- (a) Upon approval of an application by the Small Business Loan Committee of the Board of Directors of the Arkansas Development Finance Authority, the President of the Arkansas Development Finance Authority, Vice President of Development Finance, or their designees or members of the Board of Directors of the Arkansas Development Finance Authority, a loan authorization agreement will be issued setting forth the terms and conditions upon which the loan will be insured.
(b)
- (1) No loan authorization shall become effective until the lender has paid the initial insurance premium required in 15 CAR § 71-112.
- (2) Such payment, along with an executed loan authorization, shall indicate the lender's acceptance of the loan authorization.
(c) No loan authorization shall be effective unless a loan insurance agreement as provided in 15 CAR § 71-111:
- (1) Has been executed by the lender and the Arkansas Development Finance Authority; and
- (2) Remains in effect.
(d)
- (1) In the event the president or vice president or their designees reject an application, they will promptly send the lender and prospective borrower a notice, including reasons for the rejection.
- (2) The notice shall include a statement of the borrower's right to appeal the president’s or vice president’s or their designees’ decision to the board.