§ 10 §1100-LL — Duties and powers of authority

1.
Maintenance and review of records.
The authority shall maintain records in the regular course of administration of the program, including a record of loans issued pursuant to section 1100‑JJ and loan guarantee payments issued pursuant to section 1100‑KK, subsection 2 to honor claims on defaulted loans. The authority shall regularly review these records to monitor all the loans issued and identify duplicate applications.
2.
Termination of loan recovery guarantee based on misrepresentation or failure to comply by eligible financial institution.
The authority may terminate any agreement to pay the claim of an eligible financial institution pursuant to section 1100‑KK if the eligible financial institution misrepresents any information pertaining to the loan or fails to comply with any requirements of this section or section 1100‑KK in connection with the claim for the loan.
3.
Termination of loan recovery guarantee based on excess claims.
If the amount expended for loan guarantee payments under section 1100‑KK equals or exceeds 10% of the total of all loans issued, the authority shall immediately cease to approve claims and shall notify the Treasurer of State and each eligible financial institution of the total amount of loan guarantee payments made and that the authority has ceased honoring loan claims.
4.
Recovery of defaulted loans.
The authority, on its own or by contracting with a private entity, shall make reasonable efforts to recover the amount of loan guarantee payments made pursuant to section 1100‑KK, subsection 2. Any funds recovered pursuant to this subsection, less reasonable administrative costs, must be deposited in the Government Shutdown Loan Guarantee Program Fund established in Title 5, section 160.

Legislative History

PL 2025, c. 494, §2 (NEW).