Connecticut Administrative Code
Title 17 - Public Assistance and Welfare Services
606a - An Assistive Technology Revolving Fund
Section 17-606a-6 - Loan administration
Universal Citation: CT Reg of State Agencies 17-606a-6
Current through September 9, 2024
(a) Subsequent to a Request for Proposal, the Department shall contract with a fiduciary agent to review completed applications, review proposed loan terms and conditions, approve or deny loans, disburse loan proceeds, and collect installment payments.
(b) Pre-Approved applications
(1) Upon receipt of
pre-approved applications:
(A) The fiduciary
agent shall verify an applicant's come. Documentation verifying income shall be
maintained and made available, as needed, for appeals by applicants or upon
request by the Commissioner.
(B)
The fiduciary agent shall ensure that a credit check is performed on the
prospective borrower by an acceptable credit reporting agency and may charge
the prospective borrower a fee to cover the cost of obtaining such report.
Credit reliability shall be a factor in loan approval.
(2) Upon application approval, the fiduciary
agent shall provide low-interest loans to individuals for approved assistive
technology as specified in the assistive technology plan.
(3) All loans provided through the fiduciary
agent shall comply with all applicable State and Federal Truth-In-Lending and
Disclosure and Consumer Protection laws.
(4) Except as may be agreed to by the
Commissioner, all forms used in the administration of the loan fund shall be
those prescribed and/or approved by the Commissioner.
(5) All loans made though the fiduciary agent
shall be made without regard to race, color, religious orientation, sexual
orientation, or physical or mental disability.
(6) The interest rate for all loans under
this program shall range from two percent annual percentage rate to the prime
rate, as published daily in the business section of the Wall Street Journal.
The interest rate shall be calculated using standard amortization
tables.
(7) The maximum period of
time for which each loan is written under this program shall be up to five
years or the expected life of the assistive equipment, whichever is
less.
(8) Each loan repayment
schedule and/or interest rate shall be based upon the amount of funds
requested, the individual's available discretionary income, as determined by
the peer counselor and verified by the fiduciary agent, and the anticipated
life of the equipment.
(9) Requests
for interest rate reductions or term extensions shall be reviewed by the
advisory committee and shall include copies of calculations and working papers
to justify the need for approval of the request.
(10) There shall be no maximum or minimum
loan amount. Such amounts shall be based on an individual's ability to pay as
set forth in Section
17-606a-5(b)
(2).
(11) The fiduciary agent shall
provide the borrower with notice of all loan decisions. Such notice shall
outline the terms and conditions of the loan and shall state that the loan is
being provided through a program administered by the Commissioner.
(12) If the borrower accepts the terms and
conditions of the commitment letter, the fiduciary agent and the borrower shall
then execute the required loan documents within five business days.
(13) All disbursements made under this
program shall be made through an Administrative Bank Account which requires the
signature of one authorized officer or employee of the fiduciary agent on all
checks.
(14) All disbursements
shall be issued with joint endorsement to the assistive equipment vendor and
individual borrower.
(15) The
fiduciary agent may receive compensation in exchange for administration of the
loan program including receipt, processing and approval of loan applications,
and disbursement of and collection of funds, including late fees. All such
compensation may be included in the principal loan amount.
(16) All costs and/or fees, including those
for legal expenses, placing of liens, recovery of equipment, or those related
to loan default, shall be the responsibility of the borrower and may be added
to the cost of the loan.
(c) Denied Applications
When the fiduciary agent receives a recommendation from a peer counselor to deny a loan or the fiduciary agent denies a loan and the loan applicant appeals that decision, the fiduciary agent shall, at the applicant's expense, secure a credit check and necessary income information which shall be forwarded to the advisory committee at its request.
If the fiduciary agent elects to review a denied application which has not been appealed by the loan applicant, the review shall be at the fiduciary agent's expense.
Disclaimer: These regulations may not be the most recent version. Connecticut may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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