Sec. 7-488. Power of municipality to make loans.
Sec. 7-488. Power of municipality to make loans. (a) A municipality shall have
the power to make loans, which for the purposes of this section shall also include commitments to make loans, temporary loans and advances in anticipation of permanent loans,
to any sponsor to provide funds in furtherance of the purposes of this chapter; provided
such loans shall be made only after the municipality finds and determines that similar
loans are not otherwise available to such sponsors, wholly or in part, from private lenders
upon reasonably equivalent terms and conditions.
(b) All loans shall be subject to any rules and regulations of the municipality established by resolution with respect to the making of such loans, and the use of the proceeds
of all loans shall be restricted to only those activities which are in furtherance of the
purposes of this chapter. Loans shall be evidenced by a note or bond, shall be secured
or unsecured, shall be in such amounts, shall bear such date or dates, shall mature at
such time or times, may be subject to prepayment and may contain such other provisions
consistent with the purposes of this chapter as the municipality shall by resolution determine. Each such loan shall be authorized by a separate resolution of the legislative body
of the municipality.
(July Sp. Sess. P.A. 75-2, S. 9, 25.)