§ 3 — Powers

Massachusetts § 3

• Jurisdiction: Massachusetts
• Part I: ADMINISTRATION OF THE GOVERNMENT
• Title II: EXECUTIVE AND ADMINISTRATIVE OFFICERS OF THE COMMONWEALTH
• Ch. 23G: THE MASSACHUSETTS DEVELOPMENT FINANCE AGENCY

Text

Section 3. (a) The Agency shall have all powers necessary or convenient to carry out and effectuate its purposes, including, without limiting the generality of the foregoing, the powers:(1) to adopt and amend bylaws, regulations and procedures for the governance of its affairs and the conduct of its business without regard to chapter 30A;(2) to adopt an official seal;(3) to sue and be sued, to prosecute and defend actions relating to its properties and affairs, and to be liable in tort in the same manner as a private person; provided however, that the Agency is not authorized to become a debtor under the United States Bankruptcy Code;(4) to appoint officers and employees and to engage consultants, agents and advisors;(5) to enter into contracts and agreements and execute all instruments necessary or convenient thereto for accomplishing the purposes of this chapter; such contracts and agreements may include, without limiting the foregoing, construction agreements, purchase or acquisition agreements, loan or lease agreements including agreements conditioned upon the subleasing of the demised premises, partnership agreements including limited partnership agreements, joint ventures, participation agreements or loan agreements with leasing corporations or other financial institutions or intermediaries, and agreements with one or more persons for the servicing of loans made by the Agency including the receipt by such servicer of payments made by a user under a financing document. Any such payments shall constitute trust funds to be held and applied solely as provided in such agreement for the servicing of loans, shall constitute pledged funds of the Agency and shall be entitled to the same protection when received by a person for the servicing of loans, without the need for filing and recording of the servicing agreement under the provisions of chapter 106 or otherwise except in the records of the Agency, as is afforded to funds received by an issuer and pledged to a trustee under section 14 of chapter 40D.(6) to acquire real and personal property, or any interest in real or personal property, by gift, purchase, transfer, foreclosure, lease or otherwise including rights or easements; to hold, sell, assign, lease, encumber, mortgage or otherwise dispose of any real or personal property, or any interest therein, or mortgage any interest owned by it or under its control, custody or in its possession; to release or relinquish any right, title, claim, lien, interest, easement or demand however acquired, including any equity or right of redemption in property foreclosed by it; to take assignments of leases and rentals, proceed with foreclosure actions, or take any other actions necessary or incidental to the performance of its corporate purposes;(7) to invest any funds held in reserves or sinking funds, or in the Development Finance Insurance Fund, or any funds not required for immediate disbursement, in such investments as may be provided in any financing document relating to the use of such funds, or, if not so provided, as the board may determine;(8) to appear in its own behalf before boards, commissions, departments or other agencies of municipal, state or federal government;(9) to obtain insurance;(10) to apply for and accept subventions, grants, loans, advances and contributions from any source of money, property, labor or other things of value, to be held, used and applied for its corporate purposes;(11) to borrow money, issue bonds and apply the proceeds thereof as provided in section 8, in order to implement the purposes of this chapter and, without limiting the generality of the foregoing, to augment the means of securing financing authorized by law for or otherwise available to public bodies and other users;(12) to lend money to and to acquire or hold obligations issued by public bodies or other users at such prices and in such manner as the Agency shall deem advisable and sell such bonds acquired or held by it at prices without relation to cost and in such manner as the Agency shall deem advisable and to secure its own issues of bonds with such obligations held by it, all as provided in section 8;(13) to administer federally-insured pollution control loan guaranty programs;(14) to plan, acquire or lease on a temporary basis facilities and to provide for the construction, reconstruction, improvement, alteration or repair of any facility or part thereof;(15) to provide and pay for such advisory services and technical assistance as may be necessary or desired to carry out the purposes of this chapter;(16) to establish and collect such fees and charges as the Agency without appropriation shall determine to be reasonable; and to receive and apply revenues from fees and charges to the purposes of the Agency or allotment by the commonwealth or any political subdivision thereof; provided, however, that the agency shall publish and disseminate through its website each fiscal year a schedule of fees or a methodology for determining fees to be charged to institutions under this chapter, which shall result in similar charges for similarly-situated projects, regardless of the size of the participating institution. Before promulgating such schedule, the agency shall hold at least 1 public hearing under section 2 of chapter 30A;(17) to make loans to any person for the acquisition, construction, alteration, or any combination thereof, or other financing of a project, including but not limited to loans to lending institutions under terms and conditions requiring the proceeds of such loans to be used by such lending institutions for the making of loans to users for qualified projects;(18) to give assistance to local authorities, public bodies and sponsors through the providing of information, guidelines and suggested forms and procedures for implementing their financing programs;(19) to prepare, publish and distribute, with or without charge, as the Agency may determine, such studies, reports and bulletins and other material as the Agency deems appropriate;(20) to exercise any other powers of a corporation organized under chapter 156B; and(21) to do any and all things necessary or convenient to carry out its purposes and exercise the powers expressly granted in this chapter; provided, however, that nothing herein shall be construed to authorize the Agency to engage directly in the business of a manufacturing, industrial, real estate development or non-governmental service enterprise; and(22) to issue electric rate reduction bonds, as defined in section 1H of chapter 164, for the benefit of any electric company, as defined in section 1 of said chapter 164, determined to be eligible for said bond financing by the department of telecommunications and energy pursuant to said chapter 164. Such electric rate reduction bonds shall constitute "bonds'' for purposes of subsections (d) to (k), inclusive, of section 8 and of section 9.