Sec.8-388-8. Contract for financial assistance

(a) Following application approval, the Commissioner shall request that the State Bond Commission provide financial assistance in the form of a grant, loan or any combination thereof.

(b) Following approval by the State Bond Commission pursuant to the provisions of Section 3-20 of the Connecticut General Statutes, the State, acting by and through the Commissioner, may enter into a contract(s) with a municipality for financial assistance in the form of a grant, loan or any combination thereof, in an amount not to exceed the total cost of the development as approved by the Commissioner.

(c) Such contract(s) shall include, but not be limited to the amount of the financial assistance to be provided and the rights and obligations of the parties under the contract(s).

(d) If a municipality is unable to repay a loan, the Commissioner may, at his discretion, adjust the interest rate and terms and conditions of the loan to facilitate repayment, but in no case shall the term of the loan exceed fifty (50) years.

(e) A lien shall be filed on all property for which the State has provided financial assistance. The Commissioner may subordinate the State's lien if the level of State financial assistance so warrants. This provision may be waived if the Commissioner determines that such waiver is in the best interest of the State.

(Effective November 30, 1990)