N.J. Admin. Code § 19:31J-1.10

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

Section 19:31J-1.10 - Approval process for financial assistance

(a) Only the members of the Authority can approve financial assistance from the Fund, unless the authority to approve certain types of transactions has been expressly delegated by the members to Authority staff.

(b) When the members approve financial assistance, 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, or if Authority staff has rendered its approval under delegated authority, a formal commitment letter, notice of approval of financial assistance shall be issued to the applicant.

1. The notice of approval shall contain all terms, conditions and collateral required by the Authority and in the case of a loan may include, among other things, that:

i. Life insurance on the applicant's principal officer(s) is required in an amount equal to the Authority's financial assistance. The life insurance must name the Authority as collateral assignee; and

ii. Personal or corporate guarantees of owners of 10 percent or more of the applicant are required, and there may be a requirement for collateral apart from the applicant's collateral to secure the guarantees, based on the amount to be loaned.

(e) Within 120 calendar days of receipt of the notice of approval of financial assistance, an applicant shall submit to the Authority an executed contract for the remediation upgrade and/or closure activities for which the financial assistance was approved. The contract shall indicate the nature and scope of the work to be performed, cost estimates of the work, and, as available, proofs of the actual costs of all work performed. Failure to submit an executed contract within the time provided, without good cause, shall constitute grounds for alteration of the applicant's priority ranking for the awarding of financial assistance.

(f) When the notice of approval has been accepted by the applicant and returned to the Authority, a list of closing instructions shall be mailed to the applicant or attorney for the applicant.

(g) When all required documentation is prepared, in form and content satisfactory to the Authority, a closing for financial assistance shall be scheduled and the funds made available to the applicant, subject to any preconditions to disbursement imposed thereon by the Authority.

N.J. Admin. Code § 19:31J-1.10

Amended by R.2000 d.297, effective 7/17/2000.
See: 32 N.J.R. 1705(a), 32 N.J.R. 2602(c).
In (d)1, substituted "in the case of a loan may" for "will" following "Authority and" in the introductory paragraph, and inserted a references to corporate guarantees in ii; in (e), rewrote the first sentence; and in (f), inserted "applicant or" preceding "attorney".
Recodified from N.J.A.C. 19:31-11.8 and amended by R.2010 d.285, effective 12/6/2010.
See: 42 N.J.R. 2019(a), 42 N.J.R. 2969(a).
In (a), inserted ", unless the authority to approve certain types of transactions has been expressly delegated by the members to Authority staff"; in the introductory paragraph of (d), inserted "or if Authority staff has rendered its approval under delegated authority,"; and in (g), inserted ", subject to any preconditions to disbursement imposed thereon by the Authority". Former N.J.A.C. 19:31-11.10, Attorney General review, recodified to N.J.A.C. 19:31-11.12.

Recodified from 19:31-11.10 56 N.J.R. 807(a), effective 5/6/2024