Sec. 32-9hh-3. Loan application and agreement

(a) Application for a loan shall be submitted on loan application forms prescribed by the Authority. No application shall be considered unless the exhibits required by such forms are furnished. The Borrower shall pay for all costs of processing applications for loans or lines of credit to be made under this program, as the Commissioner determines are reasonable and necessary to pay such costs.

(b) Upon approval of an application by the Authority or, if the Authority so determines, by a Committee of the Authority consisting of the Chairman and either one other member of the Authority or its Executive Director, as specified in the determination, the Department and the borrower shall enter into a loan agreement which shall set forth the terms and conditions required by these regulations and other terms and conditions applicable to the particular loan, which may be set by the Authority or said Committee of the Authority.

(c) The loan agreement shall be executed on forms provided by the Authority, and all costs of closing shall be paid by the borrower.

(d) Each loan agreement shall be effective only upon execution by the Commissioner and the borrower.

(e) Such loan agreement shall provide, without limitation, that the borrower agrees:

(1) That the funds provided will not be used solely to finance the planning of the facilities and the funds must be used directly to develop the facility;

(2) To provide the Authority with such financial and other reports as the Commissioner, in his discretion, may require from time to time;

(3) To notify the Authority promptly of any material adverse change in the financial condition or business prospects of the borrower;

(4) To represent and warrant that it has the power and authority to enter into the loan agreement and to incur the obligations therein provided for, and that all documents and agreements executed and delivered in connection with the loan will be valid and binding upon the borrower in accordance with their respective terms;

(5) To provide such security for the loan as the Authority or the Committee of the Authority may require pursuant to section 4 (a) of these regulations and to execute and deliver all documents in connection therewith.

(f) If, upon examination of the application, supporting information and results of any investigation, the Authority or the Committee of the Authority rejects such application, then the loan may not be granted and the Authority shall cause the applicant to be notified that the application has been denied.

(Effective January 24, 1985)