Suspension Or Termination Of Loan Contracts

01. Causes. The Director may suspend or terminate any loan contract prior to final disbursement for failure by the loan recipient or its agents, including engineering firm(s), contractor(s) or subcontractor(s) to perform. A loan contract may be suspended or terminated for good cause including, but not limited to, the following: (3-24-22) a. Commission of fraud, embezzlement, theft, forgery, bribery, misrepresentation, conversion, malpractice, misconduct, malfeasance, misfeasance, falsification or unlawful destruction of records, or receipt of stolen property, or any form of tortious conduct; or (3-24-22) b. Commission of any crime for which the maximum sentence includes the possibility of one (1) or more years’ imprisonment or any crime involving or affecting the project; or (3-24-22) c. Violation(s) of any term of the loan contract; or (3-24-22) d. Any willful or serious failure to perform within the scope of the project, and project schedule, terms of engineering subagreements, or contracts for construction; or (7-1-26) e. Debarment of a contractor or subcontractor for good cause by any federal or state agency from working on public work projects funded by that agency. (3-24-22) 02. Notice. The Director will notify the loan recipient in writing and by certified mail of the intent to suspend or terminate the loan contract. The notice of intent will state: (7-1-26) a. Specific acts or omissions which form the basis for suspension or termination; and (3-24-22) b. That the loan recipient may be entitled to appeal the suspension or termination pursuant to Section 003. (7-1-26) 03. Reinstatement of Suspended Loan. Upon written request by the loan recipient with evidence that the cause(s) for suspension no longer exists, the Director may, if funds are available reinstate the loan contract. If a IDAHO ADMINISTRATIVE CODE IDAPA 58.01.12 – Rules for Administration of Department of Environmental Quality Wastewater & Drinking Water Loan Funds Section 995 Page 19 suspended loan contract is not reinstated, the loan will be amortized and a repayment schedule prepared in accordance with provisions of the loan contract. (7-1-26) 04. Reinstatement of Terminated Loan. No terminated loan will be reinstated. Terminated loans will be amortized and a repayment schedule prepared in accordance with provisions of the loan contract. (7-1-26) 081. – 994. (RESERVED)