154.30.052 Signature project loan support program -- Program requirements. - Kentucky Statutes

Download pdf

Loading PDF...

Page 1 of 2 154.30-052 Signature project loan support program -- Program requirements. (1) An agency with a signature project approved under KRS 154.30-050(2)(a) with a tax incentive agreement executed prior to January 1, 2008, may apply to the
authority to participate in a loan support program. (2) The authority shall establish a loan support program for agencies meeting the requirements of subsection (1) of this section. The program shall, at a minimum,
include the following requirements:
(a) An agency seeking to participate in the loan support program shall file an application with the authority, in the form and format determined by the
authority. The authority shall review the application and may request any
additional information necessary to evaluate the application; (b) If the authority approves an agency for participation in the loan support program, the authority shall enter into an agreement with the agency detailing
the terms and conditions of the agency's participation in the program. The
terms of the agreement shall include but not be limited to:
1. Identification of the collateral or other forms of repayment assurance
that will be available from the agency if the Cabinet for Economic
Development makes a loan to the agency; 2. A requirement that the agency obtain from the developer or developers
an agreement to indemnify the Commonwealth or the agency, as the case
may be, if the Cabinet for Economic Development makes a loan to the
agency that the agency is not able to repay; 3. Identification of any other alternative methods for repayment of any
loans if incremental revenues are insufficient; 4. A statement that the authority has verified that the agency requesting
participation in the program has the resources available to maintain an
acceptable balance in the account as required by paragraph (g) of this
subsection; 5. A requirement that any balance remaining in the account of an agency at
the expiration of the agreement, and after all required amounts have
been repaid shall be repaid to the agency; and 6. The agreement term, which shall not be longer than the term of the tax
incentive agreement between the agency and the authority; (c) The agency requesting participation in the loan support program shall provide to the authority a lump-sum payment in an amount equal to at least seventy-
five percent (75%) of the annual average projected incremental revenues to be
generated within the agency's development area over the term of the tax
incentive agreement; (d) The authority shall hold the funds transferred by an agency on behalf of the agency making the deposit in a separate account; (e) To the extent funds are available in the agency's account, the authority shall, upon request of the agency, make a distribution from the agency's account to Page 2 of 2 the agency in any year that the incremental revenues generated from the
agency's development area are insufficient to make any debt payments the
agency is obligated to make; (f) 1. If the balance in an agency's account at the close of any fiscal year is less
than the amount initially provided by the agency to the authority, the
agency shall provide to the authority from incremental revenues, an
amount necessary to bring the level of the account back to the amount of
the lump-sum payment required by paragraph (c) of this subsection. 2. a. If the agency does not have sufficient incremental revenues to
bring its account back to the initial level, the Cabinet for Economic
Development shall, subject to the availability of funds, deposit in
the account of the agency the amount necessary to bring the
balance in the fund back to the initial level. b. If the Cabinet for Economic Development does not have sufficient
funds to restore the account to the initial level, the Cabinet for
Economic Development shall seek funding from the General
Assembly in an amount sufficient to restore the account balance to
the initial amount. c. Any amount deposited in the account of an agency by the Cabinet
for Economic Development shall be a loan from the Cabinet for
Economic Development to the agency, and shall be repaid by the
agency according to the terms and conditions agreed to by the
agency and the authority; (g) Prior to entering into an agreement with an agency pursuant to this section, the authority shall verify that the agency requesting the loan has the resources
available to maintain an acceptable balance in its account; and (h) Any balance remaining in the account of an agency at the expiration of the agreement and after all required amounts have been repaid shall be returned to
the agency. Effective: June 26, 2009
History: Created 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 64, effective June 26, 2009.