Pre-disbursement requirements and disbursement of funds to Revolving Loan Funds.

CFR · 2024-01-01 · US · Title 13

(a) (i) Certification from the RLF Recipient that the Recipient's accounting system is adequate to identify, safeguard, and account for the entire RLF Capital Base, outstanding RLF loans, and other RLF operations. (ii) The RLF Recipient's certification that standard RLF loan documents reasonably necessary or advisable for lending are in place and a certification from the RLF Recipient's legal counsel that the loan documents are adequate and comply with the terms and conditions of the RLF Grant, RLF Plan, and applicable State and local law. The standard loan documents must include, at a minimum, the following: (A) Loan application; (B) Loan agreement; (C) Board of directors' meeting minutes approving the RLF loan; (D) Promissory note; (E) Security agreement(s); (F) Deed of trust or mortgage (as applicable); (G) Agreement of prior lien holder (as applicable); and (H) Evidence demonstrating that credit is not otherwise available on terms and conditions that permit the completion or successful operation of the activity to be financed. (iii) Evidence of fidelity bond coverage for persons authorized to handle funds under the RLF Grant award in an amount sufficient to protect the interests of EDA and the RLF. At a minimum, the amount of coverage shall be the maximum loan amount allowed for in the EDA-approved RLF Plan. (2) The RLF Recipient is required to maintain the adequacy of the RLF's accounting system and maintain and update standard RLF loan documents at all times during the

official document · source cfr-2024 · id 13:§ 307.11