N.J. Admin. Code § 19:30-6.3

Current through Register Vol. 56, No. 12, June 17, 2024

Section 19:30-6.3 - Bond closing fees

(a) Except as set forth in (a)1 below, for Authority-issued bonds, the fee to be paid at closing is one-half of one percent of the amount of the bond issue up to and including $ 15,000,000; three-eighths of one percent of the amount in excess of the next $ 10,000,000; and one-half of one percent of the bond amount in excess of $ 25,000,000.

1. The fee to be paid at closing for Authority-issued bonds which benefit not-for-profit corporations, as defined by the Internal Revenue Code, and governmental bodies shall be one-half of one percent of the amount of the bond issue, up to and including $ 10,000,000 and one-quarter of one percent of the amount in excess of $ 10,000,000.

2. The fee to be paid at closing for Authority-issued empowerment zone bonds which benefit a project located either in a Federal empowerment zone or enterprise zone community as those terms are defined by the Internal Revenue Code, shall be one-half of the standard bond closing fee as set forth in (a) above.

3. In all instances, except for conduit bond transactions that support multi-jurisdictional, interstate projects, the fees due and payable for conduit bond transactions shall not exceed $ 300,000.

(b) For guaranteed Authority-issued bonds or pari passu guaranteed financing under the Premier Lenders Program, the guarantee fee, to be paid at closing, shall not exceed 50 basis points as determined by the initial amount of the guaranteed portion of the financing in order that the fee percentage will correspond to the percentage guarantee required (for example, a 25 percent guarantee would incur a guarantee fee of 25 basis points, a 50 percent guarantee would incur a guarantee fee of 50 basis points) multiplied by the dollar amount of the guarantee and by the number of years the guarantee is to be in effect. For a guarantee where the Authority's interest is subordinated, the fee to be paid at closing shall be as set forth in this subsection plus 25 basis points. This fee is in addition to the fee described in (a) above if the Authority's guarantee relates to repayment of a bond issued by the Authority.

(c) For guarantees issued under N.J.A.C. 19:31-2.1(b)3, the residual risk guarantee fee to be paid at closing is one-quarter of one percent of the initial amount of the residual risk Authority's exposure in the financing multiplied by the number of years the guarantee is to be in effect.

(d) For direct loans from the Authority, the fee, to be paid at closing, is .875 percent of the loan amount. For direct loans under the Edison Innovation Angel Growth Fund, the Edison Innovation VC Growth Fund, and the Edison Innovation Growth Stars Fund, the fee to be paid at closing is .75 percent of the loan amount. For direct loans under the Small Business Fund, the fee to be paid at closing is .5 percent of the loan amount. For direct loans under N.J.S.A. 34:1B-47 et seq., the fee to be paid at closing is one-half of one percent of the total amount of the direct loan.

(e) For Authority issued taxable bonds, the fee to be paid at closing is one-half of the closing fee set forth in (a) above.

N.J. Admin. Code § 19:30-6.3

Amended by 47 N.J.R. 277(b), effective 1/20/2015

Amended by 55 N.J.R. 1476(a), effective 7/17/2023