N.J. Admin. Code § 7:26-14A.9

Current through Register Vol. 56, No. 19, October 7, 2024

Section 7:26-14A.9 - Payment procedures

(a) The escrow agent shall only make payments in accordance with the escrow agreement which shall be consistent with the loan agreement and this subchapter. A retainage may be held in accordance with the loan agreement.

(b) The escrow agent shall certify that all disbursements from the account will be made strictly in accordance with the escrow agreement, the loan agreement and this subchapter. The form of certification shall be subject to Department approval and shall be attached to the loan agreement and be made a part thereof.

(c) The borrower shall submit a requisition to the escrow agent which sets forth the amount of the requested disbursement and the purposes for which the money to be used. The borrower shall certify that the money requisitioned will be used in accordance with the loan agreement and this subchapter. The requisition and certification shall be signed by the individual vested with such authority by the local government unit. The form of requisition and certification shall be subject to Department approval and shall be attached to the loan agreement and made a part thereof.

(d) through (g) (Reserved)

(h) In the event that no monies are requisitioned by the borrower or disbursed from the escrow account within one year of the loan closing date of the loan agreement, all monies in the escrow account, including all investment earnings from the monies in the escrow account, shall revert to the Fund and be credited as repayment of the principal of the loan by the borrower.

(i) In those cases in which the Department is to act as escrow agent pursuant to 7:26-14A.11(b)5, all requirements of this section shall apply to the Department except that (c) above, shall not apply. Whenever in this section reference is made to an escrow agent as a separate entity from the Department, the same term shall mean and refer to the Department which shall then carry out all functions of the escrow agent.

N.J. Admin. Code § 7:26-14A.9

Recodified from 7:26-14A.12 and amended by R.1996 d.578, effective 12/16/1996.
See: 28 New Jersey Register 2114(a), 28 New Jersey Register 5248(a).
Inserted (b) and (c); and in (h), amended nonrequisition period from one year. Section was "Criteria for project loan priority".