N.H. Admin. Code § Bfa 302.03

Current through Register No. 50, December 12, 2024

Section Bfa 302.03 - Secondary Market for Loans by Local Development Organization Program

(a) Applications for a credit enhancement under RSA 162-A:10 shall be made by the local development organization.

(b) Such applications shall provide the following information:

(1) The name and address of local development organization;

(2) A statement of history and mission of local development organization;

(3) A description of form and structure of local development organization;

(4) A statement of support from municipalities served by local development organization;

(5) A financial statement or statements of the local development organization prepared by an independent accountant;

(6) A certification stating compliance by the business or project with the Americans With Disabilities Act and Equal Opportunity Act;

(7) The name and address of the borrower;

(8) The name and address of project(s) involved in the transaction;

(9) The line(s) of business(es) of the borrower;

(10) The background on management of business or project;

(11) A description of principal factors that make the transaction speculative or one of high risk;

(12) A description of all material legal proceedings affecting business or project;

(13) A disclosure of all persons who shall receive, either directly or indirectly, any proceeds of the loan acquisition as compensation for services;

(14) A statement as to the accounting treatment of transaction;

(15) A description of the terms of the proposed loan purchase agreement;

(16) A summary of material terms of financing documents to be acquired including, but not limited to:

a.Loan agreements;

b.Lease agreements;

c.Acquisition agreements;

d.Security agreements; and

e.Guarantee agreements;

(17) A description of local development organization's ability to monitor performance of business or project;

(18) A detailed history of loan performance;

(19) A detailed history of borrower's compliance with all terms of the financing documents;

(20) An identification of primary and secondary sources of repayment by business;

(21) A cash flow analysis;

(22) The copies of professional appraisals of collateral;

(23) The appraisal required by Bfa 301.02(f);

(24) An environmental site assessment if real estate is involved;

(25) The financial statements, prepared by an independent accountant, for the business or project for three years prior to current year;

(26) A certification by each party to the transaction of the following:

a.The local development organization or business entity is duly organized, validly existing and in good standing under the laws of the state;

b.The local development organization or business entity is not in violation of any term of its articles of incorporation or by-laws;

c.The local development organization or business entity is not in violation of any term of any mortgage, loan agreement, or indenture to which it is a party or by which it is bound; and

d.The local development organization or business entity is not in violation of any term of any other agreement, instrument, judgment, decree, order, statute, rule, or governmental regulation;

(27) A detailed analysis of the specific use(s) and purpose(s) to which the local development organization shall apply the proceeds of the loan to be acquired;

(28) A statement identifying the following:

a.The ways the transaction serves a public use and provides a public benefit;

b.The ways the transaction promotes the social welfare and economic prosperity of the area and the general welfare of New Hampshire citizens;

c.The ways the transaction promotes development of business activities, creates or preserves employment opportunities, or protects physical environment; and

d.The ways the transaction supports consistent application of local and regional development plans and policies;

(29) The number of employment positions current, created, preserved and projected;

(30) The number of full-time employees and part-time employees; and

(31) The estimated wage levels of current and projected jobs.

(c) In the event the requested information cannot be provided, a detailed explanation of the reason why the requested information cannot be provided shall be included in said application.

N.H. Admin. Code § Bfa 302.03

(See Revision Note at chapter heading for Bfa 100) #5719, eff 10-13-93