Section 648-110-2 - DEFINITIONS1. Board. "Board" shall mean the Efficiency Maine Trust Board established under 35-A M.R.S.A. § 10103 and 5 M.R.S.A. § 12004-G(10-c).2. Borrower. "Borrower" means all of the owners (except any mortgage holder) of any Qualifying Property who have applied and been approved for a PACE Loan.3. BPI. "BPI" means Building Performance Institute, Inc.4. Debt to Income Ratio. "Debt to Income Ratio" means the ratio of the Borrower's Monthly Gross Expenses to the Borrower's Monthly Gross Income, expressed as a percentage.5. Director. "Director" means the Executive Director of Efficiency Maine Trust, appointed pursuant to 35-A M.R.S.A. §10103.6. Energy Audit. "Energy Audit" means an analysis conducted by a Participating Energy Advisor, using such procedures and standards, including any software program for this purpose, approved by the Director, of energy loss in a Qualifying Property to determine the savings to investment ratio and Estimated Useful Life of proposed Energy Savings Improvements.7. Energy Savings Improvement "Energy Savings Improvement" means an improvement to Qualifying Property that is new and permanently affixed to Qualifying Property and that:A. Will result in increased energy efficiency and reduced energy use and: (1) Meets or exceeds applicable United States Environmental Protection Agency and United States Department of Energy Star program or similar energy efficiency standards established or approved by the Trust; or(2) Involves weatherization, including but not limited to, an energy audit, air sealing, insulating, and other energy efficiency improvements and test out, for residential property in a manner approved by the Trust; orB. Involves a Renewable Energy Installation or an electric thermal storage system that meets or exceeds standards established or approved by the Trust.8. Estimated Useful Life. "Estimated Useful Life" means longest useful life (not to exceed 20 years) of any Energy Savings Improvement as stated in the International Association of Certified Home Inspectors, Inc. (InterNACHI) "Estimated Life Expectancy Chart" attached hereto as Appendix A.9. Master Provider. "Master Provider" means anyone who originates PACE Loans under a PACE Program or a Municipality or its agent that administers its PACE Program.10. Master Servicer. "Master Servicer" means anyone who services PACE Loans under a PACE Program or a Municipality or its agent that administers its PACE Program.11. Monthly Gross Expenses. "Monthly Gross Expenses" means the sum of the following monthly charges owed by the Borrower:A. The monthly mortgage payment, taxes, property insurance, homeowners' association or condominium fee payments and assessments whether or not they are included in a mortgage payment, for any property (not just the Qualifying Property). With respect to adjustable rate loans where there is a rate reset scheduled within 120 days after the date of application, the monthly mortgage payment used to determine eligibility will be the greater of (a) the Borrower's current scheduled monthly mortgage payment or (b) a fully amortizing monthly mortgage payment based on the note reset rate using the index value as of the date of the application. With respect to adjustable rate loans that reset more than 120 days after the date of application, the Borrower's current scheduled monthly mortgage payment will be used. B. Any mortgage insurance premiums.C. Monthly payments on all closed-end subordinate mortgages.D. Payments on all installment debts with more than 6 months of payments remaining, including debts that are in a period of deferment or forbearance.E. Monthly payments on revolving or open-end accounts, regardless of the balance. In the absence of a stated payment, the payment will be calculated by multiplying the outstanding balance by 3 percent.F. Monthly payments on a Home Equity Line of Credit (HELOC) using the minimum monthly payment reported on the Credit Report (as defined below). If the HELOC has a balance but no monthly payment is reported, then documentation shall be obtained verifying the payment amount, or the payment will be calculated by multiplying the outstanding balance by 1 percent.G. Alimony, child support and separation maintenance payments with more than 9 months remaining.H. Car lease payments, regardless of number remaining.I. Negative net rental income from all investment properties owned.J. Assessments under the proposed PACE Loan.12. Monthly Gross Income. "Monthly Gross Income" means the Borrower's income amount before any payroll deductions. It includes wages and salaries, overtime pay, commissions, fees, tips, bonuses, housing allowances, other compensation for personal services, Social Security payments, including