water resources to pay accrued and unpaid interest on the $25 million general fund loan for the biennium beginning July 1, 2023, and ending June 30, 2025.

• Establishes that if the western area water supply authority defaults on infrastructure revolving loan payments, the Bank of North Dakota notifies the legislative council and the state water commission provides payment subject to budget section approval.

• Requires the authority to make additional principal payments on the infrastructure revolving loan in any month when the debt service coverage ratio exceeds 1.1, calculated as net income before capital expenditures, interest, and depreciation divided by the sum of interest expenses and required principal and interest payments.