(a) A municipality shall have the power to make loans, which for the purposes of this section shall also include commitments to make loans, temporary loans and advances in anticipation of permanent loans, to any sponsor to provide funds in furtherance of the purposes of this chapter; provided such loans shall be made only after the municipality finds and determines that similar loans are not otherwise available to such sponsors, wholly or in part, from private lenders upon reasonably equivalent terms and conditions.
(b) All loans shall be subject to any rules and regulations of the municipality established by resolution with respect to the making of such loans, and the use of the proceeds of all loans shall be restricted to only those activities which are in furtherance of the purposes of this chapter. Loans shall be evidenced by a note or bond, shall be secured or unsecured, shall be in such amounts, shall bear such date or dates, shall mature at such time or times, may be subject to prepayment and may contain such other provisions consistent with the purposes of this chapter as the municipality shall by resolution determine. Each such loan shall be authorized by a separate resolution of the legislative body of the municipality.
(July Sp. Sess. P.A. 75-2, S. 9, 25.)
Structure Connecticut General Statutes
Chapter 114 - Connecticut City and Town Development Act
Section 7-481. - Declaration of legislative policy.
Section 7-483. - Powers granted to municipalities.
Section 7-484. - Actions to be undertaken by means of separate resolutions.
Section 7-485. - Required municipal findings and determinations. Discretionary referendum.
Section 7-486. - Delegation of powers.
Section 7-487. - Laws governing city and town development.
Section 7-488. - Power of municipality to make loans.
Section 7-489. - Sale, lease, disposition and use of development property.
Section 7-490. - Imposition and collection of facility charges.
Section 7-491. - Issuance of notes and bonds.
Section 7-492. - Capital reserve fund established. Petition. Referendum.
Section 7-494. - Municipal moneys to be deposited in separate accounts. Annual audits.
Section 7-495. - Municipal default or noncompliance. Appointment of trustee.
Section 7-496. - Notes and bonds made securities.
Section 7-497. - Income from notes and bonds tax-exempt; exception.
Section 7-498. - Development property may be tax-exempt.
Section 7-499. - Agreement with bond holders.
Section 7-500. - Exclusive procedure for issuance of bonds.
Section 7-501. - Competitive or public bidding requirements.
Section 7-502. - Applicability of payment bond, prevailing wage and other employee benefit laws.