Conn. Agencies Regs. § 17-31ee-4 - Loan agreement

(a) Upon approval of an application by the Commissioner, 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 Department.

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

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

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

(1) To provide the Department with such financial and other reports as the Commissioner, in his discretion, may require from time to time.

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

(3) 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 shall be valid and binding upon the borrower in accordance with their respective terms;

(4) To provide such security for the loan as the Commissioner may require pursuant to Section 5 (c) of these regulations and to execute and deliver all documents in connection therewith.

(5) The borrower shall submit yearly enrollment forms on the day care children, during the loan term, in order to ensure that the facilities are being used primarily for children of the borrower's employees, and children of municipal employees, as mandated by Connecticut General Statute 17-31ee.

Notes

Conn. Agencies Regs. § 17-31ee-4

Effective August 28, 1989