New Mexico Administrative Code › Title 8 - SOCIAL SERVICES › Chapter 16 - CHILD CARE LICENSING › Part 3 - REQUIREMENTS GOVERNING THE CHILD CARE FACILITY LOAN ACT › Section 8.16.3.12 - LOAN TERMS, DOCUMENTS AND ENFORCEMENT

Current through Register Vol. 35, No. 13, July 16, 2024
A. The authority and the eligible applicant
				will enter into an agreement and any other applicable documentation to
				establish the terms and conditions of the loan from the authority. The
				agreement will include the terms of repayment and sanctions available to the
				authority in the event of a default.
B. The board will establish the interest rate
				for loans. The authority will set the rate at the lowest legally permissible
				interest rate. The interest rate shall not change during the term of the loan
				unless refinanced.
C. The agreement
				will contain provisions that require loan recipients to comply with all
				applicable federal, state and local laws and regulations.
D. The agreement will contain a provision
				that the eligible applicant agrees that any contract or subcontract executed
				for the completion of any project shall contain a provision that there shall be
				no discrimination against any employee or applicant for employment because of
				race, color, creed, sex, religion, sexual preference, ancestry or national
				origin. The authority shall not be responsible for monitoring the contracts or
				subcontracts for inclusion of that provision or compliance with it.
E. In order to receive a loan greater than
				$20,000.00 the applicant shall require any contractor of a project to post a
				performance and payment bond in accordance with the requirements of Section
				13-4-18
				NMSA 1978 and its subsequent amendments and successor provisions.
F. The authority will monitor the terms and
				conditions of the agreement in conjunction with the department and will enforce
				all terms and conditions thereof, including prompt notice and collection. The
				authority will take actions as necessary to ensure loan repayment and the
				integrity of the fund.
G. If any
				repayment of a loan is 30 days past due the authority and the department will
				report to each other and to the application committee as to the borrower's then
				current status as it relates to the loan, including licensure status and any
				reported or known violations of applicable laws or rules to which the facility
				is subject and any known change in financial status. If any repayment of a loan
				is 60 days past due the application committee shall develop a workout plan
				taking into account all actions, remedies and sanctions available to the
				department and the authority and will make recommendations to the department
				and the authority as needed to implement the workout plan. Any such workout
				plan and its implementation is in addition to and not instead of the courses of
				actions, remedies and sanctions available separately to the department or the
				authority under the act, these rules or the agreement or in any other manner
				available by law.
H. The department
				will monitor the performance of an eligible applicant under department
				licensure requirements and for programmatic requirements and will make the
				necessary site visits. The authority will not monitor the performance of an
				eligible applicant under department licensure requirements nor for programmatic
				requirements and will not make site visits. The authority will not be
				responsible for any act or omission of the applicant upon which any claim, by
				or on behalf of any person, firm, corporation or other legal entity, may be
				made, arising from the loan or any establishment or modification of the project
				or otherwise.
I. In the event the
				loan recipient defaults, the authority may enforce its rights by suit or
				mandamus and may utilize all other available remedies under state and federal
				law.
J. If an eligible applicant
				that has received a loan ceases to maintain its provider status or ceases to
				provide child care to infants, toddlers and children, the state shall have the
				following remedies available to it:
(1) the
				acceleration of the loan requiring the immediate repayment of all amounts due,
				including all accrued and unpaid interest;
(2) any other remedies available at law or in
				equity.