(23) in addition to the powers specified in clause (6), take possession and manage on behalf of the commonwealth or acquire on its own behalf lands, improvements thereon, and related personal property, hereinafter called lands, or an interest therein, (1) from the United States, which lands, or interest therein, were used for Westover Air Force Base, the Chelsea Naval Hospital, or the Boston Naval Shipyard, including the South Boston Annex, the Boston Army Base and all other lands owned by the United States and used in connection with or for purposes related to the operations of the Boston Naval Shipyard or the Boston Army Base, subject to such restrictions as may be imposed on such acquisition by the United States, and including, without limitation, any other property of the United States lying within the commonwealth and declared surplus by the United States, subject to such restrictions as may be imposed on such acquisition by the United States, hereinafter called the federal surplus lands; (2) from the commonwealth any lands which have been determined to be surplus to direct public uses by the commonwealth or by public agencies, hereinafter called state surplus lands; (3) lands declared decadent, substandard or blighted open areas by the Agency, which lands shall include, but not be limited to areas that are of such a character that they are in essence detrimental to the safety, health, morals, welfare or sound growth of the community in which they are situated because fluctuations in the real estate market, a substantial change in business and economic conditions or practices or the high-risk nature of newly emerging businesses and technologies have rendered the sale or efficient use of existing, new or renovated buildings or facilities thereon impractical without the aids provided herein, or because of an abandonment or cessation of a previous use thereon or the abandonment or cessation of work on improvements, facilities or buildings begun thereon but not feasible to complete or sell without the aids provided herein, or because of the inability of certain businesses and emerging technologies to receive private financing due to the high-risk nature of these businesses and technologies or due to changes in business and economic conditions, or because of any combination of foregoing reasons or other conditions not being remedied by the ordinary operations of private enterprise, hereinafter called blighted lands; and (4) lands declared appropriate by the Agency for the establishment, development, improvement, redevelopment, stabilization, operation or maintenance of small business incubator facilities, including, without limitation, existing small business incubator facilities, hereinafter called incubator development lands and from the United States, lands that were used for Fort Devens or a portion thereof.(24) engage accountants, architects, attorneys, engineers, planners, real estate experts and other consultants as may be necessary in its judgment to carry out the purposes of this act and fix their compensation;(25) take any actions necessary or convenient to the exercise of any power or the discharge of any duty provided for by this act;(26) in addition to the powers specified in clause (6), clear and improve property acquired or held by it and engage in or contract for the construction, reconstruction, demolition, development, redevelopment, rehabilitation, remodeling, alteration or repair thereof;(27) in addition to the powers specified in clause (6), prior or subsequent to taking possession of or acquiring such lands hold, protect, improve, manage, operate, maintain, repair and use such lands, or any interest therein, as it deems necessary or desirable to facilitate acquisition, disposition, management, operation, development or redevelopment of such lands, or any interest therein.(28) in addition to the powers specified in clause (6), dispose of such lands, or any interest therein, by sale, lease or otherwise as provided by this act;(29) in addition to any other power it has to make loans, provide guarantees or mortgage insurance or otherwise provide credit, make and administer loans, provide credit enhancement whether by loan guaranties, letters of credit, insurance or otherwise, and grants of its funds to persons, including without limitation governmental agencies and instrumentalities, and sell participations in said loans or purchase participations in the loans of others, for the acquisition, development, redevelopment, improvement or use of lands described in clause (23), for the construction, rehabilitation, improvement, demolition or maintenance of buildings thereon, for the acquisition, establishment, development, redevelopment, stabilization, management, improvement, maintenance or operation of small business incubator facilities thereon, including, without limitation existing small business incubator facilities, for funding of operating and replacement reserves for such small business incubator facilities, for the capitalization or stabilization of present or future occupants of such small business incubator facilities, and for any other use or purpose necessary or convenient for carrying out the powers expressly granted by this act, on such terms as the Agency may determine to be necessary and consistent with the provisions of this act; provided, however, that any new building construction for a small business incubator facility shall only be considered after exhausting all available alternatives of redevelopment, stabilization and improvement of existing blighted, decadent, distressed and substandard properties.(30) borrow money by issuance of its debt obligations as provided in section 29;(31) enter into agreements or other transactions with any person, including without limitation any public entity or other governmental instrumentality or Agency in connection with its powers and duties under this chapter.(32) in addition to any other power it has hereunder to make loans, provide guarantees or mortgage insurance or otherwise provide credit make or administer loans of funds of other public entities for purposes not inconsistent with the purposes of this act.