Section 457-315-7 - Contracts; Fees and ExpensesThe Authority will enter into a contract with each participating community development organization. The contract will provide:
A. Each participating community development organization will provide a report every six months identifying: (1) The number of account holders it assists;(2) The aggregate dollar amount in accounts supervised by the CDO, identifying amounts contributed by account holders and amounts contributed through matching funds;(3) The sources of matching funds received and the amount received from each source. A source may choose to maintain anonymity.(4) The amount of matching funds provided to account holders;(5) The amount available in the CDO's family development account reserve fund;(6) Amounts withdrawn from accounts and the use of the funds;(7) Activities undertaken by the CDO to recruit account holders;(8) Activities undertaken by the CDO to recruit matching funds;(9) Services provided to account holders;(10) A listing of each financial institution where family development accounts are deposited, including the number of accounts at each and the aggregate dollar amount at each; and(11) Such other information as the Authority may require.B. Each community development organization must agree to put measures in place to assure that the matching contributions do not exceed $2000 per year and to prevent the deposit of matching funds in any account with a balance exceeding $10,000. Matching funds may be provided up to an amount which will bring an account balance to $10,000. The deposit of matching contributions into an account must be approved in writing by the community development organization administering the account.C. Each community development organization must agree to notify the financial institution holding the account of any changes in the status of the account, including the death of the account holder.D. Each participating community development organization must agree that it will spend no more than 15% of its family development account reserve fund(s) for administrative costs. The contract with the Authority may require that the participating community development organization pay an annual fee of up to 5% of the community development organization's family development account reserve fund(s) for the Authority's costs of administering the program. The amount paid to the Authority will be a portion of the 15% of the family development account reserve fund(s) which may be allocated for administrative costs of the community development organization.E. If the Authority determines that an applicant has failed to comply fully with the requirements of the statute and this rule and its contract with the Authority, the Authority may take such action as it deems appropriate, including: establishing a deadline for complete compliance, temporary termination from participation in the program, permanent termination of the applicant's participation in the program.F. Such other terms and conditions as the Authority deems appropriate.94- 457 C.M.R. ch. 315, § 7