A. The
application for the Bond Guaranty Program must be filed with the Department a
minimum of thirty (30) days prior to the next meeting of the Arkansas Economic
Development Commission (AEDC), which is regularly held on the third Thursday of
each month. The applicant should check with the Business Finance Unit for
meeting dates.
B. Each application
should contain or be accompanied by information and exhibits as follows:
1. A description of the total amount of the
financing involved, the purpose thereof, and the portion for which the guaranty
is requested;
2. A description of
the site, including the total acreage, and a verification of its fair market
value (appraisal or other satisfactory evidence);
3. A general description of the improvements
to be made;
4. A written estimate
of cost of construction;
5. A
general description of the machinery and equipment to be included in the
project;
6. A verification of cost
of machinery and equipment (e.g. quotes from suppliers or written estimate by a
recognized authority not in regular employ of company);
7. If existing facilities are involved,
written evidence of the current fair market value thereof (appraisal or other
satisfactory evidence);
8. A
written statement by an officer of the company as to the average number of
employees expected within three (3) years after operations are
commenced;
9. Projected financial
statements for the first three (3) years' operation of the project, containing
estimates of earnings and expenses and year-end balances;
10. A description of the capital stock of the
company (classes, amounts authorized, amounts outstanding, capital paid
in);
11. A history of the company,
description of business, and length of time in business;
12. Officer's names, ages, and business
experience;
13. Director's names,
ages, and business affiliation or profession; amount of the company's stock
owned by each officer and director, by class, and the percentage of outstanding
stock of each class owned by all officers and directors as a group;
14. Copies of audited annual financial
statements for the most recent three (3) year period including such statements
of the parent if a subsidiary is to operate the proposed industrial facilities
and the parent is to guarantee performance by its subsidiary. Statements that
are more than ninety (90) days old must be accompanied by interim
statements;
15. Written evidence
that the Act No. 9 Bond are not saleable without the guaranty;
16. A commitment to pay a one-time premium
payment in the amount of five percent (5%) of the principal amount of the Act
No. 9 Bonds to be guaranteed, or three percent (3%) of the total debt service,
whichever is greater, with payment to be made before or simultaneously with the
issuance of the guaranty;
17. A
written statement to the effect that none of the bonds will be purchased or
owned by the company; and
18. The
Department and/or the AEDC may, if it so elects, require as conditions to the
issuance of guaranty, all or any part of the following:
(a) That all or certain officers or
stockholders execute and deliver to the Trustee, or the Department, their
individual personal written guarantees;
(b) That all or certain officers deliver to
the Trustee certificates representing the shares of the capital stock (of all
classes) of the company owned by them, and execute and deliver to the Trustee
"Stock Pledge Agreements" on forms commonly used by the Trustee for that
purpose;
(c) That each or certain
specified officers of the company will obtain life insurance upon his life, of
a type and issued by a company satisfactory to the Trustee and to the
Department;
(d) Restrictions as to
declaring and paying dividends;
(e)
Restrictions as to preferential treatment of or making advances, loans, or
payments to any other company or organization directly or indirectly controlled
by or affiliated with the company;
(f) Salary and bonus restrictions;
(g) Restrictions as to loans to officers,
directors, stockholders, or employees;
(h) Restrictions as to incurring indebtedness
or encumbering properties;
(i)
Restrictions as to issuance of additional capital stock;
(j) Restrictions as to capital improvements
and acquisitions; and
(k)
Restrictions as to minimum limits on size of corporate new worth.