[§211D-5]  Provisions relating to capitalaccess loan.  (a)  Except as otherwise provided by this chapter, thedepartment may not determine the recipient, amount, or interest rate of acapital access loan or the fees or other requirements related to the loan.

(b)  A loan is not eligible to be enrolledunder this chapter if the loan is for:

(1)  Construction or purchase of residential housing;

(2)  Simple real estate investments, excluding thedevelopment or improvement of commercial real estate occupied by the borrower'sbusiness or organization;

(3)  Refinancing of existing loans not originallyenrolled under this chapter; or

(4)  Inside bank transactions, as defined by thedepartment.

(c)  The borrower of a capital access loanshall apply the loan to working capital or to the purchase, construction, orlease of capital assets, including buildings and equipment used by the businessor nonprofit organization.  Working capital uses include the cost of exporting,accounts receivable, payroll, inventory, and other financing needs of thebusiness or organization.

(d)  A capital access loan may be sold on thesecondary market under conditions as may be determined by the department.

(e)  When enrolling a loan in the program, aparticipating financial institution may specify an amount to be covered underthe program that is less than the total amount of the loan. [L 2000, c 290, ptof §2]