Connecticut Administrative Code › Title 16a - Planning and Energy Policy › 43 - Business Emergency Relief Loan Program and Small Home Heating Oil Dealers Loan Program › Section 16a-43-2 - Loan application and agreement for small home heating oil dealer loans

Current through July 10, 2024
(a) Application for
			 a small home heating oil dealer loan shall be submitted on Department small
			 home heating oil dealer loan application forms. No application shall be
			 considered unless the exhibits required by such form are furnished.
(b) Upon approval of an application by the
			 Authority or, if the authority so determines, by a committee of the authority,
			 the Department and the borrower shall enter into a small home heating oil
			 Dealer Loan Agreement which shall set forth the terms and conditions required
			 by these regulations and other terms and conditions applicable to the
			 particular loan that the commissioner shall deem appropriate.
(c) Each small home heating oil dealer Loan
			 Agreement shall be effective only upon execution by the Commissioner and the
			 borrower.
(d) The small home
			 heating oil dealer loan Agreement shall provide, without limitation, that the
			 borrower agrees:
(1) That the funds provided
			 will be used exclusively for the purchase of home heating oil;
(2) To provide the Department with such
			 financial and other reports as the Commissioner, in his discretion, may require
			 from time to time;
(3) To notify
			 the Department promptly of any material adverse change in the financial
			 condition or business prospects of the borrower;
(4) To represent and warrant that it has the
			 power and authority to enter into the Loan Agreement and to incur the
			 obligations therein provided for, and that all documents and agreements
			 executed and delivered in connection with the loan will be valid and binding
			 upon the borrower in accordance with their respective terms;
(5) To provide such security for the loan as
			 the Commissioner may deem necessary and appropriate and to execute and deliver
			 all documents in connection therewith;
(6) To provide heating oil to customers whose
			 heating oil bills will be paid for by any governmental agency and to make
			 deliveries in amounts the cost of which can be provided by grants from such
			 governmental agencies to the extent of supplies available to such borrower and
			 within the service area of such borrower;
(7) That the borrower will not assess a
			 surcharge on the price of fuel oil delivered to a customer if the delivery of
			 such fuel oil is in an amount in excess of one hundred twenty-five gallons,
			 except that a surcharge may be assessed if a delivery is made outside the
			 normal service area or the normal business hours of such borrower or
			 extraordinary labor costs are involved in making a delivery;
(8) To the extent the loan is secured by a
			 contract or contracts, to:
(A) Notify the
			 Commissioner of the modification of any provision of a contract which is
			 security for the loan when said modification affects the time or manner of
			 payment, or in any other way substantially affects the contract or the manner
			 of performance of said contract;
(B) Notify the Commissioner of the
			 termination of any part of a contract or the termination of the entire contract
			 by any party to the contract;
(C)
			 Notify the Commissioner of the failure of either party to a contract to perform
			 any of its obligations under such contract.