Pennsylvania Code
Title 4 - ADMINISTRATION
Part V - EMERGENCY MANAGEMENT AGENCY
Chapter 113 - VOLUNTEER FIRE COMPANY, AMBULANCE SERVICE AND RESCUE SQUAD ASSISTANCE
GENERAL STANDARDS
Section 113.6 - Loan limitations
Current through Register Vol. 54, No. 44, November 2, 2024
(a) The OSFC is authorized to make loans for the following:
(b) A loan provided under this chapter may not be used for the acquisition of existing facilities. A loan may not be used for operating expenses, nor may it be used to reduce a debt or other obligation issued prior to November 4, 1975. A loan may not be used for payment of fees for the designing or planning of facilities or preparation of application. A loan may not be used for the purpose of investment, reinvestment, or for a purpose other than that which is expressly stated on the loan application, OSFC-VL-1.
(c) The OSFC has the authority to verify the company's volunteer or nonprofit status during the application process or at any time during the term of the loan.
(d) The OSFC may declare an "event of default" against a volunteer company that has received a loan from the OSFC. For the purposes of this subsection, an "event of default" means an act committed by a volunteer company that diverts, misapplies or distributes all or a portion of its loan proceeds to a use, purpose or party not authorized by the OSFC. An "event of default" also consists of events listed in Article VII (Default) of the Agreement for Act 208 Loan Assistance, OSFC-VL-17 and an act which changes or eliminates a volunteer company's volunteer or nonprofit status.
(e) When the OSFC declares an "event of default," it may proceed against the volunteer company in accordance with the default procedures in the Promissory Note, Mortgage, Guarantee or Loan Agreement (OSFC-VL-17) that was executed between the OSFC and the volunteer company.
(f) In addition to the other provisions of this section, a volunteer company is not eligible for a future loan from the OSFC until that volunteer company takes actions or measures deemed necessary by the OSFC to terminate an event of default that the OSFC has declared against it and receives a written notice from the OSFC that the event of default has been terminated.
(g) A volunteer company may have no more than three outstanding loans with the OSFC at a given time. The OSFC may reduce this loan limit if the balance of funds in the Volunteer Loan Companies Fund warrants a reduction.