If the commissioner determines that (i) a borrower, or a substantial owner thereof, has made a misrepresentation to the city regarding compliance with child support orders, or (ii) a borrower on more than one occasion has failed to comply with child support withholding notices, after receiving notice of noncompliance from the city, the commissioner shall notify that borrower that the borrower, and the substantial owner thereof, shall be barred from receiving any additional city loans or grants for a period of three years. The borrower shall have the opportunity to seek reconsideration of such ineligibility by submitting to the city sufficient written evidence that (1) the noncomplying substantial owner is no longer affiliated in any way with the borrower; or (2) the formerly noncomplying substantial owner no longer has any outstanding child support arrearages, as evidenced by a certified court order or official clerk's records that no support is due and owing; provided that, where the ineligibility is based on a misrepresentation, such payment in full shall not be reason to suspend ineligibility unless the commissioner also determines that such misrepresentation was inadvertent; or (3) the substantial owner was not an obligor under a court- ordered child support arrearage at the time of the alleged misrepresentation.
(Added Coun. J. 2-7-96, p. 15393; Amend Coun. J. 7-29-98, p. 75051, § 9)