640.672. Remittance for improper use of loan, procedure--failure to remit payment, collection, actions--audit of loan, when.
Remittance for improper use of loan, procedure--failure to remitpayment, collection, actions--audit of loan, when.
640.672. 1. Loans and financial assistance made pursuant to sections640.651 to 640.686 shall be used only for the purposes specified in anapproved application or loan agreement. In the event the departmentdetermines that loan or financial assistance funds have been expended forpurposes other than those specified in an approved application or loanagreement or any event of default of the loan agreement occurs withoutresolution, the department director shall take appropriate actions toobtain the return of the full amount of the loan and all moneys duly owedor other available remedies.
2. Upon failure of a borrower to remit repayment to the departmentwithin sixty days of the date a payment is due, the director may initiatecollection or other appropriate action through the provisions outlined insubsections 4 and 5 of section 640.660 when applicable.
3. When the borrower is an entity not covered under the collectionprocedures established in section 640.660, the director, with the adviceand consent of the attorney general, may initiate collection procedures orother appropriate action pursuant to applicable law.
4. The department may, at its discretion, audit the expenditure ofany loan or financial assistance made pursuant to sections 640.651 to640.686 or the computation of any payments made pursuant to section640.660.
(L. 1995 H.B. 414)