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Searching 2021-2022 Session

The Vermont Statutes Online

 

Title 10 : Conservation and Development

Chapter 012 : VERMONT ECONOMIC DEVELOPMENT AUTHORITY

Subchapter 005 : DIRECT MORTGAGE LOANS

(Cite as: 10 V.S.A. § 262)
  • § 262. Findings

    Before making any loan, the Authority shall receive from an applicant a loan application in such form as the Authority may by regulation prescribe, and the Authority, or the Authority's loan officer pursuant to the provisions of subdivision 216(15) of this title, shall determine and incorporate findings in its minutes that:

    (1) The project is within the scope of this chapter and will increase or maintain employment and expand 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 making of the loan will be of public use and benefit.

    (4) The proposed loan will be adequately secured by a mortgage on real property or equipment, or both.

    (5) The principal obligation of the Authority's mortgage does not exceed $1,500,000.00, which may be secured by land and buildings or by machinery and equipment, or both; unless:

    (A) an integral element of the project consists of the generation of heat or electricity employing biomass, geothermal, methane, solar, or wind energy resources to be primarily consumed at the project, in which case the principal obligation of the Authority's mortgage does not exceed $2,000,000.00, which may be secured by land and by buildings, or machinery and equipment, or both; such principal obligation does not exceed 40 percent of the cost of the project; and the mortgagor is able to obtain financing for the balance of the cost of the project from other sources as provided in the following section; or

    (B) a single loan for which the principal amount of the Authority's mortgage does not exceed $3,000,000.00 for an eligible facility consisting of a municipal telecommunications plant, as defined in 24 V.S.A. § 1911(2).

    (6) The mortgagor is responsible and able to manage its responsibilities as mortgagor and owner of the project.

    (7) The mortgage has a satisfactory maturity date, in no case later than 20 years from the date of the mortgage.

    (8) The mortgagor is unable to finance the project upon reasonable terms without the assistance of the requested loan from the Authority, or in the alternative, the granting of the loan will serve as a substantial inducement for the establishment or expansion of an eligible project within the State.

    (9) The mortgagor has made adequate provision for insurance protection of the project while the loan is outstanding.

    (10) The loan will be without unreasonable risk of loss to the Authority. Such findings when adopted by the Authority shall be conclusive. (Added 1973, No. 197 (Adj. Sess.), § 1; amended 1975, No. 187 (Adj. Sess.), § 5; 1987, No. 203 (Adj. Sess.), § 2, eff. May 27, 1988; 1991, No. 212 (Adj. Sess.), § 5, eff. May 27, 1992; 1993, No. 89, § 3(b), eff. June 15, 1993; 1995, No. 46, § 11, eff. April 20, 1995; 1999, No. 131 (Adj. Sess.), § 2; 2003, No. 67, § 7a, eff. June 16, 2003; 2005, No. 137 (Adj. Sess.), § 2; 2011, No. 110 (Adj. Sess.), § 4, eff. May 8, 2012; 2015, No. 41, § 24, eff. June 1, 2015.)