Section 141.309. Department approval

(a) The Department may disapprove loan guarantees or may approve a guarantee for an amount less than requested, for reasons including one or more of the following:

(1) The Department determines that the guarantee in light of the financial condition of the applicant, the viability of the project or the costs of the project, constitutes an unacceptable financial risk.

(2) The requested guarantee amount exceeds one or more of the limitations in this section and § § 141.301—141.308 or in applicable Federal regulations.

(3) Funds are not available in the amount requested.

(4) The performance of the public entity under § § 141.61, 141.62, 141.81, 141.101, 141.102, 141.121—141.125 and 141.141—141.157 is unacceptable.

(5) The activities to be undertaken are ineligible under State or Federal law or regulations.

(b) The Department will notify the public entity in writing that the guarantee has been approved, reduced or disapproved. If the guarantee is reduced or disapproved, the public entity will be informed of the specific reasons for that action. If the guarantee is acceptable, the Department will approve the application of the public entity to HUD for its commitment.

The provisions of this § 141.309 adopted August 21, 1992, effective August 22, 1992, 22 Pa.B. 4313; amended January 20, 2006, effective January 21, 2006, 36 Pa.B. 283. Immediately preceding text appears at serial pages (231106) to (231107).

Notation

Authority

The provisions of this § 141.309 issued under the Community Development Block Grant Entitlement Program for Nonurban Counties and Certain Other Municipalities (35 P. S. § § 1751—1765).

Cross References

This section cited in 12 Pa. Code § 141.301 (relating to purpose); 12 Pa. Code § 141.302 (relating to definitions); 12 Pa. Code § 141.307 (relating to limitations on loan commitments—public entities); and 12 Pa. Code § 141.308 (relating to CDBG requirement).