Utah Admin. Code R311-212-7 - Procedure for Making Loans
(1) Loan funds
shall be obligated after documents to secure a loan are complete, processed,
and appropriately signed by the applicant and the director.
(2) The director may approve a borrower's
request for one initial disbursement of loan proceeds to the borrower after the
loan is closed, and before work begins.
(a)
the initial disbursement shall be for the lesser of 40% of the approved loan
amount or the amount required by the borrower's contractor as an initial
payment before work is done.
(b)
disbursement of the remaining loan proceeds, or disbursement of the entire loan
proceeds if no initial disbursement is made, shall be made after work at the
site is completed, and paperwork and notifications have been received by the
director.
(i) if an initial loan disbursement
is made, the borrower shall begin work on the project no later than 60 days, or
another time period approved by the director, following the initial
disbursement.
(ii) disbursement of
the remaining loan proceeds shall be made no later than 180 days, or another
time period approved by the director, following the initial
disbursement.
(c) if
work is not initiated or completed within the time periods established in
Subsection R311-212-7(2)(a), the loan balance must be paid within 30 days of
notice provided by the director.
(3) Loan proceeds may not be used to pay UST
registration fees, penalties, or interest assessed under Section
19-6-408
or petroleum storage tank fees, penalties, or interest assessed under Section
19-6-411.
(4) Loans shall not be made for work which is
performed before the applicant's loan application is approved and the loan is
closed.
Notes
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