94- 457 C.M.R. ch. 301, § 10

Current through 2024-51, December 18, 2024
Section 457-301-10 - Covenants of Borrower

The borrower will agree to the following terms and conditions in the loan documentation, as may be reasonable and applicable:

A. The borrower will comply with all applicable planning, zoning, sanitary, building and environmental laws, ordinances and regulations of the federal, state and local governments.
B. The borrower will agree not to convey, lease or transfer any collateral for the loan without the prior written consent of the Authority.
C. The borrower will agree to participate in such marketing and training programs as the Authority may require.
D. The borrower will expend no portion of the loan directly or indirectly for purposes other than those approved by the Authority.
E. The borrower will keep and maintain proper books, records and accounts, and operate the business in a businesslike manner, and will allow the Authority or its designated representatives to examine the business and the books, records and accounts at any reasonable time.
F. The borrower will pay, when due, all taxes or charges assessed against the collateral or the business.
G. The borrower will keep insured to the satisfaction of the Authority all insurable property securing the loan and will maintain the collateral in good condition and repair.
H. The borrower will repay any advances or expenses of the Authority necessary to protect the collateral or enforce the rights of the Authority against the borrower or the collateral.
I. Capital expenditures may be limited as deemed necessary by the Authority.
J. The borrower will not alter or relocate collateral or the business or change the nature of the business without the prior written consent of the Authority.
K. The borrower will comply with such other covenants as the Authority may impose or establish.
L. In the event that the Authority has provided for the community action agency to administer the Maine Job Start Program and to control a portion of the job start revolving loan fund, then the provisions of subparagraphs C, D, E, F, and G shall apply to and benefit the community action agency instead of the Authority, mutatis mutandis.

94- 457 C.M.R. ch. 301, § 10