Section 612.683 - Repayment of loan; forgiveness of outstanding balance under certain circumstances1. Except as otherwise provided in subsection 3, both principal and interest on a loan made under the program must be repaid to the nonprofit private entity not later than 4 years after the date on which the loan is made. The nonprofit private entity administering the loan must establish a payment schedule and agreement with the borrower. The schedule and agreement must provide that: (a) The first year of repayment of a loan is free from interest;(b) From the beginning of the second year of repayment of a loan, a loan which is not repaid in full by the end of the first year is subject to a maximum rate of interest not higher than the maximum rate of interest set forth in this paragraph on the outstanding balance of the loan until the loan is paid in full. For the purposes of this paragraph, the maximum rate of interest is a rate of interest equal to the prime rate at the largest bank in Nevada, as ascertained by the Commissioner of Financial Institutions, on January 1 or July 1, as the case may be, immediately preceding the date of the beginning of the second year of repayment of the loan, plus 2.25 percent simple interest per annum, with the amount of this maximum rate of interest adjusted accordingly on each January 1 and July 1 thereafter until the loan is paid in full.(c) The failure of the borrower to repay the principal and interest on the loan may result in collection proceedings to the extent allowable under the applicable laws and regulations of this State.2. Except as otherwise provided in subsection 3, any interest earned by the nonprofit private entity pursuant to subsection 1:(a) Must be deposited in a separate account established and maintained by the nonprofit private entity for the purpose of administering loans; and(b) Must not be commingled with any other money.3. If the Administrator determines that a nonprofit private entity has earned and collected interest in excess of the amount of money which is necessary for the purpose of administering loans, the Administrator may require that the amount of the excess be used to issue additional loans. 4. The Administrator may forgive the outstanding balance of a loan if:(a) The Administrator determines that the loan was not secured either in whole or in part by fraud or misrepresentation of the borrower;(b) The borrower demonstrates an inability to repay the loan; and(c) The recovery of the loan would be against equity and good conscience, as determined by the Administrator.Nev. Admin. Code § 612.683
Added to NAC by Employm't Security Div. by R128-09, eff. 4-20-2010; A by R084-14, eff. 10/24/2014