D.__Loan applications may be approved or denied by the board only at a regular or special meeting except as follows:

(1)__Approval of applications for loans may be delegated by the board to a subcommittee of the board containing at least 5 members if an applicant would suffer undue hardship by waiting for the next regular meeting; or

(2)__Approval of applications for loans may be delegated to outside contractors with criteria and terms as provided by the board and approved no less than annually.

All approved loans must be ratified by the board at the board's next regular or special meeting.__All loans recommended for denial by the delegated authority must be acted upon by the board at the board's next regular or special meeting.

Sec. 5. 10 MRSA §375, sub-§1, as enacted by PL 1987, c. 817, §2, is amended to read:

1. Demonstration of purpose of loan. The board may enter into loan agreements with any qualifying borrower, who and exercise all powers of a lender or creditor.__Loan security may include the acquisition, use, management, improvement or disposition of any interest in, or type of, real or personal property, including grant, purchase, sale, borrow, loan, lease, foreclosure, mortgage, assignment or other lawful means, with or without public bidding and also including the assessment of fees, the forgiveness of indebtedness, the receipt of reimbursements for expenses incurred in carrying out its purposes and the expenditure or investment of its funds.__The borrower must demonstrate that:

A. The loan will assist one or more persons with disabilities to improve their independence or become more productive members of the community; and

B. The applicant has the ability to repay the loan.

Sec. 6. 10 MRSA §376, sub-§3, as enacted by PL 2003, c. 99, §2, is amended to read:

3. Transportation assistance. For the purpose set forth in section 377, subject to the limitations set forth in that section. This subsection is repealed June 30, 2005.