§221. Insurance of mortgages

Link to law: http://legislature.vermont.gov/statutes/section/10/012/00221
Published: 2015

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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.)
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