Sec. 32-64. Eligibility.
Sec. 32-64. Eligibility. Any loan insured by the authority under this chapter shall
(1) be made for a project; (2) be made to a borrower approved by the authority as responsible and creditworthy; (3) in the case of real property, be secured by a mortgage on the
property, be made in a principal amount not exceeding ninety per cent of the cost of the
property, and have a maturity date not later than twenty-five years from the date of the
mortgage; (4) in the case of machinery and equipment, be secured by a security interest
in the machinery and equipment, be made in a principal amount not exceeding eighty
per cent of the cost of the machinery and equipment, and have a maturity not later than
ten years from the date of the loan; (5) contain amortization provisions satisfactory to
the authority; and (6) be in such principal amount and form, and contain such terms,
conditions and provisions with respect to the payment of fees, expenses and other costs,
property insurance, repairs, alterations, payment of taxes and assessments, delinquency
charges, default remedies, additional security and other matters as the authority may
determine. Any contract of insurance executed by the authority under this chapter shall
be conclusive evidence of eligibility for such insurance, and the validity of any contract
of insurance so executed or of an advance commitment to insure shall be incontestable
in the hands of an approved borrower and an insured party from the date of execution
and delivery of the contract or commitment, except for fraud or misrepresentation on
the part of the borrower and, as to commitments to insure, noncompliance with the
commitment or authority rules or regulations in force at the time of issuance of the
commitment.
(P.A. 81-388, S. 5, 12; P.A. 88-265, S. 18, 36.)
History: P.A. 88-265 deleted provisions re initial financing from special obligation rate or bond proceeds, deleted
provisions re lenders' committee and made other technical changes.