N.J. Admin. Code § 7:24A-4.17

Current through Register Vol. 56, No. 11, June 3, 2024

Section 7:24A-4.17 - Termination of loan

(a) The Department may terminate a loan in whole or in part for good cause subject to negotiation and payment of appropriate termination settlement costs. Good cause shall include, but is not limited to, default by the borrower or noncompliance with the terms and conditions of the loan.

1. The Department shall give written notice to the borrower (certified mail, return receipt requested) of its intent to terminate a loan in whole or in part at least 10 days prior to the proposed date of termination, which notice shall state the reasons for the proposed termination.

(b) If a borrower completely or partially terminates the project for which a loan has been awarded, the borrower shall promptly give written notice to the Administrator. The Department may enter into a loan termination agreement or unilaterally terminate the loan, effective as of the date that the borrower terminated work on the project. The Department may also annul the loan pursuant to 7:24A-4.18.

(c) The Department and borrower may enter into a loan termination agreement at any time, on terms consistent with the requirements of this chapter. The agreement shall establish the effective date of termination of the project and loan, basis for settlement of loan termination costs, and the amount and date of payment of any sums due either party.

(d) Upon termination of a loan, the borrower shall refund or credit to the State of New Jersey that portion of loan funds paid to the borrower and allocable to the terminated portion of the project, except such portion thereof as may be required to meet legal obligations incurred prior to the effective date of termination of the loan and as may be otherwise allowable as determined by the Department.

1. Upon receipt of written notice of the Department's intent to terminate the loan, the borrower shall make no new financial commitments of loan funds without Department approval.

2. Upon receipt of written notice of the Department's intent to terminate the loan the borrower shall reduce the amount of outstanding commitments of loan funds insofar as possible and report to the Administrator the uncommitted balance of loan funds.

N.J. Admin. Code § 7:24A-4.17