NAC612.683. Repayment of loan; forgiveness of outstanding balance under certain circumstances.

     1. Except as otherwise provided in subsection 3, both principal and interest on a loan made under the program must be repaid to the nonprofit private entity not later than 4 years after the date on which the loan is made. The nonprofit private entity administering the loan must establish a payment schedule and agreement with the borrower. The schedule and agreement must provide that:

     (a) The first year of repayment of a loan is free from interest;

     (b) A loan which is not repaid in full by the end of the first year is subject to an interest rate of 5 percent simple interest per annum; and

     (c) The failure of the borrower to repay the principal and interest on the loan may result in collection proceedings to the extent allowable under the applicable laws and regulations of this State.

     2. Any interest earned by the nonprofit private entity pursuant to subsection 1:

     (a) Must be deposited in a separate account established and maintained by the nonprofit private entity for the purpose of administering loans; and

     (b) Must not be commingled with any other money.

     3. The Administrator may forgive the outstanding balance of a loan if:

     (a) The Administrator determines that the loan was not secured either in whole or in part by fraud or misrepresentation of the borrower;

     (b) The borrower demonstrates an inability to repay the loan; and

     (c) The recovery of the loan would be against equity and good conscience, as determined by the Administrator.

     (Added to NAC by Employm’t Security Div. by R128-09, eff. 4-20-2010)