Section 81.124. Additional conditions

In addition to the other requirements in this chapter, the following criteria shall also be met:

(1) The applicant shall remain an eligible applicant as set forth in § 81.111 (relating to eligible applicants) for the entire term of the loan. Failure to do so constitutes a default, which may result in acceleration of payments under the loan, or other penalties that the Authority may impose.

(2) The project shall remain an eligible project as set forth in § 81.112 (relating to eligible projects) for the entire term of the loan. Failure to do so constitutes a default, which may result in acceleration of payments under the loan, or other penalties that the Authority may impose.

(3) The borrower shall accept technical assistance as determined by the Authority.

(4) Applicants, or their principals, shall have credit life insurance in the full amount of the loan or loan guarantee, or shall execute a collateral assignment of a life insurance policy in the full amount of the loan or loan guarantee, naming the Authority as assignee.

(5) An applicant shall have business insurance in an amount sufficient to safeguard business assets and to provide adequate financial protection to the Authority if the applicant suffers a loss due to certain insurable calamities. The Authority shall be named loss payee on the policies.

(6) The sureties and guarantees of the principal and anyone else shall remain in effect for the entire period of the loan.

(7) The applicant shall submit reports and provide information required by the Authority.

(8) There may be no changes of expenditures of loan funds among categories without the prior written approval of the Authority.

The provisions of this § 81.124 adopted February 6, 1987, effective February 7, 1987, 17 Pa.B. 634.

Notation

Authority

The provisions of this § 81.124 issued under section 9 of the Pennsylvania Minority Business Development Authority Act (73 P. S. § 390.9).