In order to
be approved for financial assistance under this program, both the applicant and
the targeted structure must be deemed eligible according to criteria published
by the Office of Energy Programs.
(1)
Applicants for financial assistance must meet all of the following four (4)
criteria:
(a) Be classified as either a small
business of less than three hundred (300) employees or less than $3.5 million
in annual gross sales or receipts or a unit of county or local government
utilizing the loan to improve the energy efficiency of an existing building
that the applicant owns, occupies or uses for a business, industrial or
commercial purpose.
(b) Own, occupy
or use the targeted structure in its operations; and,
(c) Be declared financially sound and capable
of repaying the monies borrowed according to criteria published by the Office
of Energy Programs.
(2)
A structure that is to be the target for the installation of energy efficiency
measures that will be financed with the proceeds of a loan under this program
shall be considered an eligible structure only if it is an existing structure,
at least one (1) year old, that is located within the territorial boundaries of
the state of Tennessee and, is not:
(a)
Classified as condemned or scheduled for demolition;
(b) Leased or rented by the applicant from
another party unless the landlord has given the tenant written permission to
proceed with the installation;
(c)
Encumbered by a real estate sale, purchase, option, or trade agreement that is
scheduled to take place prior to the maturity of the loan unless either:
1. The current occupant/debtor agrees to
retire the outstanding balance of the loan before closing the agreement;
or,
2. The new occupant agrees to
retire the outstanding indebtedness according to the terms and conditions of
the originally executed loan agreement;
(d) Included on the National Register of
Historic Landmarks and Sites maintained by the U.S. Secretary of the Interior
or, if included, has the approval, in writing, of the Historical Society to
perform the work;
(e) Located in a
wetland or special flood hazard area as designated by the Federal Emergency
Management Agency; or,
(f)
Encumbered by subordinate mortgages, mechanics', or materialmen's, and/or any
other types of liens which would prevent the Office of Energy Programs from
obtaining a security interest which is junior to no more than one security
interest as collateral for a loan under the program or in an amount that would
cloud the Office of Energy Programs' collateral or jeopardize the Programs'
ability to collect on the unpaid balance of a loan in the event of a
default.
