Current through Register Vol. 43, No. 52, December 26, 2024
(a) Any
Kansas partnership fund loan agreement may be terminated by the secretary in
whole or in part at any time if a loan recipient or pending loan recipient
fails in a material way to comply with the terms and conditions of a loan or to
take adequate corrective actions while under a suspension.
(1) Written notice of the proposed
termination shall be provided by the secretary which shall include:
(A) Notification that the loan will be
terminat-ed;
(B) an explanation of
the reason or reasons for termination proceedings;
(C) the date by which the loan recipient or
pending loan recipient must respond to the notification; and
(D) an explanation of the appeal procedure.
(2) The loan recipient
or pending loan recipient shall have 30 calendar days from the date of the
notice of proposed termination to respond in writing to the secretary before a
loan is actually terminated. The response shall set forth the proposed actions
to be taken by the loan recipient or pending loan recipient to prevent the
proposed termination action.
(3)
Within 21 calendar days following receipt of a written response or the
expiration of the 30-day response time, whichever occurs first, the recipient
or prospective recipient shall be notified, in writing, as to whether the
secretary will proceed with termination and of the basis for this decision.
(4) Within 30 calendar days of the
date of the decision, the loan recipient or pending loan recipient may file an
appeal, which shall be in the form of a written resolution to the secretary of
commerce adopted by the appropriate governing body.
(5) Upon the expiration of the 30-day period
provided in paragraph (4):
(A) the loan may
be terminated by the secretary if no additional appeal has been made; or
(B) the appeal may be reviewed and
a final decision may be issued by the secretary on termina-tion.
(b) A loan may be
terminated for convenience when the secretary of commerce and the loan
recipient or pending loan recipient mutually agree, in writing, that any
further expenditure of loan funds is not warranted or will not be beneficial
for the designated project. In such cases, the loan may be terminated in whole
or in part, and the following conditions shall apply.
(1) The loan recipient or pending loan
recipient shall not incur any new obligations for the loan funds after the
effective date of termination and shall cancel as many outstanding obligations
as possible.
(2) Full credit shall
be allowed for any non-cancellable obligations properly incurred prior to
termination.
(3) An agreement
between the secretary of commerce and the loan recipient or pending loan
recipient shall be reached regarding:
(A) the
effective date of termination;
(B)
in the event of partial termination, the portion to be terminated; and
(C) all other termination
conditions.
(c) Upon formal termination of any loan, an
encumbrance cancellation shall be issued by the secretary in the amount of any
unused loan funds.
(d) The loan
recipient or pending loan recipient shall be responsible for all necessary and
appropriate actions to allow the secretary of commerce to properly document
formal loan termination.
(e) Upon
termination, the loan may be foreclosed and any loan principal and accrued
interest may be declared to be payable on demand.