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The Vermont Statutes Online
Title
10
:
Conservation and Development
Chapter
012
:
VERMONT ECONOMIC DEVELOPMENT AUTHORITY
Subchapter
002
:
MORTGAGE INSURANCE
§
221. Insurance of mortgages
(a) Upon
application of the proposed mortgagee, the Authority may insure mortgage
payments required to repay loans made by the mortgagee for the purpose of
financing the costs of a project, upon such terms and conditions as the
Authority may prescribe; provided, however, that the total principal
obligations of all mortgages insured under this subsection and under subsection
(c) of this section outstanding at any one time shall not exceed $3,500,000.00.
Before insuring any mortgage payments hereunder, the Authority shall determine
and incorporate each of the findings established by this subsection in its
minutes. Such findings, when adopted by the Authority shall be conclusive:
(1) The project
is within the scope of this chapter and will increase or maintain employment
and benefit the economy of the State.
(2) The project
plans comply with all applicable environmental, zoning, planning, and sanitary
laws and regulations of the municipality where it is to be located and of the
State of Vermont.
(3) The mortgage
and the insurance contract will be of public use and benefit.
(4) The
insurance contract will be without unreasonable risk of loss to the Authority.
(5) The
mortgagee is responsible and able to service the mortgage properly.
(6) The
principal obligation of the mortgage does not exceed $10,000,000.00, and does
not exceed 90 percent of the cost of the project.
(7) The
mortgagor is responsible and able to manage its responsibilities as mortgagor
and owner of the project.
(8) The note or
other obligation secured by the mortgage has a satisfactory maturity date in no
case later than 25 years from the date of the insurance contract if secured by
land and buildings and ten years if secured by machinery and equipment.
(9)(A) The mortgagor
is unable to secure, on reasonable terms, the funds required without the
assistance of the requested insurance contract from the Authority; or
(B) The issuance
of the requested insurance contract will serve as a substantial inducement for
the establishment or expansion of an eligible facility within the State.
(10) The
mortgagor is unable to secure, on reasonable terms, the funds required without
the assistance of the requested insurance contract from the Authority. Such
findings when adopted by the Authority shall be conclusive.
(b) Where any
federal agency may participate in the financing of a project within the scope
of this subchapter, the Authority may, if it determines that the participation
will be of benefit to the project and in the interest of the State, enter into
contracts or other transactions with the federal agency on terms and conditions
which meet the requirements of the federal act authorizing the participation.
(c) Subject to
the other provisions of this subchapter, except to the extent that they are
inconsistent herewith, upon application of the proposed mortgagee, the
Authority may insure mortgage payments required to repay loans made by the
mortgagee for the purpose of providing working capital to new or existing
industrial enterprises. Before insuring any mortgage payment hereunder, the
Authority shall determine and incorporate each of the findings established by
this subsection in its minutes. Such findings when adopted by the Authority
shall be conclusive.
(1) The mortgage
loan will prevent a substantial reduction in the existing employment level of
the industrial enterprise, or will increase the level of employment.
(2) The mortgage
and the insurance contract will be of public use and benefit.
(3) The mortgage
loan will be adequately secured by a mortgage on land and buildings, a security
interest in machinery or equipment inventory and accounts receivable, or by
other security such as letters of credit, or any combination of the foregoing.
(4) The
mortgagee is responsible and able to service the mortgage properly.
(5) The
principal obligation of the mortgage does not exceed $10,000,000.00.
(6) The
mortgagor is responsible and able to manage its responsibilities as mortgagor.
(7) The note or
other obligation secured by the mortgage has a satisfactory maturity date in no
case later than 25 years from the date of the insurance contract if secured by
land and buildings, or ten years if secured by machinery and equipment or other
adequate security as provided in subdivision (3) of this subsection.
(8) The
insurance contract will be without unreasonable risk of loss to the Authority.
(9) The proceeds
of the proposed mortgage loan will be used solely for the operations of the
industrial enterprise.
(10)(A) The
mortgagor is unable to secure, on reasonable terms, the funds required without
the assistance of the requested insurance contract from the Authority; or
(B) The issuance
of the requested insurance contract will serve as a substantial inducement for
the establishment or expansion of an eligible facility within the State.
(d) The
Authority shall develop and adopt policies and underwriting criteria pursuant
to which the Authority may insure mortgage payments under subsections (a) and
(c) of this section required to repay loans made by the mortgagee for the
purpose of financing the costs of eligible film projects, which for the
purposes of this section means a film project that complies with both the
following:
(1) At least 70
percent of the shooting days of the film project shall take place in Vermont.
(2) Vermont
residents shall comprise at least 30 percent of the film production crew.
(Added 1973, No. 197 (Adj. Sess.), § 1; amended 1975, No. 18, §§ 4, 5, eff.
March 27, 1975; 1977, No. 52, §§ 5, 6, eff. April 22, 1977; 1981, No. 54, §§
3-5, eff. April 28, 1981; 1989, No. 237 (Adj. Sess.), §§ 2, 3; 1993, No. 89, §
3(b), eff. June 15, 1993; 1993, No. 233 (Adj. Sess.), § 37, eff. June 21, 1994;
1995, No. 46, § 6, eff. April 20, 1995; 2003, No. 164 (Adj. Sess.), § 10, eff.
June 12, 2004; 2009, No. 54, § 109, eff. June 1, 2009; 2011, No. 110 (Adj.
Sess.), § 6, eff. May 8, 2012.)
