N.J. Admin. Code § 7:1A-2.17

Current through Register Vol. 56, No. 24, December 18, 2024

Section 7:1A-2.17 - Loan conditions

(a) The following requirements, in addition to such other statutes, rules, terms and conditions as may be applicable to particular loans, are conditions of each loan and conditions precedent to each payment under a loan award document:

1. The borrower shall certify that the project or phase of the project was initiated and completed in accordance with the time schedule specified in the loan award document.

2. The borrower must submit proof of it and its contractors, and subcontractors, compliance with all hazard insurance requirements of the loan award document and certify that the insurance is in full force and effect and that the premiums have been paid.

3. The borrower shall certify that it and its contractors and subcontractors are maintaining their financial records in accordance with accounting principles required by New Jersey law.

4. The borrower shall certify that it and its contractors and their subcontractors are in compliance with the discrimination and affirmative action provisions of N.J.S.A. 10:2-1 through N.J.S.A. 10:2-4, the New Jersey Law Against Discrimination, N.J.S.A. 10:5-1 et seq., and the rules and regulations promulgated pursuant thereto.

5. The borrower shall certify that the borrower includes in all its construction or development contracts for the project a requirement that the contractor post a performance bond or other performance guarantee in an amount equal to the full cost of the project.

i. This performance bond or guarantee shall remain in effect until the Department's final inspection of the project and determination in writing that the project is satisfactorily completed.

ii. The performance bond or performance guarantee shall be both nondiscriminatory and financially satisfactory to the Department, and meet all statutory requirements.

6. The borrower shall certify that it is in compliance with all other requirements and conditions of the loan award document.

7. Bid specifications shall require that water supply project elements which constitute ineligible project costs be bid as separate line items in the total bid specifications from water supply project elements which constitute eligible project costs.

8. Bid specifications shall require that each general contractor bidding on the water supply project name the principal subcontractors at the time of his bid submission to the borrower.

N.J. Admin. Code § 7:1A-2.17

As amended, R.1983 d.534, effective 11/21/1983.
See: 15 New Jersey Register 1307(a), 15 New Jersey Register 1940(a).
(a)1: "borrower shall certify that the" inserted; "was initiated" replaced "must have been initiated".
(a)5: "certify that the borrower" inserted; "and meet all statutory requirements" added to ii.
(a)8 and 9 added.
As amended, R.1984 d.232, effective 6/18/1984.
See: 16 New Jersey Register 631(a), 16 New Jersey Register 1479(a).
"Loan conditions" was formerly codified at N.J.A.C. 7:1A-2.18.
Deleted former (a)7 concerning certification of compliance with all applicable laws and regulations; (a)8 and 9 made 7 and 8, "water supply project" replace "rehabilitation project".
Amended by R.1992 d.252, effective 6/15/1992.
See: 24 New Jersey Register 707(a), 24 New Jersey Register 2245(a).
Reference to Division changed to Department.