Connecticut Administrative Code › Title 31 - Labor › 51ddd - Individual Development Accounts Program › Section 31-51ddd-7 - Establishment and maintenance of local reserve fund

Current through July 10, 2024
A 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.