§ 279a - Contracts authorized - Vermont Statutes

§ 279a. Contracts authorized

The authority shall contract with participating banks to specify the terms and conditions of each bank's participation in the Vermont financial access program and the eligibility of loans for registration pursuant to this subchapter. The contract may include such terms and conditions as the authority determines may assist in meeting the purposes of the program, and shall provide that:

(1) loan proceeds shall be used exclusively for business purposes within Vermont, with special attention to be given to those persons who have historically had problems finding sources of credit, but not for the construction or purchase of residential housing or to finance passive real estate investments;

(2) the principal amount of any loan shall be less than $200,000.00; a loan shall be made only to a start-up business or to a business enterprise with gross annual sales, in its most recently completed fiscal year, of less than $5,000,000.00;

(3) a loan shall not be made to refinance an existing loan from the same bank or an affiliate of the same bank, except loans registered under this section; and

(4) a qualifying loan originated by a participating bank shall be registered with the authority on or before ten days after its origination. (Added 1993, No. 89, § 7.)