Current through Register Vol. 54, No. 49, December 7, 2024
Section 113.6 - Loan limitations(a) The OSFC is authorized to make loans for the following: (1) Acquisition of apparatus equipment, ambulances, rescue vehicles, utility or special service vehicles, communication equipment, accessory equipment or protective equipment; construction of new facilities; and modernization of existing facilities.(2) Repair or rehabilitation of apparatus equipment when it has been determined that existing apparatus equipment no longer meets the current standards of the NFPA and when the repair or rehabilitation, or both, of the apparatus equipment will bring it in compliance with NFPA standards in existence at the time of the application.(3) Refinancing a debt incurred through other lending institutions for contracts entered into after November 4, 1975 and used for the purchase of apparatus equipment, for the construction or modernization of facilities, or for the modification of apparatus equipment in order to comply with NFPA standards.(b) A loan provided under this chapter may not be used for the acquisition of existing facilities. A loan may not be used for operating expenses, nor may it be used to reduce a debt or other obligation issued prior to November 4, 1975. A loan may not be used for payment of fees for the designing or planning of facilities or preparation of application. A loan may not be used for the purpose of investment, reinvestment, or for a purpose other than that which is expressly stated on the loan application, OSFC-VL-1.(c) The OSFC has the authority to verify the company's volunteer or nonprofit status during the application process or at any time during the term of the loan.(d) The OSFC may declare an "event of default" against a volunteer company that has received a loan from the OSFC. For the purposes of this subsection, an "event of default" means an act committed by a volunteer company that diverts, misapplies or distributes all or a portion of its loan proceeds to a use, purpose or party not authorized by the OSFC. An "event of default" also consists of events listed in Article VII (Default) of the Agreement for Act 208 Loan Assistance, OSFC-VL-17 and an act which changes or eliminates a volunteer company's volunteer or nonprofit status.(e) When the OSFC declares an "event of default," it may proceed against the volunteer company in accordance with the default procedures in the Promissory Note, Mortgage, Guarantee or Loan Agreement (OSFC-VL-17) that was executed between the OSFC and the volunteer company.(f) In addition to the other provisions of this section, a volunteer company is not eligible for a future loan from the OSFC until that volunteer company takes actions or measures deemed necessary by the OSFC to terminate an event of default that the OSFC has declared against it and receives a written notice from the OSFC that the event of default has been terminated.(g) A volunteer company may have no more than three outstanding loans with the OSFC at a given time. The OSFC may reduce this loan limit if the balance of funds in the Volunteer Loan Companies Fund warrants a reduction.The provisions of this § 113.6 adopted December 23, 1982, effective 12/25/1982, 12 Pa.B. 4333; amended December 18, 1992, effective 12/19/1992, 22 Pa.B. 6019.