(a) The Commissioner may solicit and/or accept applications for financial assistance from eligible municipalities.
(b) A municipality shall include in its application, a list of homeowners to be served by the financial assistance, together with copies of all submissions made by the homeowner to the municipality.
(c) Applications shall be approved or disapproved based on the eligibility of the proposed activities and the availability of financial assitance. All approvals are subject to funding by the State Bond Commission.
(d) If an application is disapproved, the municipality shall be notified in writing of the reason(s) for the disapproval.
(e) If an application is approved, the Commissioner shall notify the municipality in writing.
(f) Following approval by the State Bond Commission pursuant to the provisions of Section 3-20 of the Connecticut General Statutes, the state, acting by and through the Commissioner, may enter into a contract with an eligible municipality for financial assistance in the form of a loan.
(g) Such contract shall include, but not be limited to, the amount of the loan to be provided, the term of the contract and the rights and obligations of the parties under the contract.
(h) The term of a loan shall be for a period not to exceed fifteen years. The interest rate for loans shall be determined in accordance with Connecticut General Statutes Section 3-20(t).
(i) The municipality shall be required to immediately repay to the State, the loan plus any accrued interest, if all of part of the loan is used for purposes other than eligible repair or reconstruction of faulty subsurface sewage disposal systems installed pursuant to improper municipal approvals.