447.716. Failure of purchaser to perform, sanctions. - Missouri Statutes

Failure of purchaser to perform, sanctions.

447.716. 1. Any person who agrees to purchase abandoned property aspart of a qualified project and subsequently breaches the agreement orfails to use the property reuse fund moneys for allowable costs may beresponsible for immediate repayment of the moneys with interest to theproperty reuse fund together with a ten percent penalty on the total amountgranted or loaned. The director of the department of economic development,or the director's designee, shall take such action as the director deemsappropriate to effect and secure repayment of the moneys, together with theinterest and penalties due, to the property reuse fund. Nor may suchperson be eligible to receive the tax exemptions and credits described insection 447.708 and the liability releases and immunity described insection 447.714.

2. Any person who agrees to purchase abandoned property as part of aqualified project and subsequently fails to properly perform its voluntaryremediation activities to the satisfaction and approval of the departmentof natural resources, may be responsible for immediate repayment of themoneys with interest to the property reuse fund together with a ten percentpenalty on the total amount granted or loaned. Nor may such person beeligible to receive the tax exemptions and credits described in section447.708 and the liability releases and immunity described in section447.714.

3. Any person who obtained private financing for a qualified projectand a loan guarantee pursuant to section 447.704 and violates any provisionof sections 447.700 to 447.718 as described in subsection 1 or 2 of thissection:

(1) May have the guarantee withdrawn by the department of economicdevelopment to the extent the amount of the guarantee exceeds theoutstanding balance of principal and accrued interest under the privatefinancing at the time of withdrawal;

(2) Shall not be eligible to receive the tax exemptions and creditsdescribed in section 447.708; and

(3) Shall not receive the liability releases and immunities describedin section 447.714.

4. In the event of bankruptcy, insolvency, merger, acquisition orother valid change of business conditions of the purchaser or prospectivepurchaser which makes completion of the eligible project economicallyunsound or infeasible, the purchaser or prospective purchaser may elect toterminate their obligations for the eligible project upon ninety days'written notice to the affected governmental agency and the department ofeconomic development. The director of the department of economicdevelopment may require repayment of the loan balance together with theinterest which would have been received over the remaining term of theloan. Such purchaser or prospective purchaser may not receive the taxcredits and abatements of section 447.708. In the discretion of thedirector of the department of natural resources, the purchaser orprospective purchaser may receive a release under section 447.714, aswarranted by the voluntary remediation work actually performed.

5. The director of the department of economic development, with theapproval of the director of the department of natural resources, shalldetermine which of the sanctions described in this section shall beimposed, taking into consideration the severity and materiality of thebreach or violation, and the promptness with which the breach or violationis remedied. The director of the department of economic development shallconsult with the officer or other designee of the state, county ormunicipal government, or agency thereof, affected by the eligible projectregarding the circumstances of the breach or violation.

(L. 1995 H.B. 414)