Code of Maine Rules
94 - INDEPENDENT AGENCIES
457 - FINANCE AUTHORITY OF MAINE (FAME)
Chapter 305 - OIL STORAGE FACILITY AND TANK PROGRAM
Section 457-305-1 - Definitions

1. "Aboveground Oil Storage Facility" or "Aboveground Facility" means any aboveground oil storage tank or tanks, together with associated piping, and transfer and dispensing facilities located over land or water of the State at a single location for more than four months per year that is used or intended to be used for the storage or supply of oil. Oil terminal facilities, as defined in 38 MRSA §542, sub § 7, and propane facilities are not included in this definition.

2. "Aboveground Oil Storage Tank" or "Aboveground Tank" means any aboveground container, less than 10% of the capacity of which is beneath the surface of the ground, that is used or intended to be used for the storage or supply of oil. Included in this definition are any tanks situated upon or above the surface of a floor in such a manner that they may be readily inspected.

3. "Borrower" means a person or entity that meets the eligibility requirements set forth in Section 3 of this rule, and includes a prospective borrower where the context requires. If the borrower is a real estate holding company or is a subsidiary or affiliate of or is related to an entity with 50% or more common ownership "borrower" shall include the parent, affiliated or related entity when determining eligibility, including the net worth and debt service coverage of the borrower.

4. "Chief Executive Officer" means the Authority's Chief Executive Officer or a person acting under the supervisory control of the Chief Executive Officer.

5. "Current Obligation(s)" means the portion of all outstanding debts including principal and interest owed by the borrower due within one year of the date of application, including payments on leases of real and personal property.

6. "Debt Service Coverage" means an amount equal to the quotient of a fraction, the numerator of which is the sum of the borrower's net income plus depreciation plus interest and the denominator of which is the sum of the borrower's current obligations, plus proposed payments of principal and interest. e.g. Debt Service Coverage = Net Income + Depreciation + Interest / Current Obligations + Proposed Loan Obligations)

7. "Equipment Related to Air Quality Improvement" means any equipment which must be installed by a gasoline service station to comply with applicable laws and regulations regarding gasoline service station vapor control and petroleum liquids transfer vapor recovery pursuant to the requirements of applicable law.

8. "Gasoline Service Station" means a single location from which a) motor fuel is sold to the general public or b) motor fuel is distributed solely for the use of officers or employees or owners of the location. A gasoline service station does not include a location from which motor fuel is distributed only for later sale.

9. "Net Income" means net income as determined by generally accepted accounting principles, as applied by the Authority. The determination of the borrower's net income shall be based on the financial statements and tax return for the borrower's most recent fiscal year and interim financial statements as the Authority may require. The Authority may rely on financial statements and tax returns from previous fiscal years if, in the discretion of the Authority, they are necessary to make a determination of net income.

10. "Net Worth" means, in the case of an individual or sole proprietorship, the total value of the equity of the borrower, the borrower's spouse, and dependents in all real and personal property, excluding the borrower's principal residence. In the case of a corporation or a limited liability company, net worth shall be defined in accordance with generally accepted accounting principles and shall include the individual net worth of each stockholder or member owning 20% or more of the outstanding and issued stock or ownership units of the corporation or limited liability company. In the case of a partnership, net worth shall be defined in accordance with generally accepted accounting principles and shall include the individual net worth of each general partner. In the case of a trust, net worth shall be defined in accordance with generally accepted accounting principles and shall include the individual net worth of each beneficiary of 20% or more of the proceeds of the trust. In the case of a co-op, net worth shall be defined in accordance with generally accepted accounting principles and may include the individual net worth of major owners in the discretion of the Authority.

11. "Members" means the members of the Finance Authority of Maine.

12. "Program" means the Oil Storage Facility and Tank Program governed by the Act and this rule.

13. "Project" means a) the renovation, removal, disposal or replacement of all or any part of an eligible underground oil storage facility or tank, or b) the construction, replacement or renovation of an aboveground tank or aboveground facility, or c) or the installation of equipment related to the improvement of air quality.

14. "State" means the State of Maine.

15. "Underground Oil Storage Facility" or "Underground Facility" means any tank, together with associated piping and dispensing facilities, 10% or more of which is located beneath the surface of the ground and not on or above a floor in such a manner that it may be readily inspected, located at a single location and used, formerly used or intended to be used for the marketing and distribution of oil, petroleum products or their by-products to persons or entities other than the owner of the facility.

16. "Underground Oil Storage Tank", or "Underground Tank" means any tank, together with associated piping, 10% or more of which is located beneath the surface of the ground and not on or above a floor in such a manner that it may be readily inspected, located at a single location and used, formerly used or intended to be used for consumption by the owner or user of the tank on the premises.