Effective 28 Aug 1995

640.672. Remittance for improper use of loan, procedure — failure to remit payment, collection, actions — audit of loan, when. — 1. Loans and financial assistance made pursuant to sections 640.651 to 640.686 shall be used only for the purposes specified in an approved application or loan agreement. In the event the department determines that loan or financial assistance funds have been expended for purposes other than those specified in an approved application or loan agreement or any event of default of the loan agreement occurs without resolution, the department director shall take appropriate actions to obtain the return of the full amount of the loan and all moneys duly owed or other available remedies.

2. Upon failure of a borrower to remit repayment to the department within sixty days of the date a payment is due, the director may initiate collection or other appropriate action through the provisions outlined in subsections 4 and 5 of section 640.660 when applicable.

3. When the borrower is an entity not covered under the collection procedures established in section 640.660, the director, with the advice and consent of the attorney general, may initiate collection procedures or other appropriate action pursuant to applicable law.

4. The department may, at its discretion, audit the expenditure of any loan or financial assistance made pursuant to sections 640.651 to 640.686 or the computation of any payments made pursuant to section 640.660.

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(L. 1995 H.B. 414)