Application and agreement (Repealed)

(a) Application for a loan or loan guarantee shall be submitted on loan application forms prescribed by the Authority. No application shall be considered unless the exhibits required by such forms are furnished. The Borrower shall pay for all costs of processing applications for loans or guarantees to be made under this program, as the Commissioner determines are reasonable and necessary to pay such costs. (b) Upon approval of an application by the Authority or, if the Authority so determines, by a Committee of the Authority consisting of the Chairman and either one other member of the Authority or its Executive Director, as specified in the determination, the Department, the borrower and, where applicable, the financial institution shall enter into a loan or guarantee agreement which shall set forth the terms and conditions required by these regulations and other terms and conditions applicable to the particular loan or guarantee, which may be set by the Authority or said Committee of the Authority. (c) The loan or guarantee agreement shall be executed on forms provided by the Authority and shall be effective only upon execution by the Commissioner, the borrower and, where applicable, the financial institution. (d) Such loan or guarantee agreement shall provide, without limitation, that the borrower and, where applicable, the financial institution agree: (1) That the funds provided will be used solely in accordance with the eligibility requirements of Section 32-162-2 of these regulations; (2) To provide the Authority with such financial and other reports as required from time to time; (3) To notify the Authority promptly of any material adverse change in the financial condition or business prospects of the borrower; (4) To represent and warrant that they have the power and authority to enter into the loan or guarantee agreement and to incur the obligations therein provided for, and that all documents and agreements executed and delivered in connection with the loan or guarantee will be valid and binding upon the borrower in accordance with their respective terms; (5) To provide such security for the loan or guarantee as the Authority or the Committee or the Authority may require pursuant to sections 32-162-4 (a) or 32-162-5 (a) of these regulations and to execute and deliver all documents in connection therewith. (6) The borrower shall be responsible for closing costs incurred by the Department in such amounts that the Commissioner from time to time determines to be reasonable and necessary. (e) If, upon examination of the application, supporting information and results of any investigation, the Authority or the Committee of the Authority rejects such application, then the loan or guarantee may not be granted and the Authority shall cause the applicant to be notified that the application has been denied.