Current through Register Vol. 35, No. 11, June 11, 2024
Section 8.16.3.12 - LOAN TERMS, DOCUMENTS AND ENFORCEMENTA. The authority and the eligible applicant will enter into an agreement and any other applicable documentation to establish the terms and conditions of the loan from the authority. The agreement will include the terms of repayment and sanctions available to the authority in the event of a default.B. The board will establish the interest rate for loans. The authority will set the rate at the lowest legally permissible interest rate. The interest rate shall not change during the term of the loan unless refinanced.C. The agreement will contain provisions that require loan recipients to comply with all applicable federal, state and local laws and regulations.D. The agreement will contain a provision that the eligible applicant agrees that any contract or subcontract executed for the completion of any project shall contain a provision that there shall be no discrimination against any employee or applicant for employment because of race, color, creed, sex, religion, sexual preference, ancestry or national origin. The authority shall not be responsible for monitoring the contracts or subcontracts for inclusion of that provision or compliance with it.E. In order to receive a loan greater than $20,000.00 the applicant shall require any contractor of a project to post a performance and payment bond in accordance with the requirements of Section 13-4-18 NMSA 1978 and its subsequent amendments and successor provisions.F. The authority will monitor the terms and conditions of the agreement in conjunction with the department and will enforce all terms and conditions thereof, including prompt notice and collection. The authority will take actions as necessary to ensure loan repayment and the integrity of the fund.G. If any repayment of a loan is 30 days past due the authority and the department will report to each other and to the application committee as to the borrower's then current status as it relates to the loan, including licensure status and any reported or known violations of applicable laws or rules to which the facility is subject and any known change in financial status. If any repayment of a loan is 60 days past due the application committee shall develop a workout plan taking into account all actions, remedies and sanctions available to the department and the authority and will make recommendations to the department and the authority as needed to implement the workout plan. Any such workout plan and its implementation is in addition to and not instead of the courses of actions, remedies and sanctions available separately to the department or the authority under the act, these rules or the agreement or in any other manner available by law.H. The department will monitor the performance of an eligible applicant under department licensure requirements and for programmatic requirements and will make the necessary site visits. The authority will not monitor the performance of an eligible applicant under department licensure requirements nor for programmatic requirements and will not make site visits. The authority will not be responsible for any act or omission of the applicant upon which any claim, by or on behalf of any person, firm, corporation or other legal entity, may be made, arising from the loan or any establishment or modification of the project or otherwise.I. In the event the loan recipient defaults, the authority may enforce its rights by suit or mandamus and may utilize all other available remedies under state and federal law.J. If an eligible applicant that has received a loan ceases to maintain its provider status or ceases to provide child care to infants, toddlers and children, the state shall have the following remedies available to it:(1) the acceleration of the loan requiring the immediate repayment of all amounts due, including all accrued and unpaid interest;(2) any other remedies available at law or in equity.8.16.3.12 NMAC - Rp, 8.16.3.11 NMAC, 09/14/07