Before providing a Program loan, the Department may require or perform such further credit checks and other due diligence as it deems appropriate. The Applicant and proposed Borrower must cooperate to the Department’s satisfaction with respect to such credit checks and other due diligence.
The Department may require that the Borrower and others execute, record and deliver such documents, including such representations, covenants and warranties, as the Department deems appropriate. The Borrower must cooperate fully with such document requirements.
The Department may require such Collateral requirements as it deems appropriate. The Borrower and others shall provide such assurances of Collateral as the Department may require.
The Department may require the payment of a loan fee of not more than one and one-half percent of the amount of the loan to recompense the Department for its costs of loan administration.
Notwithstanding any Program loan commitments by the Department, all Program loans are subject to the availability of Funds as reasonably determined by the Department.
The initial amount of any Program loan shall not exceed $20,000. The total amount of Funds loaned to any Applicant or Borrower shall not exceed $40,000.
The Department may, in its reasonable discretion, disburse the proceeds of an approved loan in such amounts and at such times as the Department deems appropriate to ensure that loan proceeds are used for Project purposes and to preserve the integrity of the Fund. If the Department determines that the financial condition of the Borrower has deteriorated, the Department may suspend or terminate further Program loan disbursements. The Department also may exercise any other remedy available to it in law, contract or otherwise.
The Borrower must abide by all laws and regulations applicable to the Project and provide evidence satisfactory to the Department of its receipt of all applicable federal, state and local permits and licenses before the Department will make any disbursement of Program loan Funds. The Borrower also shall fully and timely perform all Program loan obligations, including as provided in any Program loan documents. The Department may suspend, terminate or exercise any other remedy with respect to its Program loan upon a determination by the Department of any default or other failure of performance by the Borrower, including but not limited to any failure of timely completion of the Project, misallocation of Program loan funds or failure to make timely Program loan repayments.
The Department may take such action as it deems appropriate in the review and enforcement of a Project or of a Program loan, including but not limited to entry onto Project property, inspection of a Project and review and copying of any Borrower documents with respect to a Project. The Borrower shall cooperate fully with the Department in such review and enforcement efforts and agrees to allow Project inspection and review and copying of Project documents as the Department deems appropriate.
At the request of the Department, the Borrower will provide to the Department annual financial statements; copies of tax returns and other requested documents. The Department may require additional financial information or more frequent financial statements.