Section 457-301-3 - Loan Fund AllocationLoan funds and other appropriations available to the Authority for the job-start program shall be allocated to community action agencies which have executed a Contract for the fiscal year and are not in default thereunder in the following manner:
A. Each contracting community action agency shall be allocated in each fiscal year an equal portion of the available loan funds to be used solely for approved job- start program loans. In each fiscal year the Authority may allocate to the contracting community agency less than the total, amount available in the job-start loan fund, as it determines is necessary to preserve the integrity of the loan fund. After six months, the Authority may reallocate the loan funds as deemed prudent by the Authority.B. Repealed effective September 18, 1990.C. New loan funds are available from the principal portion of payments received from loan recipients. Each contractor will be allocated the principal portion of funds paid back by recipients of loans processed by the contractor. The Authority will track these funds by contractor and make them available to the contractor.D. The investment interest accrued on the loan fund shall be available subject to a 30% match, for the administrative expenses of all contracting community action agencies, to be provided and paid in accordance with the contracts executed between the Authority and the community action agencies, provided that no monies will be available for administrative expenses from the investment interest accrued on the loan fund until all funds appropriated for use for administrative expenses in prior fiscal years have been committed. In addition, each contracting community action agency shall receive any amount appropriated by the legislature in each fiscal year for purposes of special administration expenses of the program in accordance with such appropriation and the contract executed between the Authority and agency.E. In addition to the funds for administrative expenses available from the investment interest, each contractor will have access to the interest portion of funds paid back by recipients of loans processed by the contractor. The Authority will track these funds by contractor and make them available to the contractor in accordance with the Contracts.F. If at any time a Contract is terminated, the Authority may reallocate the unused balance of loan funds previously allocated that contractor, or such portion thereof as the Authority may elect, to another contracting community action agency. All principal and interest from outstanding loans shall be allocated to the contractor servicing the loans in accordance with this rule. The Authority may also reallocate unmatched administrative funds to the agency or agencies to which unused loan funds are reallocated.G. In the event the contract provides for the community action agency to administer the Maine Job Start Program and for control by the community action agency of a portion of the job start revolving loan fund for a specified period of time:1 The Authority shall establish and divide the loan fund into a separate revolving loan fund to be administered by the community action agency. (a) That portion of the job start revolving loan fund to be controlled by the community action agency shall equal that portion constituting all loans processed by that community action agency, including any and all unpaid principal and accrued interest thereon, less all due and proper deductions for administrative expenses of the Authority, and the Authority shall transfer and assign to the community action agency all loan documentation evidencing the same.2 Each separate revolving loan fund must contain all repayments of principal and interest for loans made from that fund and interest earned by that fund.3 Costs of collection of interest and principal payments required by loan defaults are charged to the fund to which repayments are applied.4 Appropriations available to the Authority for the job-start program in any fiscal year shall be allocated in accordance with subparagraph A, and as allocated shall be delivered to the community action agency for deposit in its separate revolving loan fund.5 Each community action agency has responsibility for the allocation and distribution of the portion of the fund allocated to its separate revolving loan fund.6 All interest earned by the separate revolving loan fund either by means of investment or loan payments is available to the community action agency administering that separate revolving loan fund to which the interest is attributable. The community action agency shall allocate these funds primarily for administrative and counseling services.H. The Authority may allocate to itself up to $10,000 of administrative program funds derived from investment interest on the fund per contractor for expenses incurred by the Authority in administering this program. In the event that the Authority has provided for the community action agency to administer the Maine Job Start Program and to control a portion of the job start revolving loan fund, then the community action agency shall allocate and pay over to the Authority from the investment interest on its separate fund the amount allocated by the Authority to itself for such expenses.94- 457 C.M.R. ch. 301, § 3