Ohio Administrative Code Title 5501:6 - Division of State Infrastructure Bank
Overview of Ohio Administrative Code Title 5501:6 - Division of State Infrastructure Bank
Purpose and Scope
OAC Title 5501:6 establishes the rules governing the Division of State Infrastructure Bank within the Ohio Department of Transportation (ODOT). The SIB program is designed to provide low-interest loans and credit assistance to public and private entities for the construction and improvement of transportation infrastructure projects in Ohio.
The goal of the SIB is to leverage state and federal funds to accelerate transportation projects that enhance mobility, safety, and economic development throughout the state.
Key Provisions of OAC Title 5501:6
1. Authority and Administration
The Division of State Infrastructure Bank is part of ODOT and operates under its jurisdiction.
The Director of Transportation or a designated official oversees the SIB program.
The Division administers loans, credit enhancements, and other financial assistance to eligible transportation projects.
2. Eligible Projects and Borrowers
Eligible projects typically include highways, bridges, transit facilities, and other transportation infrastructure.
Eligible borrowers include municipalities, counties, transit agencies, private developers, or public-private partnerships engaged in transportation development.
Projects must be consistent with state transportation plans and demonstrate feasibility and public benefit.
3. Loan Application and Approval Process
Applicants submit detailed proposals including project descriptions, financial plans, environmental reviews, and timelines.
The Division reviews applications based on criteria such as project readiness, economic impact, and repayment ability.
Priority may be given to projects that advance state transportation goals or generate significant economic benefits.
4. Loan Terms and Conditions
Loans are typically low-interest and include defined repayment schedules.
Security for loans may include revenue from tolls, user fees, or other dedicated funding sources.
The Division may impose covenants and conditions to ensure project completion and financial compliance.
5. Financial Management and Reporting
Borrowers must provide periodic reports on project progress and financial status.
The Division monitors compliance with loan agreements and may take enforcement actions if terms are violated.
Proper use of funds must be demonstrated, and misuse can result in penalties or repayment acceleration.
Relevant Case Law and Legal Principles
Case law specifically addressing OAC Title 5501:6 or the Ohio SIB program is limited, but related judicial decisions provide insight into the legal framework governing state infrastructure financing programs.
1. Authority to Administer SIB Loans and Financial Assistance
Courts have generally upheld the statutory and administrative authority of state transportation departments to establish revolving loan funds and infrastructure banks.
The Ohio courts recognize the Division of SIB’s power to issue loans and impose conditions as part of the state's legitimate exercise of its police powers to regulate and improve transportation infrastructure.
2. Eligibility and Prioritization Disputes
Borrowers who challenge loan denials or prioritization decisions must demonstrate that the agency acted arbitrarily, capriciously, or outside its statutory authority.
Courts typically defer to the Division’s expertise and administrative discretion unless clear procedural violations or bad faith are proven.
3. Loan Agreement Enforcement
Ohio courts have enforced repayment obligations under infrastructure loan agreements, emphasizing strict adherence to contractual terms.
Borrowers defaulting on loans face legal remedies including foreclosure on collateral or acceleration of repayment.
The integrity of loan agreements under the SIB program is critical for maintaining revolving funds and continued program viability.
4. Public vs. Private Participation
Ohio law permits private entities to participate in transportation infrastructure projects funded by the SIB, provided projects serve public interests.
Courts uphold program rules that require public benefit and alignment with state transportation goals as prerequisites for private project financing.
Summary
OAC Title 5501:6 governs the Ohio Division of State Infrastructure Bank, which provides financial assistance for transportation projects.
The Division administers loans, evaluates projects for eligibility, monitors loan performance, and enforces repayment.
Judicial decisions generally support the Division’s authority and discretion in managing the SIB program while requiring fair, transparent, and lawful administration.
Borrowers are held accountable to loan terms, and the program balances public and private interests in advancing Ohio’s transportation infrastructure.
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