Section 648-110-5 - TERMS AND CONDITIONS OF PARTICIPATIONThe following terms and conditions govern the participation of Municipalities and Borrowers in a PACE Program funded by funds awarded to the State under the federal Energy Efficiency and Conservation Block Grant Program or by any other funds from the Trust for this purpose.
1. PACE Program Design, Implementation and Administration.A. PACE Program Design.(1) Schedule Energy Audit. The proposed Borrower schedules an Energy Audit with a Participating Energy Advisor.(2) Energy Audit. A Participating Energy Advisor conducts an Energy Audit, performing initial testing and generating reports regarding proposed Energy Savings Improvements, their cost, Estimated Useful Life and potential savings, and provides such reports, PACE Program information and PACE Loan application form to the proposed Borrower.(3) Application. The proposed Borrower contacts the Master Provider in the manner designated by the Master Provider from time to time (which may include but is not limited to contact by telephone or online) to begin the application process, supplying sufficient information to enable the Master Provider to obtain the proposed Borrower's Credit Report and lien and debt information and to calculate the contemplated approximate PACE Loan terms. The Master Provider then will send a written notice to the Borrower:(a) explaining what the proposed Borrower must provide in order to complete the application form, including a quote from a Registered Vendor to construct/install specified Energy Savings Improvements; and(b) confirming the specific Energy Savings Improvements the proposed Borrower wishes to have constructed/installed and financed and the maximum PACE Loan amount, term, interest rate and rebate from the Trust potentially available with respect to such Energy Savings Improvements; and(c) providing a Good Faith Estimate (GFE) of the costs related to the proposed PACE Loan in accordance with the Real Estate Settlement Procedures Act (RESPA); and (d) asking the proposed Borrower to advise the Master Provider of the proposed Borrower's preference as to the term of the PACE Loan (five, ten or fifteen years, but not to exceed the average Estimated Useful Life of the Energy Savings Improvement(s)) and the name and location of the branch office of a participating bank or credit union to be used for closing or to make arrangements for an in-home closing. ("Closing Agent").(4) Application Review and Action. Upon receiving a completed PACE Loan application and the other requested materials from the Borrower, the Master Provider reviews the application and materials to determine within thirty (30) days whether the proposed Borrower meets the Underwriting Standards in Section 3 of this Rule.(a) If the proposed PACE Loan is approved, the Master Provider prepares the PACE Agreement, which describes the Energy Savings Improvements and the terms of the PACE Loan, and the PACE Mortgage, using forms prepared by the Trust (collectively, the "PACE Loan Documents"). The Master Provider sends the PACE Loan Documents to the Closing Agent, and notifies the proposed Borrower and the Closing Agent as to how they should coordinate to select the date, time and location of closing which must occur within fourteen (14) days.(b) If the proposed PACE Loan is not approved, the Master Provider shall send written notice of that fact, along with the reason(s) for the denial, to the proposed Borrower.(5) Loan Origination- Initial Disbursement. At the Closing, the Borrower shall execute the PACE Loan Documents. After expiration of the rescission period described in 9A M.R.S.A. § 8-204 the Trust or its agent issues a check or electronic payment to the Borrower in an amount equal to 30% of the PACE Loan Amount not to exceed $5,000.(6) Establishment of PACE Mortgage. Within two (2) business days after the closing, the Closing Agent mails the signed PACE Agreement and PACE Mortgage to the Master Servicer, which promptly records the PACE Mortgage in the appropriate county registry of deeds.(7) Construction/Installation of Energy Savings Improvements. The Registered Vendor constructs and/or installs the Energy Savings Improvements consistent with the Energy Audit. (8) Loan Origination - Mid-project Disbursements. Upon receipt of notice from the Borrower that construction and/or installation of a major component of the Energy Savings Improvements is complete, the Trust or its agent may issue partial or total payment therefor, electronic or otherwise, up to the invoiced amount therefor, to the Borrower or, if directed by the Borrower, to the contractor providing such component.(9) Loan Origination - Final Disbursement. Upon receipt of (i) notice from the Registered Vendor that construction and/or installation of the Energy Saving Improvement is complete; and (ii) notice from the Participating Energy Advisor that it has conducted a test-out procedure verifying that the construction and/or installation of the Energy Savings Improvements meets BPI guidelines and recommendations, the Trust or its agent shall issue payments, electronic or otherwise, to the the Borrower (or, if directed by the Borrower, to the contractor providing the Energy Saving Improvement) for the remaining amount of the PACE Loan.(10) Loan Servicing. Unless the Trust has established an alternative arrangement with a Municipality administering the PACE Program under which the PACE Loan is established, the Master Servicer shall bill monthly PACE Assessments to the Borrower to be paid to the Master Servicer within thirty (30) days of each PACE Assessment invoice. Where the Borrower has failed to timely pay its monthly PACE Assessment, the Master Servicer shall send a notice of mortgagor's right to cure in accordance with the provisions of 14 MRSA § 6111(1), 14 MRSA § 6111(1-A)14 and MRSA § 6111(3). If a PACE Assessment remains unpaid for six (6) months after it becomes delinquent, the Master Servicer may institute collection proceedings through collection agencies and/or through institution of legal proceedings exclusive of foreclosure. Upon payment in full of the PACE Loan and all interest, costs, fees and other charges in connection with the PACE Loan, the Master Servicer, or the Municipality if it is administering its PACE Program, shall record a discharge of the PACE Mortgage at the appropriate registry of deeds.B. PACE Program Implementation. (1) The Loan Origination and Loan Servicing functions contemplated by or required for the PACE Loan Program may be provided by a Master Servicer selected by the Trust or a PACE Municipality, as appropriate, through a competitive proposal process. In the alternative, a PACE Municipality may elect to administer those functions through its employees or a third party agent. (2) The Trust shall maintain and make publicly available a list of Participating Energy Advisors who may conduct Energy Audits of Qualifying Property at the request of a proposed Borrower.(3) The Trust shall maintain a list of Registered Vendors who may construct and/or install Energy Savings Improvements under a PACE Program.C. PACE Program Administration. (1) Cost-Sharing. The Trust shall be responsible for the costs of administration of the PACE Program, which costs may be included in and paid from the PACE Assessments collected on each PACE Loan in accordance with a fee schedule agreed to by the Trust, the Master Provider, the Master Servicer, and the Closing Agent.(2) Fee Schedule. A Municipality that adopts a PACE Ordinance under which the Municipality elects to administer loan origination and servicing functions through its employees or a third party agent shall be entitled to recover these costs from PACE Assessments on the same fee schedule as the Trust. Costs to such Municipalities, however, that exceed the fee schedule established by the Trust shall be the responsibility of the Municipality.95- 648 C.M.R. ch. 110, § 5