N.Y. Comp. Codes R. & Regs. tit. 18 § 728.3

Current through Register Vol. 46, No. 45, November 2, 2024

Section 728.3 - Loan procedure

(a) Application. In order for a loan application to be accepted by the loan administrator and submitted to the loan committee for review, the following procedural steps must be completed.

(1) The applicant must submit an application for an equipment loan to the loan administrator. The application must be on the application form for the Equipment Loan Fund for the Disabled. The applicant must provide all the information which is requested, including but not limited to, information about the applicant's home residence, social security number, sex, date of birth, nature of the disability, income from all sources, a description of the environmental restrictions present and an explanation of the manner in which the equipment proposed to be purchased must assist in overcoming these restrictions. The applicant must be informed that disclosure of his or her social security number is voluntary and also must be informed of the uses which will be made of such number. The applicant also must be informed that the failure of the applicant to disclose his or her social security number will not in and of itself disqualify the applicant from applying for a loan under the equipment loan fund program.

(2) The application must include a statement from a licensed physician describing the disability and certifying that the applicant meets the definition of disability.

(3) The application must include an original statement from the equipment supplier or vendor, containing a description of the equipment which the applicant proposes to purchase with the loan and a quote of the purchase price. All purchases must be made from suppliers or vendors eligible to conduct business in the State who are not currently disqualified from providing medical care, services or supplies under the medical assistance program.

(4) The applicant must certify that the information contained on the application is true and correct to the best of the applicant's knowledge and that other potential sources of assistance in obtaining the equipment have been pursued and the applicant is neither eligible for, nor can obtain such assistance. Such sources of assistance must include, but not be limited to other sources of credit, Federal and State programs of public assistance and care, vocational rehabilitation programs and private assistance programs.

(b) Loan administrator review. Once received by the loan administrator, each application must be reviewed by the administrator in the sequence received for completeness and accuracy of the information provided. If the information provided establishes that the applicant meets the need criteria for a loan and that the applicant is otherwise eligible for a loan, the application must be accepted and forwarded to the loan committee for review and either approval or disapproval. Those applications which fail to provide sufficient information to determine the applicant's eligibility or which show the applicant to be ineligible must be returned to the applicant by the loan administrator with an explanation of the reason for the rejection.

(c) The loan committee must consider applications in the order in which they are presented to it by the loan administrator.

(d) In the event that the balance of the loan fund is at any time insufficient to provide loans to all those whose applications have been accepted, remaining applications must be held in abeyance until sufficient funds are available. Applicants whose applications are held in abeyance must be informed of the status of their applications.

(e) In addition to repaying the principal amount of the loan the borrower will be responsible for paying interest on any unpaid principal balance such annual rate as the department, in consultation with the Office of the State Comptroller, finds will meet the best interests of the fund and its participants. All loans issued at an assigned interest rate will remain at the rate through the duration of the loan.

(f) Upon approval of the loan application by the loan committee, the loan administrator must notify the applicant of the approval including the amount of the loan, the interest rate and the terms of repayment. The approval letter must be accompanied by a promissory note to be completed and signed by the applicant and the loan administrator.

(g) Review of any determination of the loan administrator or the loan committee may be requested by writing to the commissioner or his designee at the address set forth in the approval or disapproval letter. Reviews must be conducted by an impartial reviewer designated by the commissioner. A written decision of the review must be sent to the applicant within 90 days of the request for the review.

(h) Upon receipt of the promissory note, the loan administrator must issue a two-party check payable to the borrower and the equipment vendor. The borrower must be issued a payment coupon book and instructions relating to the manner to make repayment.

(i) A borrower will be deemed to be in default when any one payment is more than 30 days past due. When any payment is more than 45 days past due, the loan administrator must send the borrower a notice stating that payment is late and should be made immediately. If the borrower does not respond to the notice within 45 calendar days of its issuance, the borrower must be given written notice that (1) the loan is considered in default; (2) the borrower must be given 30 days from the date of the notice to cure the default by making all past due payments; and (3) the borrower's failure to cure the default within the 30-calendar day period must result in the entire loan balance becoming due and owing. The borrower must be notified in writing of the consequences of failing to repay the loan on a timely basis.

(j) In the event of the failure of the borrower to repay the loan balance due and owing, the department will seek to recover the loan balance by such legal or administrative action available to it. Persons who have defaulted on a loan are not eligible for a new loan.

(k) A new loan will not be issued to, or on behalf of, a disabled person if a previous loan made to, or on behalf of, such person remains unpaid.

N.Y. Comp. Codes R. & Regs. Tit. 18 § 728.3