Section 17-606a-6 - Loan administration(a) Subsequent to a Request for Proposal, the Department shall contract with a fiduciary agent to review completed applications, review proposed loan terms and conditions, approve or deny loans, disburse loan proceeds, and collect installment payments.(b)Pre-Approved applications(1) Upon receipt of pre-approved applications:(A) The fiduciary agent shall verify an applicant's come. Documentation verifying income shall be maintained and made available, as needed, for appeals by applicants or upon request by the Commissioner.(B) The fiduciary agent shall ensure that a credit check is performed on the prospective borrower by an acceptable credit reporting agency and may charge the prospective borrower a fee to cover the cost of obtaining such report. Credit reliability shall be a factor in loan approval.(2) Upon application approval, the fiduciary agent shall provide low-interest loans to individuals for approved assistive technology as specified in the assistive technology plan.(3) All loans provided through the fiduciary agent shall comply with all applicable State and Federal Truth-In-Lending and Disclosure and Consumer Protection laws.(4) Except as may be agreed to by the Commissioner, all forms used in the administration of the loan fund shall be those prescribed and/or approved by the Commissioner.(5) All loans made though the fiduciary agent shall be made without regard to race, color, religious orientation, sexual orientation, or physical or mental disability.(6) The interest rate for all loans under this program shall range from two percent annual percentage rate to the prime rate, as published daily in the business section of the Wall Street Journal. The interest rate shall be calculated using standard amortization tables.(7) The maximum period of time for which each loan is written under this program shall be up to five years or the expected life of the assistive equipment, whichever is less.(8) Each loan repayment schedule and/or interest rate shall be based upon the amount of funds requested, the individual's available discretionary income, as determined by the peer counselor and verified by the fiduciary agent, and the anticipated life of the equipment.(9) Requests for interest rate reductions or term extensions shall be reviewed by the advisory committee and shall include copies of calculations and working papers to justify the need for approval of the request.(10) There shall be no maximum or minimum loan amount. Such amounts shall be based on an individual's ability to pay as set forth in Section 17-606a-5(b) (2).(11) The fiduciary agent shall provide the borrower with notice of all loan decisions. Such notice shall outline the terms and conditions of the loan and shall state that the loan is being provided through a program administered by the Commissioner.(12) If the borrower accepts the terms and conditions of the commitment letter, the fiduciary agent and the borrower shall then execute the required loan documents within five business days.(13) All disbursements made under this program shall be made through an Administrative Bank Account which requires the signature of one authorized officer or employee of the fiduciary agent on all checks.(14) All disbursements shall be issued with joint endorsement to the assistive equipment vendor and individual borrower.(15) The fiduciary agent may receive compensation in exchange for administration of the loan program including receipt, processing and approval of loan applications, and disbursement of and collection of funds, including late fees. All such compensation may be included in the principal loan amount.(16) All costs and/or fees, including those for legal expenses, placing of liens, recovery of equipment, or those related to loan default, shall be the responsibility of the borrower and may be added to the cost of the loan.(c)Denied ApplicationsWhen the fiduciary agent receives a recommendation from a peer counselor to deny a loan or the fiduciary agent denies a loan and the loan applicant appeals that decision, the fiduciary agent shall, at the applicant's expense, secure a credit check and necessary income information which shall be forwarded to the advisory committee at its request.
If the fiduciary agent elects to review a denied application which has not been appealed by the loan applicant, the review shall be at the fiduciary agent's expense.
Conn. Agencies Regs. § 17-606a-6