(1) All grant or loan monies awarded under this program must be utilized specifically for aviation or aeronautically related projects. The proposed projects will be detailed in an application submitted by a public sponsor, on a form provided by the board. The applicant is responsible for retaining and providing documentation to ensure all monies received under the program are spent as applied for within the application.

(2) Grants may be awarded for up to 50% of an applicant's share of total project cost when that same project is also receiving any assistance from federal sources.

(3) Grants may be awarded for up to 100% of an applicant's total project cost when that same project is not receiving any assistance from federal sources.

(4) Loans may be provided for up to and including 100% of an applicant's share of total project cost regardless of assistance from federal sources.

(5) Loans will be provided for a period of ten years and amortized using the fixed principal method. Interest repayment rates for loans are one half of federal prime lending rate of the first week of January of the preceding fiscal year for which the loan is provided. Interest will be compounded annually. Repayments are made annually and are due in full, or prorated as necessary, by the last day of February of each year. Successful applicants have the option of paying off their loans in full at any time after payment of award without additional interest or penalty.

(6) A recipient of a grant or loan must retain all records of transactions and disbursements of grant or loan monies for a period of three years after completion of the project for which the grant or loan was awarded. By accepting a grant or loan, a recipient agrees that upon reasonable notice, the state of Montana may audit the records supporting the acquisition and disbursement of the grant or loan monies.