Loans to small contractors (Repealed)

(a) The Authority may require the Borrower to provide the Department as further security for the loan or line of credit, mortgages or security interests in any or all of the following: real property, accounts, chattel paper, documents, instruments, general intangibles, goods, equipment, inventory or other personal property, and may further require the Borrower to have executed and delivered to the Department security agreements, financing statements, mortgages, pledges, assignments, subordinations, guarantees or other documents or evidences of security as and in the form required by the Authority. (b) The term of a working capital loan shall not exceed twelve months from the date of the first disbursement and the term of an extension of credit on a line of credit shall not exceed twelve months from the date on which proceeds were first disbursed. (c) No loan or line of credit shall exceed the amount provided in subsection (d) of Section 2 of Public Act 83-580. (d) The loan or line of credit shall be repaid on an amortized schedule of periodic payments or upon such other periodic methods of payment of principal and interest as the Authority considers appropriate in the particular circumstances, but in no event shall the periodic payments be scheduled to exceed twelve months from the relevant date of disbursement referred to in Subsection (d) of Section 2 of Public Act 83-580. (e) Disbursement of the loan shall be made at the discretion of the Commissioner in accordance with the provisions of the loan agreement and the instructions of the Authority.