Section 290.80  Terms and Conditions of Loan Agreement

An approved loan application with the Office and the Authority is subject to the following terms:

a)         Orders for payment will be submitted to the Office of the Comptroller by the Office according to the terms of Section 290.70, Repayment Procedures.

b)         Loan proceeds under this program shall be used exclusively for the purposes listed in Section 290.30 of this Part and shall be expended in accordance with the approved application and the applicant’s policies and procedures related to such expenditures.  In the event that the loan proceeds are not expended in the manner approved, then the fire department, upon written notification from the Office, shall be required to submit, by the next payment due date, payment of the outstanding principal of the loan.

c)         Loan proceeds shall be obligated no later than six months following the receipt of the loan.

d)         Use of loan proceeds shall be accounted for in accordance with standard accounting practices.  Loan recipients shall submit to the Office a report detailing how the loan proceeds were used.  This expenditure report, to be submitted on a form supplied by the Office, shall be due not later than nine months following receipt of the loan.

e)         Loan proceeds shall be included in the fire department’s budget.

f)          In the event of default that is not cured within 90 calendar days, the Office shall notify the Office of the Comptroller to deduct the amount owed from any payments from other State agencies, and the fire department shall be ineligible for additional loans until good standing has been restored.  In addition, the Office and/or the Authority may avail itself of all remedies, rights and provisions of law applicable in the circumstances, and the failure to exercise or exert any rights or remedies provided by law may not be raised as defense by the fire department in default.