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more towns or to corporations formed by 3 or more municipal | | development corporations.__To be eligible as a grantee corporation | | under this fund, the development corporation must meet the criteria | | established in section 1026-K, subsection 2. |
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| | | 4.__Disbursement from fund.__If an application is approved, | | the corporation shall establish a separate loan account for that | | project into which funds are deposited upon receipt from the | | department.__When requesting funds, the corporation shall certify | | that the funds will be used for eligible projects.__The | | department may release this money only when it accepts the | | certification. |
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| | | A.__The corporation shall review applications for financial | | assistance under this section, determine their feasibility | | and make recommendations to the corporation, which must | | approve or reject an application by a majority of votes.__ | | Corporation decisions are final. |
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| | | B.__The corporation shall transfer loan repayments to the | | department on a semiannual basis.__The department shall | | deposit the repayments as follows:__100% of the principal | | and 50% of the interest net of administration charges into | | the fund established under this chapter; and 50% of the | | interest net of administration charges into the General | | Fund. |
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| | | 5. Conflicts of interest.__An officer or employee of the | | corporation may not have any interest in a project financed under | | the fund.__Individuals may not participate in the approval | | process for a project in which they have an interest. |
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| | | 6.__Administrative costs.__The corporation may use interest | | earnings not to exceed 5% of each loan annually to cover | | reasonable administrative and technical assistance costs.__The | | department shall review and approve the corporation's | | administrative expenses on an annual basis.__The department may | | establish by rule, pursuant to subsection 12, reasonable | | administrative fees for administration of the fund and may charge | | the administrative fees and expenses to the fund. |
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| | | 7.__Financing.__Individual loans from the fund may range from | | a minimum of $25,000 to a maximum of $175,000. |
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| | | 8.__Eligible projects.__A project may qualify for assistance | | if adequate financing from other public and private sources is | | not available.__In order to qualify for assistance: |
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| | | A.__The borrower must have committed all reasonably available | | resources to the project; have obtained, or attempted to obtain, | | financial commitments from other |
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