Section 31-51ddd-7 - Establishment and maintenance of local reserve fundA community-based organization shall establish, through written governing instruments with a financial institution, a separate local reserve fund into which the department shall deposit funds granted to the community-based organization from the Individual Development Account Reserve Fund and in which the community-based organization shall deposit any funds received for the program from any other source.
(a)Successful completion. When the account holder has deposited sufficient funds in the individual development account to meet the savings goals specified in the approved savings plan, the community-based organization shall pay such amount together with the matching funds, plus interest earned, from the community-based organization's local reserve fund directly to the person or entity providing the goods or services. The community-based organization shall ensure that the expenditure by or on behalf of the account holder is lawful and prudent.(b)Termination by account holder. When an account holder notifies the community-based organization of his desire to terminate his participation in the program prior to completion, the community-based organization shall return to the account holder those funds, plus interest earned, deposited by the account holder in his individual development account and any matching funds, plus interest earned on the matching funds, shall be forfeited. The community-based organization shall be required to return such matching funds, and interest earned, for redeposit in the Individual Development Account Reserve Fund not later than December 31st of each year, except as provided in section 31-51ddd-9 of the Regulations of Connecticut State Agencies.(c)Termination for non-performance. When matching funds from the Individual Development Account Reserve Fund have not been paid out by the community-based organization to a permissible savings goal on behalf of an account holder due to the account holder's failure to make deposits in accordance with the approved savings plan within five years of the date of the establishment of such account, the matching funds from the Individual Development Account Reserve Fund, plus interest earned, shall be returned by the community-based organization to the department within thirty days of the termination of the account for redeposit in the Individual Development Account Reserve Fund.(d)Community-based organization unable to continue program. When the community-based organization operating the certified state IDA program determines that it is unable to continue operating the program, the community-based organization shall immediately contact the account holders and the department and initiate the contingency plan on record with the department. The community-based organization shall also notify the financial institution in which the organization has established the individual development accounts and local reserve fund.Conn. Agencies Regs. § 31-51ddd-7
Adopted effective October 1, 2002