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§ 7:24A-3.3. Execution of a loan award agreement
(a) The Department shall prepare and transmit duplicate copies of the loan award agreement to the applicant.
1. The applicant shall execute such duplicate copies of the loan award agreement and return them within 30 calendar days after the date of the Department's transmittal letter. The Department may, in its discretion, extend the time for execution. The loan award agreement of a local government unit applicant shall be signed by a person authorized by written resolution or ordinance to obligate the applicant to the terms and conditions of the loan award agreement. The loan award agreement shall be signed by, or on behalf of, each co-applicant, if any.
2. The loan award agreement shall set forth the terms and conditions of the loan, including an estimated loan repayment schedule, approved project scope, budget, approved project costs, and the approved commencement and completion dates for the project or major phases thereof.
3. The loan award agreement is deemed to incorporate all requirements, provisions, and information in documents or papers submitted to the Department during the application phase of the project.
4. After the Department has executed the loan award agreement, it shall transmit a copy of the executed loan award agreement to the applicant, and co-applicant, if any.
5. The Department shall not execute the loan award agreement if the applicant is in default on any State loan.
(b) The loan award shall become effective upon execution of a loan award agreement by the Department and the applicant, and shall constitute an obligation of the Fund in the amount and for the purposes stated in the loan award agreement.
(c) The loan award shall not commit or obligate the Department to award any continuation loan to cover cost overruns for any project. Cost overruns for any project or portion thereof are solely the responsibility of the borrower.
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