Conn. Agencies Regs. § 8-218c-8
The CHDC may use the funds provided pursuant to Sections 8-218a and 8-218b to make loan guarantees on behalf of eligible borrowers for the purpose of insuring the repayment of interim and/or permanent loans. As part of an application for funding under this Section, the Commissioner may require that the CHDC provide documentation, in addition to that required by Section 8-218c-2, which demonstrates that one or more lenders have agreed in writing to participate in the program, describes the terms and conditions of their participation, and certifies that the lending institution will not pay less interest on the State funds deposited as the guarantee than it is paying for other investments of like amount and term.
The CHDC may deposit funds provided pursuant to this Section in an interest bearing account in a financial lending institution approved by the Commissioner for the purpose of guaranteeing loans to eligible borrowers for eligible projects. At no time shall the amount deposited in such an account exceed the outstanding principal balance of the guaranteed loans.
The CHDC shall, upon notification by a lender that a borrower is in default of his or her loan payments, contact the borrower and attempt to develop a repayment schedule which resolves the default to the satisfaction of the lender. If such a repayment schedule cannot be worked out, the CHDC must notify the Commissioner in writing that it has made a payment against a guaranteed loan. It must also document at that time the efforts it made to resolve the default prior to making payment against the loan guarantee.
Conn. Agencies Regs. § 8-218c-8