The conditions referred to in section 10 of
this chapter are as follows:
(1)A new or additional guarantee of a loan or lease under section
10, 12, or 17 of this chapter may not be entered into if the
guarantee would cause the outstanding total guarantee obligations
with respect to all loans and leases guaranteed under sections 10,
12, and17 of this chapter to exceed eight (8) times the amount of
money in the guaranty fund.
(2)The amount of all guarantees by the corporation of loans or
leases to or for the benefit of any single industrial development
project, mining operation, or agricultural operation that involves
the processing of agricultural products may not exceed two
million dollars ($2,000,000), less the outstanding total principal
balance under any loans made and owed to the corp
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The conditions referred to in section 10 of
this chapter are as follows:
(1) A new or additional guarantee of a loan or lease under section
10, 12, or 17 of this chapter may not be entered into if the
guarantee would cause the outstanding total guarantee obligations
with respect to all loans and leases guaranteed under sections 10,
12, and17 of this chapter to exceed eight (8) times the amount of
money in the guaranty fund.
(2) The amount of all guarantees by the corporation of loans or
leases to or for the benefit of any single industrial development
project, mining operation, or agricultural operation that involves
the processing of agricultural products may not exceed two
million dollars ($2,000,000), less the outstanding total principal
balance under any loans made and owed to the corporation under
section 17 of this chapter to or for the benefit of the project or
operation.
(3) A guarantee of either a loan secured by real estate or a real
estate lease may not exceed ninety percent (90%) of the unpaid
principal balance of the loan from time to time outstanding or
ninety percent (90%) of the amount of any lease payment, as
applicable, or ninety percent (90%) of the appraised fair market
value of the real estate, whichever is less.
(4) A guarantee of a loan secured by personal property or of a
personal property lease may not exceed seventy-five percent
(75%) of the unpaid principal balance of the loan from time to
time outstanding or seventy-five percent (75%) of the amount of
any lease payment, as applicable, or seventy-five percent (75%)
of the fair market value of the personal property, whichever is
less.
(5) A guarantee involving both real estate and personal property
may not exceed the percentage proportionate to each type of
property.
(6) To be eligible for a guarantee under section 10 of this chapter,
a loan or lease must:
(A) be one that is to be made to and held by a lender or lessor
approved by the corporation as responsible and able to service
the loan or lease properly;
(B) involve a principal obligation or lease payments, as
applicable, which may include initial service charges and
appraisal, inspection, and other fees approved by the
corporation;
(C) have a maturity or term satisfactory to the corporation but
in no case later than twenty (20) years from the date of the
guarantee;
(D) contain payment terms satisfactory to the corporation
requiring periodic payments by the developer or user, including
principal and interest payments, cost of local property taxes and
assessments, land lease rentals, if any, insurance on the
property, as applicable, and any guarantee premiums required
by the corporation; and
(E) contain any terms and provisions with respect to property
insurance, repairs, alterations, payment of taxes and
assessments, default reserves, delinquency charges, default
remedies, anticipation of maturity, additional and secondary
liens, and other matters that the corporation may prescribe.
(7) The proposed guarantee or direct loan has been submitted to
the budget agency. The budget agency shall verify whether money
is available for the proposal and that the proposal is in compliance
with this chapter. The budget agency may submit the proposal,
with its comments, to the budget committee for review. The
corporation may not approve a guarantee or direct loan until the
budget committee has reviewed the guarantee or direct loan.