Code of Maine Rules
94 - INDEPENDENT AGENCIES
457 - FINANCE AUTHORITY OF MAINE (FAME)
Chapter 107 - ELECTRIC RATE STABILIZATION PROJECT TAXABLE BOND PROGRAM
Section 457-107-8 - LOAN TERMS AND CONDITIONS
Universal Citation: 94 ME Code Rules ยง 457-107-8
Current through 2024-13, March 27, 2024
A. Mandatory Covenants. Any loan approved for the provision of capital reserve fund security under the program shall include covenants requiring the borrower to:
1. Make periodic payments of principal and
interest;
2. Pay any taxes and
governmental charges assessed against the borrower or any collateral;
3. Comply with all applicable federal, state
and local laws, regulations and ordinances;
4. Obtain, maintain and pay for any insurance
required as a condition of the financing commitment against damage to or loss
of any collateral;
5. Maintain and
repair any collateral;
6. Permit
the Authority to inspect any collateral and to inspect and copy the borrower's
books and records at any reasonable time;
7. Provide to the Authority periodic
financial reports in form and content, at times and for periods acceptable to
the Authority and prepared by persons acceptable to the Authority and also
provide to the Authority, when specifically requested, annual income tax
returns;
8. Refrain from
transferring any interest in the collateral, if any, without the Authority's
prior written consent;
9. Repay any
advances necessary to protect the collateral, if any, or enforce the rights of
the trustee or the Authority;
11.
Execute such further assurances as may be reasonably required; and
12. Keep the collateral, if any, free from
liens and encumbrances not approved in advance in writing by the
Authority.
B. Optional Covenants. In addition, the Authority may impose such other terms and conditions as it may deem prudent or desirable to assure the sale of bonds at reasonable rates, completion and continuation of the project, preservation of collateral, if any, and repayment of the loan benefiting from a capital reserve fund.
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