Chapter 6.24
BOROUGH REVOLVING LOAN PROGRAM
Sections:
6.24.020 Source of loan funds.
6.24.030 Authorized loan agent and duties.
6.24.040 Minimum program requirements.
6.24.005 Established.
The mayor is authorized to establish and maintain revolving loan programs to further economic and community development activities and projects that are found to be in the public interest or interest of the public, administered in accordance with this chapter and that are not inconsistent with law. (Ord. 03-02 § 1, 2003)
6.24.010 Purpose.
The purpose of a revolving loan program is to provide “gap” financing to borough residents or communities to encourage and secure community and individual economic development opportunities, activities or projects by making a source of revenue available for secured loans and upon repayment, the funds are to be returned and remain available for new loans. (Ord. 03-02 § 1, 2003)
6.24.020 Source of loan funds.
A. For purposes of this chapter, the assembly may from time to time identify and authorize revenue for establishing specific revolving loan funds. Such funds must be indicated in the borough’s annual budget consistent with Chapter 6.12 NABC.
B. All loans made under this chapter shall be made out of the specific loan funds identified in NABC 6.24.020(A) and all repayments of any specific loan shall be credited back to the specific loan fund, and subject to the provisions of this chapter, may be reloaned. (Ord. 03-02 § 1, 2003)
6.24.030 Authorized loan agent and duties.
A. The mayor or his designee shall be the borough loan agent or agents and is authorized to make loans to qualified borough residents or communities in accordance with this chapter.
B. The loan agent(s) shall have the power and duty to establish and implement the rules and procedures for all borough revolving loan programs. Such rules and procedures shall include, but are not limited to, the following:
1. Loan applicant qualifications, and required application information and documentation;
2. Prescribing the manner in which loan applications and approvals shall be processed and authorized;
3. Prescribing loan amounts, terms and conditions, and loan agreement requirements;
4. Prescribing or limiting the purposes for which loan may be made;
5. Prescribing the nature of the security to be required before a loan is made.
C. The loan agent is authorized and directed to execute, deliver and sign all loan agreements established pursuant to the minimum program requirements of this chapter, and such additional conditions as may be approved by the mayor or his designee. (Ord. 03-02 § 1, 2003)
6.24.040 Minimum program requirements.
No loan may be issued without meeting the minimum program requirements as specified in this section:
A. Any and all borough revenue utilized by a revolving loan program shall be identified in the annual budget and approved by the assembly;
B. All loans shall be memorialized in a written loan agreement signed by the loan recipient and the mayor or his designee;
C. No loan may issue without a sufficient security agreement, promissory note or guaranteed collateral or repayment agreement, signed by the loan recipient;
D. Loan amounts to individual borough residents and communities shall be determined by the department head administering the loan with the approval of the mayor;
E. Loan term of repayment are limited to no more than one year; unless specifically authorized by the mayor. (Ord. 03-02 § 1, 2003)