The Commission may make loans to the Lowell Development and Financial Corporation (established under chapter 844 of the Massachusetts General Laws and hereinafter referred to as the “corporation”) to enable the corporation to provide low interest loans for the preservation, restoration, or development of any property described in section
410cc–32
(d)(1) of this title. The Commission may make any such loan to the corporation only after entering into a loan agreement with the corporation which includes the following terms:
(7)
The corporation may approve any application for a low interest loan which meets the terms and conditions prescribed by the corporation with the approval of the Commission and for which money has been made available to the corporation by the Commission if—
(A)
the prospective borrower furnishes the corporation with the statement described in paragraph (6) of this subsection;
(B)
the corporation determines that such borrower has sufficient financial resources to repay the loan; and
(C)
such borrower satisfies any other applicable credit criteria established by the corporation.
In order to determine whether the corporation has complied with this subsection, the Commission, or such other appropriate person or entity as the Commission may designate, shall conduct an audit at least once every two years of all accounts, financial records, and other information related to loans made under paragraphs (6) and (7) of this subsection. If the Commission determines, after conducting a hearing on the record, that the corporation has substantially failed to comply with this subsection, the outstanding balance of any loan made to the corporation under this subsection shall become payable in full upon the demand of the Commission.