| (a) Application forms. A lender seeking a loan guarantee
from the Authority must use the application forms provided by the
Authority and must include all information requested.
(b) Submission of application. All applicants are required
to obtain approval from a lender before applications will be accepted
by the Authority. Staff will be available to assist applicants and
lenders in determining eligibility for a loan guarantee under this
subchapter.
(c) Staff review. Staff will review the application
for completeness and will notify the commercial lender of any additional
information required. When the received application has been determined
to be a qualified application, staff will review the lender's basis
for approval, evaluate the project, and examine whether it meets all
program requirements.
(d) Board or commissioner review. The staff shall submit
a credit memorandum to the board which shall include a recommendation
for approval or denial for each qualified application received by
the program. The board shall approve or deny each qualified application.
The board may impose additional terms and conditions as part of its
approval. The board may delegate to the commissioner or deputy commissioner
the authority to take any and all action described in this subsection.
(e) Notification of approval. Upon approval of the
qualified application, staff will notify the lender in writing identifying
the terms and conditions of the loan guarantee. The lender will prepare
the written agreements and documents necessary to close the loan in
accordance with the terms and conditions set forth in the notice of
approval. The staff will send the lender final notice of guarantee
approval after review and approval of the closing documents. Certain
time limits may be set regarding the acceptance of loan commitments
by the applicant and the lender; however, in no event shall the time
period exceed 45 days from date of notification unless previously
approved. The lender will disburse the loan according to the terms
and conditions of the note and/or loan agreement.
(f) Denial of application. If the application is denied,
staff will notify the lender in writing, identifying the reasons for
denial. Applicants who have been denied may re-apply to the loan guarantee
program.
(g) Providing false information. An applicant who knowingly
provides false information in an application shall be disqualified
from obtaining a loan guarantee under the program and shall be liable
to the Authority and the department for any expense incurred by the
Authority or the department as a result of the falsity. If the falsity
is discovered after approval of a loan guarantee, the falsity may
constitute grounds for revocation of the guarantee, and the Authority
shall be entitled to exercise all its rights under the loan documents.
(h) Reporting to the board. Staff shall report to the
board at each board meeting the status of loans of the Authority and
any applications approved by the commissioner under the program since
the last meeting of the board.
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