Section 162-A:13-c Intellectual Property Business Loan Development Program. - New Hampshire Statutes

   I. Upon recommendation of the authority for the proper implementation of the declared purposes of this chapter, the governor and council may award a state guarantee of the principal of, interest on, and reasonable collection expenses related to, loans which meet the requirements set forth in this section. The maximum amount for which the state may be liable pursuant to a guarantee awarded in accordance with this section shall not at any time exceed the lesser of $250,000 or 75 percent of the maximum principal amount that may be borrowed under the terms of the loan, plus in either case interest and related reasonable collection expenses with respect to such loan. The full faith and credit of the state shall be pledged for any such guarantee; provided that the guarantee shall not cause the contingent credit limit of RSA 162-A:22 to be exceeded.
   II. The state's guarantee of a loan under this section shall be evidenced by a guarantee agreement entered into by the state, the lender, and the borrower. The guarantee agreement shall contain such terms and conditions as the authority and the governor and council may impose, including, without limitation, restrictions on the use of loan proceeds, restrictions on the use and operation of any project financed or assisted by the loan, appropriate controls on the requisition of loan proceeds by the borrower, provisions for the state to demand acceleration of the payment of the loan in the event of a default by the borrower, provisions for payment to the authority of guarantee fees and reimbursement of costs and expenses, provisions for reimbursement of the state if the state is required to honor the guarantee, appropriate financial covenants, and provisions for the establishment of reserves. Subject to this section and the terms and conditions of such guarantee agreement, the guarantee agreement may provide that the state shall be liable to pay the first dollar of loss realized by the bank with respect to the guaranteed loan. In addition, as a condition of awarding any guarantee, the state shall be subrogated to all of the rights and security of the lender to the extent it honors the guarantee. Any guarantee agreement authorized in accordance with this section shall be executed on behalf of the state by the chairperson, vice chairperson, or executive director of the authority. The governor, with the advice and consent of the council, is authorized to draw a warrant for such sum as may be necessary out of money in the state treasury not otherwise appropriated, for the purpose of honoring any guarantee awarded under this section.
   III. Any loan guaranteed under this section shall meet the following requirements:
      (a) The loan shall be secured by a first priority security interest in ""intellectual property assets,'' including:
         (1) Patents, patent applications, patent disclosures and all related continuation, divisional, reissue, patent applications and registrations.
         (2) Trademarks, service marks, trade drafts, trade names, corporate names, and logos.
         (3) Copyrights and registrations and applications for registration of copyrights.
         (4) Computer software, data and documentation.
         (5) Trade secrets and confidential business information, know-how, manufacturing and product processes and techniques, research and development information, business and marketing plans and customer and supplier lists and information.
         (6) Other proprietary rights relating to any of the foregoing.
         (7) Copies and tangible embodiments of the foregoing.
      (b) The total principal amount of the loan shall not exceed 75 percent of the appraised fair market value of the intellectual property assets securing repayment of the loan, as determined pursuant to an appraisal of the collateral prepared by a competent independent party approved by the authority in connection with such loan and provided to the authority prior to awarding a guarantee.
      (c) The final maturity date of the loan shall not be later than 10 years from the date the loan was made.
      (d) After the project has been placed in service, the principal balance of the loan shall be scheduled to be reduced annually by an amount equal to not less than the principal amount that would be paid under a 20-year amortization schedule requiring fixed annual payments, to be applied to accrued interest first with any excess to principal, and a fixed interest rate not less than the interest rate in effect on the date the loan becomes effective, provided that in connection with any renewal of a loan such principal reduction shall not be required.
   IV. The maximum amount for which the state may be liable pursuant to a guarantee awarded in accordance with this section shall be reduced by one dollar for every dollar of principal that is paid with respect to the loan that is subject to the guarantee.
   V. The governor and council shall not award or renew any state guarantee under this section unless after a hearing they have made the findings specified in RSA 162-A:18.
   VI. The total amount of guarantees awarded under this section shall not exceed in the aggregate at any time $1,000,000 plus interest.
   VII. Whenever a guarantee is awarded under this section, the authority, the borrower, the lending institution or any appropriate combination of them shall deposit in the guarantee fund established under RSA 162-A:11 an amount equal to not less than 50 percent of the guaranteed portion of the principal of the loan.

Source. 2007, 317:1, eff. July 13, 2007.