Loan Agreements

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  1. Any loan agreement may include such provisions as may be agreed upon by the authority and the association and shall include, in substance, the following:
    1. The amount of the loan as determined by the authority; and
    2. An agreement by the association to:
      1. Proceed expeditiously with and complete payment of the claims in accordance with the loan agreement approved pursuant to this part;
      2. Pledge any assessments and make payments according to the repayment schedule established by the authority; and
      3. Establish and maintain adequate financial records for the payment of claims, cause to be made an annual audit of the financial records and transactions covering each fiscal year in accordance with generally accepted accounting principles, and furnish a copy of such audits to the comptroller of the treasury.
  2. In addition to the foregoing, the authority shall administer loans made under this part only after it has determined that the association has the ability to repay the amount loaned.


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