§ 221 - Insurance of mortgages - Vermont Statutes

§ 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 $9,000,000.00. 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 twenty-five 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 (c)(3) of this section;

(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.)