Code of Maine Rules
94 - INDEPENDENT AGENCIES
457 - FINANCE AUTHORITY OF MAINE (FAME)
Chapter 305 - OIL STORAGE FACILITY AND TANK PROGRAM
Section 457-305-7 - Collateral
Current through 2024-38, September 18, 2024
A. Repayment of any loan pursuant to the program shall be secured by such collateral as the Chief Executive Officer may require, including without limitation, a mortgage or security interest in real estate, buildings or personal property of the business entity, subject only to such other encumbrances as the Chief Executive Officer may approve, assignment or pledges of leases, and personal or corporate guarantees. Personal guarantees of the principals shall be required unless compelling reasons are presented justifying not requiring a guarantee.
B. Loans may, at the discretion of the Chief Executive Officer, be secured by collateral valued for collateral purposes at less than the amount of the loan, when necessary to ensure the replacement of a facility or tank or the installation of equipment related to the improvement of air quality required to be replaced or installed under applicable law.
C. Real estate or stationary machinery or equipment constituting a significant portion of collateral for repayment of a loan shall be located within the State. Mobile machinery or equipment, including vessels, constituting a significant portion of collateral for repayment of the loan shall be registered with and taxed by the State or municipal authorities, if the State or municipal authorities register or tax machinery or equipment of a type similar to the collateral, and shall be stored or berthed in the State when not in use.
D. In the event a borrower sells the premises from which a tank or facility is removed using the proceeds or any part of the proceeds of a grant received pursuant to the program, within five years of the receipt of said grant, borrower shall pay to the Authority an amount equal to the grant received upon the sale of such property. The Authority may, in the discretion of the Chief Executive Officer, require that a recipient of a grant provide such collateral as may be necessary to protect its interests pursuant to this provision, including, without limitation mortgages on real property.
