17-6-505. Rulemaking authority. The department shall adopt rules to implement the provisions of this part, including rules:
     (1) determining the amount of interest and the method of computation and payment of interest charged to recipients of job investment loans and specifying amortization schedules and other terms and conditions for job investment loans as necessary. The rate of interest charged on a loan may not be less than the prevailing market rate.
     (2) establishing criteria for determining nonperformance and declaring default for a job investment loan;
     (3) specifying security and collateral requirements that must be met as a condition of receiving a job investment loan;
     (4) encouraging financial institutions to participate to the greatest extent possible in the financing of job investment projects;
     (5) requiring that the job investment loan may not exceed the funding provided by private lenders and that at least one private lender must be a financial institution. The board shall secure the most favorable collateral position possible on any job investment loan.
     (6) establishing appropriate loan loss reserves; and
     (7) providing for an application process and a loan review process that:
     (a) incorporate the funding criteria adopted by the department to implement the federal community development block grant program pursuant to 90-1-103(5);
     (b) minimize the amount of Job Investment Act funds required; and
     (c) require financial institution review and contingent approval of the project before Job Investment Act funds are committed.

     History: En. Sec. 5, Ch. 559, L. 1995.