Code of Massachusetts Regulations
946 CMR - MASSACHUSETTS DEVELOPMENT FINANCE AGENCY
Title 946 CMR 3.00 - Brownfields Redevelopment Fund
Section 3.04 - Loans From the Fund
Current through Register 1537, December 20, 2024
MassDevelopment may make and administer Loans from the Fund to finance Environmental Site Assessments and Environmental Cleanup Actions, in accordance with the following provisions:
(1) General Provisions.
(2) Loan Amounts.
(3) Loan Structure.
(4) Loan Security.
(5) Loan Interest Rates. The interest rate due and payable under a Loan shall be determined by MassDevelopment at a rate comparable to then-prevailing commercial loan rates set by MassDevelopment for brown fields transactions. Notwithstanding the foregoing, MassDevelopment may set an interest rate for a Loan that is below its prevailing rates in order to make an Eligible Project financially feasible .
(6) Loan Terms and Conditions. Loans shall be made upon terms and conditions outlined in a commitment letter drafted by MassDevelopment and accepted by the Borrower. The terms and conditions for each Loan shall be determined by MassDevelopment in accordance with its internal underwriting criteria and shall be based upon MassDevelopment's review of the Application, the financial statements, the anticipated economic impact associated with the Eligible Project, and any other documents required by MassDevelopment from the Borrower and any Guarantor or Matching Party.
(7) Legal Documents. Any Loan made from Fund shall be documented by standard loan documents by and between MassDevelopment, the Borrower, the Guarantor or Matching Party, if any, and any other party required by the Fund's legal counsel.