004-3 Wyo. Code R. § 3-7
(a) Interest rate. The interest rate for any loan under this program shall be a minimum of one percent (1%). The interest rate shall be determined by considering applicable risk factors and the impact of the project.
(b) Subordinate financing. The loan or loan guarantee documents shall require that the State maintain a first priority lien on all collateral, and no subordinate financing may be placed on any collateral securing the loan or loan guarantee without the written consent of the State Treasurer.
(c) Insurance requirements. Insurance requirements shall vary based on the type of project which is the subject of the loan or loan guarantee but, at a minimum, general liability and property insurance shall be required in amounts and with terms that are acceptable to the State Treasurer naming the State as a lien holder. At the sole discretion of the State Treasurer, other types of insurance may be required based on the type of project being financed and/or the property which serves as collateral for the loan or loan guarantee, such as business interruption, flood, earthquake, etc.
(d) Financial covenants. The State Treasurer may require that the loan or loan guarantee documents include financial covenants with which the applicant must comply for the term of the loan or loan guarantee. Such covenants may include standards relating to debt service coverage, debt limitations, net worth, leverage, interest coverage or any other financial metrics determined by the State Treasurer necessary to insure the strength and performance of the applicant.
(e) Acceleration upon closure of facility or relocation outside the State. The loan documents may provide that, if the applicant should decide to close or downsize the facility or operation which is the subject of the project or relocate such facility or operation outside the State of Wyoming prior to maturity of the loan (or if the actions of the applicant indicate that applicant intends to so close, downsize or relocate the facility or operation) then, the outstanding balance of the loan shall be immediately due and payable including all interest accrued to the date of such payment and any and all fees and expenses due and owing. If the State has guaranteed financing pursuant to this large project program, the guarantee documents shall provide that the guarantee shall be null and void as of such decision to close, downsize or relocate the facility or operation (or as of the commencement of any actions indicating such a closure, downsize or relocation).
(f) Commencement of project. The documents shall require that the applicant commence construction of the project within one (1) year after closing of the loan or loan guarantee. If the applicant fails to commence construction within such time period, then the outstanding balance of the loan shall be immediately due and payable including all interest accrued to the date of such payment and any and all fees and expenses due and owing. If the State has guaranteed financing pursuant to this large project program, the guarantee documents shall provide that the guarantee shall be null and void after one (1) year if construction of the project has not commenced.
(g) Other covenants. The State Treasurer may include terms in the documents for the loan or loan guarantee to protect the State's interest, such as (1) escrow accounts, (2) cash sweeps, (3) pledge rights, (4) corporate approval rights, (5) acceleration rights for facility closure or downsizing, failure to meet job creation and tax base requirements and failure to continue to satisfy any requirements necessary to qualify for eligibility for the large project program and (6) other mechanisms the State Treasurer deems appropriate.
(h) Private funds. Prior to closing a loan or loan guarantee, an applicant must certify to the State Treasurer that the applicant has committed private funds in an amount which is at least three (3) times the requested loan or loan guarantee and that such private funds are being spent on buildings, equipment and direct project infrastructure. The State Treasurer, at his or her discretion, may require additional information, documentation, escrow of funds, implementation of processes and procedures or any other reasonable materials or terms, to evidence this commitment of private funds.
(i) Collateral. Based on the appraisals and information provided by the applicant for the collateral securing the loan or loan guarantee, the State Treasurer shall determine if such collateral is adequate based on the requirements of Sections 2(e)(i), 2(e)(vi), and 2(e) (viii) of the Act. The State Treasurer shall secure a first security interest in the entire project which is the subject of the financing and must approve any subsequent financing which is to exist at the time of closing or which applicant enters into after closing of the loan or loan guarantee. If the applicant shows good cause why the applicant cannot grant the State a first security interest in the entire project, then the applicant must propose substitute collateral which the State Treasurer deems to be sufficient to repay the loan or loan guarantee in the case of a default and in which the State Treasurer's interest is before the interest of any and all other lenders in such substitute collateral (if such other lenders have been previously approved by the State Treasurer as provided in Section 7(b) above).
(j) Guarantees by affiliates. The State Treasurer may determine that upon examination and review of applicant's due diligence materials and the proposed collateral for the loan or loan guarantee, that additional collateral in the form of loan guarantees from affiliates of the applicant may be necessary to provide sufficient security to the State for repayment of the loan or loan guarantee.
004-3 Wyo. Code R. § 3-7
Adopted, Eff. 4/7/2015.