| (a) Permissible use of the commitment. The commitment
is to be used to finance the project or purpose identified in the
approved application.
(b) Interest. The interest rate shall be the rate approved
by the Authority and/or lender, if applicable.
(c) Fees. The Authority may approve fees, as it deems
appropriate, on a case-by-case basis. An application fee may be required
at the time of application.
(d) Security. Loans must be secured by collateral of
a type, amount, and value which, when considered with other criteria,
ensures the full repayment of the financial assistance and the solvency
of the Program.
(e) Maturity. The maturity of the commitment may not
exceed thirty years, or the useful life of the collateral, whichever
is less. The maturity shall be negotiated between the Authority, applicant,
and participating lender, if applicable. For commitments secured by
revenues, including sales tax, the amortization period is determined
by the Debt Service Coverage Ratio and with consideration given to
prior volatility in tax/revenue collections. Financing terms are set
forth in the Credit Policy and Procedures.
(f) Reporting requirements to the Authority for a commitment
provided by the Authority may include:
(1) Annual financial audit, and annual employment information,
when applicable;
(2) Quarterly reports summarizing project status and
any anticipated challenges in a format provided by the Authority;
and
(3) If necessary, the Authority may request other reports
or documentation reasonably necessary for an assessment of the recipient's
compliance with the program.
(g) Additional reporting requirements for participation
loans provided by the lender to the Authority at minimum include:
(1) Notification if the loan is placed on a watch list;
(2) Quarterly reports indicating loan balance, repayment
status and any significant change to the recipient's credit and/or
financial position in the format requested by the Authority;
(3) Notification in the event of any breaches or defaults
in the terms, conditions, or covenants of the note, loan agreement
or other loan documents; and
(4) If necessary, the Authority may request other reports
or documentation reasonably necessary for an assessment of the recipient's
compliance with the program, or ability to comply with the program
in the future.
(h) Lender Agreement. The Lender Agreement supplied
by the Authority shall be evidence of the terms agreed upon by the
Authority, recipient, and lender, if applicable, including loan administration,
loan repayment, and any applicable terms, fees, and interest rate
requirements.
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