94- 457 C.M.R. ch. 107, § 8

Current through 2024-51, December 18, 2024

Section 457-107-8 - LOAN TERMS AND CONDITIONS

A. Mandatory Covenants. Any loan approved for the provision of capital reserve fund security under the program shall include covenants requiring the borrower to:

1. Make periodic payments of principal and interest;

2. Pay any taxes and governmental charges assessed against the borrower or any collateral;

3. Comply with all applicable federal, state and local laws, regulations and ordinances;

4. Obtain, maintain and pay for any insurance required as a condition of the financing commitment against damage to or loss of any collateral;

5. Maintain and repair any collateral;

6. Permit the Authority to inspect any collateral and to inspect and copy the borrower's books and records at any reasonable time;

7. Provide to the Authority periodic financial reports in form and content, at times and for periods acceptable to the Authority and prepared by persons acceptable to the Authority and also provide to the Authority, when specifically requested, annual income tax returns;

8. Refrain from transferring any interest in the collateral, if any, without the Authority's prior written consent;

9. Repay any advances necessary to protect the collateral, if any, or enforce the rights of the trustee or the Authority;

11. Execute such further assurances as may be reasonably required; and

12. Keep the collateral, if any, free from liens and encumbrances not approved in advance in writing by the Authority.

B. Optional Covenants. In addition, the Authority may impose such other terms and conditions as it may deem prudent or desirable to assure the sale of bonds at reasonable rates, completion and continuation of the project, preservation of collateral, if any, and repayment of the loan benefiting from a capital reserve fund.

94- 457 C.M.R. ch. 107, § 8