Conditions for loan approval
Sec. 9. A loan under this chapter is subject to the following
conditions:
(1) The qualified entity may use the loan only for the purchase
of new or used firefighting and other emergency equipment or
apparatus, and legal and other incidental expenses that are
directly related to acquiring the equipment or apparatus.
(2) The repayment period may not exceed seven (7) years.
(3) The amount of the loan may not be less than ten thousand
dollars ($10,000).
(4) The interest rate is to be set by the board of finance at a rate
that is not more than two percent (2%) below the prime bank
lending rate prevailing at the time the loan is approved.
(5) All interest reverts to the revolving fund created by this
chapter.
(6) The loan must be repaid in installments, including interest
on the unpaid balance of the loan.
(7) The repayment of principal may be deferred for a period not
to exceed two (2) years.
(8) The repayment of the loan may be limited to a specified
revenue source of the qualified entity. If the repayment is
limited, the repayment:
(A) is not a general obligation of the qualified entity; and
(B) is payable solely from the specified revenue source.
(9) If prepayment of the loan is made, a penalty may not be
charged.
(10) The office shall have a security interest in the purchased
firefighting or other emergency equipment or apparatus for the
balance of the loan, accrued interest, penalties, and collection
expenses.
(11) Any other conditions that the office considers appropriate.
As added by P.L.70-1995, SEC.5.
Last modified: May 27, 2006