14 Ill. Adm. Code 640.150
Loan Agreement
Section 640
Section 640.150 Loan
Agreement
A loan agreement will be
developed for each business borrower that receives loan funds. The loan
agreement will contain, at a minimum, the following items:
a) Definition Section – Defining the key terms used in the
agreement.
b) Loan Conditions – Including statements relating to
representations and warranties, evidence of other financing, note, collateral,
corporate or partnership document, and legal matters.
c) Borrower Representations and Warranties – Concerning form of
ownership, authorization of agreement, binding effect, accuracy of application,
collateral, accuracy of financial statements, absence of loan defaults, absence
of litigation, absence of tax delinquencies, and possession of appropriate
licenses and permits.
d) Covenants and Continuing Agreements – To expend public funds
in accordance with approved budget, keep detailed project records, furnish
proof that its corporate or partnership existence is in full effect, pay all
applicable taxes and required insurance, prohibit loans to officers/directors/stockholders,
and comply with all applicable state and federal laws.
e) Default Provisions – Listing the conditions under which the
borrower would be in default of the agreement.
f) Use of Loan Proceeds – Briefly describing the business project
for which the loan is being made and the exact use of loan funds.
g) Financing of Borrower – Information on primary lender, the
amount of the lender's loan, terms of this loan, etc., as well as information
and schedule of expected payout of the Department's loan commitment to the
borrower.
h) Labor Compliance Requirements – As appropriate, including
equal opportunity employment, minimum wage, and other state or federal labor
standards.
i) Other – Such other terms and conditions necessary to secure
or document the loan, including, but not limited to: key man life insurance,
liens, and Uniform Commercial Code (U.C.C.) (Ill. Rev. Stat. 1989, ch. 26,
pars. 1-101 et seq.) filings.