Regulations of Connecticut State Agencies
Each loan shall be evidenced by a promissory note which shall contain such provisions, clauses and covenants as the Authority, in its sole discretion, may require including, without limitation, provisions:
(1) Permitting the borrower to prepay the loan in whole or in part upon any interest payment date.
(2) Providing for the payment of interest at a rate not to exceed one percent (1%) above the interest paid by the State of Connecticut on the latest general obligation bonds issued prior to the date of approval of the loan.
(3) Providing for the collection of a late charge, not to exceed two percent of any installment more than fifteen days in arrears. Late charges shall be separately charged to and collected from the borrower.
(4) That any misrepresentation, breach of warranty or other breach of any agreement or covenant contained in the loan agreement, the promissory note, or other documents signed by the borrower in connection with such loan shall be considered a default under such promissory note.
(5) That the failure of the borrower to make a payment of any installment of principal or interest due under the promissory note within thirty days from the due date shall constitute a default.
(6) That upon default, any and all sums owing by the borrower under the promissory note shall, at the sole discretion of the Commissioner, become immediately due and payable.
(7) That upon default interest on the promissory note shall automatically increase two percent per annum above the rate of the said note and shall apply not only after default, but after any judgment rendered upon said promissory note.
(8) Providing for payment of reasonable attorneys' fees and legal costs in the event the borrower shall default in the payment of the note.
(Effective May 22, 1987)