1. The Bank of North Dakota shall administer a loan program to provide loans to nursing and basic care facilities for renovation projects or the construction of new facilities. A construction project may include a land purchase and the purchase, lease, erection, or improvement of any structure or facility to the extent the governing body of the nursing or basic care facility has the authority to authorize such activity. 2. The governing body of a nursing or basic care facility may submit an application to the Bank for a loan. The application must: a. Detail the proposed construction project; b. Demonstrate the need and long-term viability of the project; and c. Include financial information the Bank determines appropriate to verify eligibility. 3. A loan approved under this section: a. May not exceed fifty percent of project costs; b. May not exceed ten million dollars for a project; c. Must have an interest rate that does not exceed two percent; and d. Must have a repayment schedule of no longer than twenty years. 4. A recipient of a loan under this section shall complete the financed construction project within twenty-four months of the approval of the loan. Failure to comply with this subsection may result in forfeiture of the entire loan received under this section. 5. The Bank shall deposit in the strategic investment and improvements fund all principal and interest paid on the loans made from the fund. The Bank may deduct from interest payments a service fee for costs of administering the loan program, not to exceed one-half of one percent of the outstanding balance of the loans.
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