(1) The right to matching funds prescribed in section 81-12,211 shall be established by filing the forms required by the director. Such forms shall be filed by the applicant on an annual basis and shall be used by the director to determine the amount of matching funds to be paid to the applicant each year. The matching funds may only be used by the applicant to pay for the project or to pay off debt financing related to the project.

(2) Interest at the rate specified in section 45-104.02, as such rate may from time to time be adjusted, shall be due by the applicant on any repayment of matching funds required under the Nebraska Rural Projects Act.

(3) All interpretations of the Nebraska Rural Projects Act shall be made by the director.

(4) An audit of a project shall be made by the director to the extent and in the manner determined by the director. The director may recover any matching funds which were erroneously allowed by issuing a repayment determination within the later of three years from the date the matching funds were paid or three years after the end of the transformational period.

(5) Any determination by the director that the applicant does not qualify, that a location is not a qualified location, that a project does not qualify, that investment does not qualify, or that matching funds must be repaid may be protested by the applicant to the director within sixty days after the mailing to the applicant of the written notice of the proposed determination by the director. If the notice of proposed determination is not protested in writing by the applicant within the sixty-day period, the proposed determination is a final determination. If the notice is protested, the director, after a formal hearing by the director or by an independent hearing officer appointed by the director, if requested by the applicant in such protest, shall issue a written order resolving such protest.