New Hampshire Code of Administrative Rules
Bfa - Business Finance Authority
Chapter Bfa 300 - GENERAL CREDIT ENHANCEMENT PROGRAM RULES
Part Bfa 302 - SPECIFIC INFORMATION REQUIREMENTS FOR APPLICATIONS
Section Bfa 302.03 - Secondary Market for Loans by Local Development Organization Program
Universal Citation: NH Admin Rules Bfa 302.03
Current through Register No. 12, March 21, 2024
(a) Applications for a credit enhancement under RSA 162-A:10 shall be made by the local development organization.
(b) Such applications shall provide the following information:
(1) The name and address of local development
organization;
(2) A statement of
history and mission of local development organization;
(3) A description of form and structure of
local development organization;
(4)
A statement of support from municipalities served by local development
organization;
(5) A financial
statement or statements of the local development organization prepared by an
independent accountant;
(6) A
certification stating compliance by the business or project with the Americans
With Disabilities Act and Equal Opportunity Act;
(7) The name and address of the
borrower;
(8) The name and address
of project(s) involved in the transaction;
(9) The line(s) of business(es) of the
borrower;
(10) The background on
management of business or project;
(11) A description of principal factors that
make the transaction speculative or one of high risk;
(12) A description of all material legal
proceedings affecting business or project;
(13) A disclosure of all persons who shall
receive, either directly or indirectly, any proceeds of the loan acquisition as
compensation for services;
(14) A
statement as to the accounting treatment of transaction;
(15) A description of the terms of the
proposed loan purchase agreement;
(16) A summary of material terms of financing
documents to be acquired including, but not limited to:
a.Loan agreements;
b.Lease agreements;
c.Acquisition agreements;
d.Security agreements; and
e.Guarantee agreements;
(17) A description of local development
organization's ability to monitor performance of business or project;
(18) A detailed history of loan
performance;
(19) A detailed
history of borrower's compliance with all terms of the financing
documents;
(20) An identification
of primary and secondary sources of repayment by business;
(21) A cash flow analysis;
(22) The copies of professional appraisals of
collateral;
(23) The appraisal
required by Bfa 301.02(f);
(24) An environmental site assessment if real
estate is involved;
(25) The
financial statements, prepared by an independent accountant, for the business
or project for three years prior to current year;
(26) A certification by each party to the
transaction of the following:
a.The local
development organization or business entity is duly organized, validly existing
and in good standing under the laws of the state;
b.The local development organization or
business entity is not in violation of any term of its articles of
incorporation or by-laws;
c.The
local development organization or business entity is not in violation of any
term of any mortgage, loan agreement, or indenture to which it is a party or by
which it is bound; and
d.The local
development organization or business entity is not in violation of any term of
any other agreement, instrument, judgment, decree, order, statute, rule, or
governmental regulation;
(27) A detailed analysis of the specific
use(s) and purpose(s) to which the local development organization shall apply
the proceeds of the loan to be acquired;
(28) A statement identifying the following:
a.The ways the transaction serves a public
use and provides a public benefit;
b.The ways the transaction promotes the
social welfare and economic prosperity of the area and the general welfare of
New Hampshire citizens;
c.The ways
the transaction promotes development of business activities, creates or
preserves employment opportunities, or protects physical environment;
and
d.The ways the transaction
supports consistent application of local and regional development plans and
policies;
(29) The
number of employment positions current, created, preserved and
projected;
(30) The number of
full-time employees and part-time employees; and
(31) The estimated wage levels of current and
projected jobs.
(c) In the event the requested information cannot be provided, a detailed explanation of the reason why the requested information cannot be provided shall be included in said application.
(See Revision Note at chapter heading for Bfa 100) #5719, eff 10-13-93
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