Regulations of Connecticut State Agencies

Sec. 32-9bb-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 up to $100.00 for the costs of processing the application for a loan under this program, if the Commissioner determines it is reasonable and necessary for the borrower to pay such costs.

(b) Loan applications shall be considered by the Authority on a quarterly basis, in the months of March, June, September and December, for those applications received by the Authority not later than the first day of the month preceding the respective month of each quarterly review. The total amount of all the loans approved by the Authority under this section shall not exceed $500,000 for any quarter.

(c) Each loan application will be scored in accordance with the Department of Environmental Protection Priority Scoring System.

Those applications receiving the highest priority score shall be considered first for loans under this section.

(1) Priority Scoring System

(2) In the event of a tie score, that application with the highest hazard and condition points would be given priority for processing and funding.

(d) 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, 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 established by the Authority.

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

(f) Each loan agreement shall be effective only upon execution by the Commissioner and the borrower, and approval by the Secretary of the Office of Policy and Management and the Attorney General.

(g) Such loan agreement shall provide, without limitation, that the Borrower agrees:

(1) That the funds provided will be used solely for the repair costs of the dam.

(2) To provide the Authority with such financial and other reports as it 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 may require pursuant to section 4 (a) of these regulations and to execute and deliver all documents in connection therewith.

(h) The borrower must demonstrate to the satisfaction of the Authority that it has sufficient revenues to pay the principal and interest on the loan and to complete the repair of the dam in accordance with plans and specifications approved by the department of environmental protection.

(i) If, upon examination of the application, supporting information and results of any investigation, 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, 1986)