N.J. Admin. Code § 19:31A-1.5

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

Section 19:31A-1.5 - Approval process

(a) Only the Members can approve a guarantee, either directly or through delegation.

(b) When the Members approve a request, the minutes of the meeting at which such approval occurs are submitted to the Governor.

(c) The Members' approval is effective 10 working days after the Governor's receipt of the minutes, provided no gubernatorial veto of this action has occurred.

(d) If there has been no veto, a formal commitment letter is issued to the applicant and the bank which will be providing the loan.

1. The commitment letter incorporates the bank's commitment, and contains all terms, conditions and collateral required by the Authority.

2. Except for the Structured Finance Program, usually, life insurance on the applicant's principal officer(s) is required in an amount equal to the Authority's guarantee. The life insurance must name the Authority as collateral assignee.

3. Except for the Structured Finance Program, personal guarantees of owners of 10 percent or more of the applicant are usually required, and there may be a requirement for collateral apart from the applicant's collateral to secure the personal guarantees.

(e) When the commitment letter has been accepted by the applicant and the bank, and returned to the Authority, a list of closing instructions is mailed to the attorneys for the applicant and bank.

(f) When all required documentation is prepared, in form and content satisfactory to the Authority, a loan closing is scheduled and the guarantee is delivered to the lender.

N.J. Admin. Code § 19:31A-1.5

Amended by R.1995 d.435, effective 8/21/1995.
See: 27 N.J.R. 2377(a), 27 N.J.R. 3216(a).
Amended by R.2005 d.274, effective 8/15/2005.
See: 37 N.J.R. 1714(a), 37 N.J.R. 3058(a).
Rewrote (a) and (d).
Amended by R.2009 d.38, effective 1/20/2009.
See: 40 N.J.R. 5954(a), 41 N.J.R. 638(a).
In (d)2 and (d)3, deleted "Angel Investor Program guarantee and the" preceding "Structured".

Recodified from 19:31-2.5 56 N.J.R. 807(a), effective 5/6/2024