Sec.17a-647-7. Repayment, interest

(a) There shall be a written loan agreement between the sponsoring organization and the commission.

(b) The term of the loan shall be no more than two (2) years.

(c) The proceeds of the loan shall be used in accordance with the guidelines for such loans issued by the Secretary of the Department of Health and Human Services of the federal government pursuant to the requirements of Public Law 100-690.

(d) Repayment of the loan shall be the responsibility of the sponsoring organization and shall be made in no more than twenty-four (24) monthly installments and in accordance with the terms of the loan agreement.

(e) Each loan shall bear interest at a rate determined by the commission, which shall not exceed six (6) per cent per year.

(f) The commission may, from time to time, modify the applicable interest rate on new loans. Loans previously awarded shall remain at their existing rate.

(g) A late penalty of five (5) per cent of the amount of any monthly payment shall be charged for any payment received more than fifteen (15) days after the due date of such payment.

(Effective September 27, 1990)