These Member Loan Terms and Conditions apply to loans offered through Trico Electric Cooperative, Inc.’s (“Trico”) energy efficiency loan program (“Program”) to support qualified energy efficiency improvements and related eligible projects or services at a Member’s service location. By accepting a loan, the Member agrees to comply with these Terms and Conditions, the loan agreement, any promissory note, all required disclosures, and any additional program requirements and agreements required by Trico.
1. Member Eligibility
To qualify for a loan, the Member must be an active Trico member (as defined in Trico’s bylaws) for at least 30 days before the date of application, have proper authority to install the approved improvement or project at the designated property, and maintain a satisfactory payment history with Trico. Eligibility may be denied or limited if the Member has made more than two late payments within the last 12 months, a history of Trico service disconnections due to nonpayment within the last three years, or insufficient account history. New Members without a waived deposit (under Trico’s Rules, Regulations, and Line Extension Policies) may be required to establish 12 months of billing history from another utility with no more than two late payments before becoming eligible. Trico will require proof of income and a satisfactory credit review. Trico will also set credit standards and other requirements that will determine Member Eligibility for a loan.
Credit Score Qualifications are as follows:
- Loan amounts up to $10,000.00.
- Credit score range of 620-700
- Loan amounts greater than $10,000.00.
- Credit score of 701 or higher
- Requires a Lien to be filed with filing costs paid by Member.
2. Eligible Improvements and Use of Loan Proceeds
Loan proceeds may be used only for approved qualifying improvements, projects, and related eligible costs. Eligible improvements may include weatherization projects such as insulation, doors, windows, and duct sealing; panel upgrades, including upgrades needed for electric vehicle chargers, solar systems, or energy storage; heating and cooling improvements such as electric heat pumps, conversion from gas to electric, and electric HVAC replacements; and approved appliances or equipment such as Energy Star rated appliance upgrades, energy storage units, pool pumps and heaters, and solar systems. All funded improvements must comply with applicable federal, state, and local building and environmental requirements. The list of eligible improvements or projects may be amended by Trico at its sole discretion.
3. Assessment and Loan Approval
Trico may complete an energy assessment of the service location before approving the loan. The assessment may evaluate existing conditions at the property and estimate the potential energy savings associated with the requested improvements. Loan approval is subject to Trico review of the application, assessment findings, supporting documentation, credit criteria, and overall program requirements. The Member may not use loan proceeds for any purpose other than the approved improvements and projects (approved in writing) unless Trico provides written approval.
4. Loan Terms and Repayment
Approved loans will be repaid through on-bill repayment which will be included on the Trico utility bill. The current program interest rate is 1.99%. Loan amounts up to $10,000.00 may be available to members meeting applicable underwriting requirements, including the required credit profile. Loan amounts greater than $10,000.00 will require a higher qualifying credit score and will also require a lien to be filed, with filing costs paid by the Member. The final loan amount, repayment term, interest rate, and payment schedule will be stated in the Member’s loan agreement and promissory note.
5. Required Documentation and Disbursement
Before loan funds are disbursed, the Member must provide all documentation required by Trico, which may include a legal property description, proof of income, proof of contractor license and bond, required permits from the authority having jurisdiction, required contracts, final bills for completed services and installation, and receipts for eligible appliances or equipment within the required time period. Loan proceeds will be paid directly to the licensed contractor contracted by Member to install the improvements and projects upon purchase and/or installation or otherwise disbursed as permitted under program requirements and loan documents. Trico may delay or deny disbursement if documentation is incomplete or if program requirements have not been satisfied. Trico shall not be responsible for any damages or losses of Member related to timely payment of contractor.
6. Member Responsibilities and Compliance
The Member is responsible for ensuring (and certifies) that all information submitted in support of the loan request is true, complete, and accurate. The Member must promptly provide any additional information requested by Trico and must ensure that all work performed and all equipment installed complies with applicable codes, permits, environmental requirements, and contractor obligations. The Member must also notify Trico of any material changes that may affect eligibility, repayment ability, or the approved use of loan funds.
7. Late Payments, Default, and Program Changes
Failure to make payments when due under the on-bill repayment schedule or other loan documents may result in the account being considered past due and may subject the Member to any applicable late charges or other remedies permitted by law. Providing false information, misusing loan proceeds, or failing to comply with program requirements may constitute a default. Trico may modify program requirements for future loans at any time, but any change to an existing loan must be reflected in writing and approved as required under the loan documents.
8. Member Acknowledgment
By signing below, the Member acknowledges that they have read and understand these Member Loan Terms and Conditions, meet or will meet all applicable program requirements, and agree to comply with the loan agreement, repayment obligations, documentation requirements, and all other conditions applicable to the approved loan.