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VETOES
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H.B. 972
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(V) IF A LOAN FOR A LOCAL ECONOMIC DEVELOPMENT
OPPORTUNITY OR TO A LOCAL GOVERNMENT, SHALL CARRY AN INTEREST RATE NOT
EXCEEDING ONE-EIGHTH OF ONE PERCENT PLUS THE NET INTEREST COST OF THE
MOST RECENT STATE GENERAL OBLIGATION BOND ISSUE PRECEDING THE
APPROVAL OF THE LOAN;
(VI) SHALL NOT BEAR A RATE OF INTEREST LESS THAN 3% UNLESS
THE PROJECT FUNDED BY A LOAN IS LOCATED IN AN AREA OF HIGH
UNEMPLOYMENT OR THE DEPARTMENT DETERMINES THAT THE BORROWER IS
CARRYING OUT A COMPELLING ECONOMIC DEVELOPMENT INITIATIVE; AND
[(vi)] (VII) May not be used to refinance existing debt.
(2) Loans from the Fund may not be for a term exceeding:
(i) For working capital - 3 years;
(ii) For financing machinery, equipment, furnishings, or fixtures -
[10 years) THE LESSER OF 15 YEARS OR THE USEFUL LIFE OF THE ASSET, AS
DETERMINED BY THE DEPARTMENT; [and]
(iii) For financing the construction or acquisition of buildings and
real estate - 25 years; AND
(IV) FOR FINANCING REDEVELOPMENT OF A QUALIFIED
BROWNFIELDS SITE - A TERM APPROVED BY THE DEPARTMENT OR THE AUTHORITY.
(3) FOR LOANS FROM THE FUND THE DEPARTMENT MAY:
(I) WAIVE INTEREST DURING THE FIRST 2 YEARS OF A LOAN TERM;
OR
(II) UPON A DEFAULT BY THE BORROWER, IMPOSE AN INTEREST
RATE THAT EXCEEDS THE LIMITS SET FORTH IN PARAGRAPH (1) OF THIS
SUBSECTION.
(4) INVESTMENTS FROM THE FUND MAY BE MADE ONLY IN
CONJUNCTION WITH A LOAN OR A GRANT FROM THE FUND.
(d) To be eligible for [a loan] FINANCIAL ASSISTANCE from the Fund, an
applicant must be:
(1) An individual [or a], private business, NOT FOR PROFIT entity, OR
LOCAL GOVERNMENT [who] WHICH:
(i) [Is primarily engaged in a business] UNLESS THE APPLICANT
IS A LOCAL GOVERNMENT INTENDING TO USE THE FINANCIAL ASSISTANCE TO
CARRY OUT A PROJECT THAT DOES NOT BENEFIT A PARTICULAR PRIVATE SECTOR
ENTITY, MUST USE THE REQUESTED FINANCIAL ASSISTANCE FOR A PROJECT in an
eligible industry sector;
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- 4684 -
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