Code of Maine Rules
94 - INDEPENDENT AGENCIES
457 - FINANCE AUTHORITY OF MAINE (FAME)
Chapter 107 - ELECTRIC RATE STABILIZATION PROJECT TAXABLE BOND PROGRAM
Section 457-107-11 - PREMIUMS, FEES AND OTHER CHARGES
Current through 2024-13, March 27, 2024
A. The Authority will be paid a commitment fee in accordance with the following schedule:
| LOAN AMOUNT | FEE |
| Up to $7,000,000 | 1 % of the loan benefiting from capital reserve fund security |
| Greater than $7,000,000 and less than $10,000,000 | 1 % of the first $7,000,000 of the loan benefiting from the capital reserve fund security, plus up to 1 % of the portion of the loan above $7,000,000 |
| $10,000,000 or more | 1 % of the first $7,000,000 of the loan benefiting from the capital reserve fund security, plus up to 5 % of the portion of the loan above $7,000,000. |
The Authority may, in its discretion, provide that a portion of the commitment fee is due upon execution of the financing commitment with the remainder due at a later date specified in the financing commitment, any such later date shall not be later than the date of issue of the bonds. Upon funding of the loan benefiting from capital reserve fund security, the commitment fee may in the discretion of the Authority, be applied in whole or in part to the first year's capital reserve fund premium. In the event. that the borrower elects not to participate in the program for mum other than the Authority's breach of the financing commitment, the full amount of the fee may be retained by the Authority as liquidated damages and/or for payment of the Authority's time and expenses unless otherwise provided in the financing commitment.
B. The Authority shall be paid an annual capital reserve fund premium not to exceed 2 %, as determined by the Authority, of the outstanding balance of the portion of each loan benefitting from a capital reserve fund at the closing of the loan and on each anniversary date of the loan or such other date specified in the contract. The premium shall be paid in advance for such period as is specified in the contract or other documentation. In the case of a loan in excess of $10,000,000, the annual premium shall not exceed 1/2 of 1 %, as determined by the Authority.
C. The Authority may provide that it shall receive in lieu of annual capital reserve fund premium payments a one time payment upon execution of the capital reserve fund contract equal to the estimated present value of premiums scheduled to be due over the anticipated term of the loan.
D. In the event that bonds are issued for the program prior to the execution of the capital reserve contract, the Authority may require borrowers to pay the interest rate differential between the rate paid on the bonds and the rate achieved by investment of bond proceeds prior to the funding of the loan from bond proceeds.
E. A borrower shall reimburse the Authority for its out-of-pocket expenses in connection with processing an application for capital reserve fund security or with the capital reserve fund, including any fee payable in connection with servicing the loan, and all expenses in connection with the bond issue, including without limitation charges of counsel and costs of sale of bonds, copying, mailing, phone calls, advertising and travel.
F. Where application is made after issuance to obtain the Authority's and/or trustee's consent to transfer of collateral, if any, alteration of rights or other matters, the Authority may charge the borrower for the cost of the Authority's staff and trustee's staff utilized to review the application and for the Authority's and trustee's out-of-pocket expenses in connection with the application, including without limitation, charges of counsel.
