Code of Maine Rules
94 - INDEPENDENT AGENCIES
457 - FINANCE AUTHORITY OF MAINE (FAME)
Chapter 317 - NUTRIENT MANAGEMENT LOAN PROGRAM
Section 457-317-7 - COLLATERAL

A. Repayment of any loan pursuant to the Program shall be secured by such collateral as the Authority 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 Authority 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 Authority, be secured by collateral valued for collateral purposes at less than the amount of the loan, provided that other viable sources of repayment exist.

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. The Borrower must covenant to locate and use the equipment purchased with loan proceeds only in the State for the life of the loan.