Social Security and adoption subsidies received by adults on behalf of minors or by minors intended for their own support, and monthly income from annuities, insurance policies, retirement funds, pensions, disability or death benefits, unemployment benefits, rental income and other income.13. Municipality. "Municipality" shall have the same meaning as "PACE Municipality".14. PACE Agreement. "PACE Agreement" means an agreement between the Borrower and the Program Administrator for the PACE Municipality in which the applicable Qualifying Property is located that evidences a PACE Loan and authorizes the creation of a PACE Mortgage on the Qualifying Property.15. PACE Assessment "PACE Assessment" means an assessment made by the Program Administrator against Qualifying Property to repay a PACE Loan, specifically, an amount calculated by the Master Provider to permit Borrower to repay the PACE Loan in periodic installments (the frequency of which shall be as provided in Section 4(A) (1) (i) of this rule) of principal and accrued interest reflecting amortization of the principal amount of the PACE Loan over the PACE Loan's term at the PACE Loan's interest rate.16. PACE Loan. "PACE Loan" means a loan, secured by a PACE Mortgage, made pursuant to a PACE Program to fund Energy Savings Improvements for terms of five, ten or fifteen years, to be determined by the Borrower as provided in the Underwriting Standards in Section 2 below, bearing interest at rates the Board determines from time to time based on factors including the availability and cost of funding for PACE Loans, performance of PACE Loans and promoting availability of PACE Loans. Pace loan terms and interest rates are not in be structured to include negative amortization schedules, adjustable rates or balloon payments.17. PACE Mortgage. "PACE Mortgage" means a mortgage securing a PACE Loan.18. PACE Municipality. "PACE Municipality" or "Municipality" includes cities, towns and plantations, except that "municipality" does not include plantations in Title 10, chapter 110, subchapter IV; or Title 30-A, Part 2."19. PACE Ordinance. "PACE Ordinance" means an ordinance adopted by the legislative body of a Municipality for the purpose of participating in a PACE Program.20. PACE Program. "PACE Program" means a program established under 35-A M.R.S.A. §10151et. seg. by a PACE Program Administrator under which property owners can finance Energy Savings Improvements on Qualifying Property.21. PACE Program Administrator. "PACE Program Administrator" means the Trust or a PACE Municipality that has elected to administer one or more of the functions of the PACE Program.22. Participating Energy Advisor. "Participating Energy Advisor" means a person or entity who provides Energy Audits and is qualified to do so as evidenced by having a current certification by BPI.23. Qualifying Property. "Qualifying Property" means real property as defined in Maine Law located in the PACE Municipality.24. Registered Vendor. "Registered Vendor" means a contractor or installer of Energy Saving Improvements who (i) has registered with the Trust, (ii) has provided the Trust with its name, contact information and location, (iii) has provided the Trust with a copy of a certificate of insurance showing that it has at least $500,000 in commercial general liability coverage and workers' compensation liability insurance as required by Maine law; and (iv) meets any certification or similar requirements of the Trust from time to time.25. Renewable Energy Installation. "Renewable Energy Installation" means a fixture, product, system, device or interacting group of devices installed behind the meter at a Qualifying Property, or on contiguous property under common ownership, that produces energy or heat from renewable sources, including, but not limited to, photovoltaic systems, solar thermal systems, biomass systems, landfill gas to energy systems, geothermal systems, wind systems, wood pellet systems and any other systems eligible for funding under federal Qualified Energy Conservation Bonds or federal Clean Renewable Energy Bonds.26. Residential Property. "Residential Property" is defined to mean Qualifying Property, consisting of a residential housing structure located in the State of Maine that contains no more than 4 units, each of which is suitable for occupancy by one or more persons and no more than 15 percent of the area is used in a trade, business or other commercial venture (except rental units in 2 to 4 unit residential properties) and includes a condominium unit, and "manufactured housing" as defined in 30-A M.R.S.A. §4358(1)(A).27. Trust. "Trust" means the Efficiency Maine Trust established in 35-A M.R.S.A. §10103.95- 648 C.M.R. ch. 110, § 2