N.J. Admin. Code § 19:31B-1.5

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

Section 19:31B-1.5 - Approval process

(a) Only the Members can approve a direct loan, 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.

1. The commitment letter contains all terms, conditions, and collateral required by the Authority. As applicable, direct loans are subject to the Authority's affirmative action requirements, P.L. 1979, c. 203 (N.J.S.A. 34:1B-5.4), and prevailing wage requirements, P.L. 2007, c. 245 (N.J.S.A. 34:1B-5.1).

2. With the exception of the New Jersey Growth Fund, the Edison Innovation Angel Growth Fund, the Edison Innovation VC Growth Fund, the Edison Innovation Growth Stars Fund, and the Brownfields Loan 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 a collateral assignee.

3. With the exception of the New Jersey Growth Fund, the Edison Innovation Angel Growth Fund, the Edison Innovation VC Growth Fund, the Edison Innovation Growth Stars Fund, and the Brownfields Loan 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.

4. For the Brownfields Loan Program, applicants are required to:

i. As a condition to closing:

(1) Provide documentation of owner equity equal to a minimum of 10 percent of the appraised value of the brownfield site in a remediated state; and

(2) Demonstrate site control, which includes the ability to perform the remediation and redevelopment projects, grant a lien on the brownfield site as collateral to the Authority if applicable, and record the deed restriction in (d)4iii below.

ii. Upon closing, record a deed restriction that requires that for 10 years after completion of the remediation project, any redevelopment project on the brownfield site shall be consistent with the proposed use and the factors considered to determine eligibility, rate of interest, or other benefits under the Brownfields Loan Program.

iii. Ensure that the Authority's affirmative action and prevailing wage requirements shall apply to the remediation project and the redevelopment project.

iv. Prior to final disbursement, provide evidence that the remediation project is completed. There shall be no requirement for the applicant to complete the redevelopment project.

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

(f) When all required documentation is prepared, in form and content satisfactory to the Authority, a loan closing is scheduled and the funds are made available to the applicant.

N.J. Admin. Code § 19:31B-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)2 and 3.
Amended by R.2008 d.90, effective 4/7/2008.
See: 40 N.J.R. 110(a), 40 N.J.R. 1928(a).
In (d)2 and (d)3, inserted "and the Edison Innovation R&D Fund".
Amended by R.2011 d.195, effective 7/18/2011.
See: 43 N.J.R. 955(a), 43 N.J.R. 1602(b).
In (d)2 and (d)3, substituted ", the Edison Innovation Angel Growth Fund, the Edison Innovation VC Growth Fund, and the Edison Innovation Growth Stars Fund" for "and the Edison Innovation R&D Fund".
Amended by R.2019 d.111, effective 10/7/2019.
See: 51 N.J.R. 820(a), 51 N.J.R. 1537(a).
In (d)1, inserted a comma following "conditions" and inserted the second sentence; in (d)2 and (d)3, deleted "and" preceding "the Edison", and inserted "and the Brownfields Loan Program,"; and added (d)4.

Recodified from 19:31-3.5 56 N.J.R. 807(a), effective 5/6/2024