(33) in addition to such other powers to own stock or warrants that may be provided hereunder, acquire stock and options or warrants for the purchase of stock in businesses or other public or private entities that are or will be located in a small business incubator facility and sell such stock, options or warrants provided, however, that the Agency shall not acquire more than 49 per cent of the stock of any such business or entity.[ Clauses (34) and (35) of subsection (a) effective until February 18, 2025. For text effective February 18, 2025, see below.](34) to make loans, including working capital and contract based loans, provide guarantees, loan insurance or reinsurance or otherwise provide financing or credit enhancing devices for the operation of companies which have a principal place of business in the commonwealth, including but not limited to loans to lending institutions under terms and conditions requiring the proceeds of such loans to be used by such lending institutions for the making of loans for the operation of companies; and(35) to contract or enter into agreements, licenses and easements, with municipalities, the federal government, any agency thereof or any other person or entity including, but not limited to, the commonwealth, state and public agencies of the commonwealth, regional entities and utility companies, to provide utility services, including, but not limited to, electricity, gas, cable television, broadband and telephone services and to acquire, construct, maintain and operate any such systems for utility services.[ Clauses (34) and (35) of subsection (a) as amended by 2024, 238, Sec. 56 effective February 18, 2025. See 2024, 238, Sec. 331. For text effective until February 18, 2025, see above.](34) to make loans, including working capital and contract based loans, provide guarantees, loan insurance or reinsurance or otherwise provide financing or credit enhancing devices for the operation of companies which have a principal place of business in the commonwealth including, but not limited to, loans to lending institutions under terms and conditions requiring the proceeds of such loans to be used by such lending institutions for the making of loans for the operation of companies;(35) to contract or enter into agreements, licenses and easements, with municipalities, the federal government, any agency thereof or any other person or entity including, but not limited to, the commonwealth or any public agencies thereof, regional entities and utility companies, to provide utility services including, but not limited to, electricity, gas, cable television, broadband and telephone services and to acquire, construct, maintain and operate any such systems for utility services;[ Clauses (36) through (43) of subsection (a) added by 2024, 238, Sec. 56 effective February 18, 2025. See 2024, 238, Sec. 331.](36) to borrow money by the issuance of debt obligations whether tax exempt or taxable and secure such obligations by the pledge of its revenues or the revenues, mortgages and notes of others; provided, however, that the corporation shall not issue debt obligations pursuant to this clause if the principal amount of those debt obligations, when added to the principal amount of existing debt obligations issued by the corporation under this clause, excluding debt obligations previously refunded or to be refunded by the corporation, would exceed $30,000,000;(37) to consent, subject to any contract with noteholders or bondholders, whenever it deems necessary or desirable to implement this chapter, to the modification, with respect to rate of interest, time of payment of an installment of principal or interest, or other terms, of a mortgage, mortgage loan, mortgage loan commitment, contract or other agreement to which the agency is a party;(38) to create, issue, buy and sell stock and other capital participation instruments, hold such stock and capital participation instruments and underwrite the creation of a capital market for these securities;(39) to provide advisory services, technical assistance and training programs to small businesses as may be necessary or desirable to carry out this chapter;(40) to create and issue shares that a person, firm or corporation may purchase; provided, however, that each share issued shall be in the form of non-voting common stock with each share having a par value of $10; provided, however, that the total value of the shares issued shall not exceed $25,000,000;(41) to make loans or grants to, or otherwise finance or invest in, a business to further the purposes of this chapter; provided, however, that such loans or grants may be made to certified community development corporations or other community based nonprofit entities for the purpose of such corporations or entities providing financing to businesses;(42) to provide loan guarantees to public or private entities for the purpose of causing such entities to provide financing to a business; and(43) to require, by contract in a financing agreement, or otherwise, specific operational activities, financial actions or management changes, as conditions for the receipt of a loan, financing or investment by the corporation.[ Paragraph inserted following first paragraph in subsection (a) by 2024, 238, Sec. 57 effective February 18, 2025. See 2024, 238, Sec. 331.]No debt obligation issued under clause (36), no stock or capital participation instrument created under clause (38) and no share issued under clause (40) by the agency shall be or become an indebtedness or obligation of the commonwealth and shall be plainly stated on the face of each bond, capital participation instrument, share or other evidence of indebtedness that it does not constitute an indebtedness or obligation of the commonwealth and is payable solely from the revenues or income of the agency.Notwithstanding any other provision of this chapter, the Agency shall not be authorized or empowered:(i) to emit bills of credit or accept deposits of money for time or demand deposit, to administer trusts, to engage in any form or manner in, or in the conduct of, any private or commercial banking business, or to act as a savings bank or savings and loan association;(ii) to be or to constitute a bank or trust company within the jurisdiction or under the control of the department of banking and insurance of the commonwealth, or the commissioner thereof, the comptroller of the currency of the United States of America or the treasury department thereof; or(iii) to be or constitute a bank, banker or dealer in securities within the meaning of, or subject to the provisions of, any securities, securities exchange or securities dealers' law of the United States of America or the commonwealth.The terms "maintain'', "maintaining'' and "maintenance'' wherever the same are used in this chapter shall include but not be limited to the demolition of improvements on lands acquired by the Agency where such demolition is determined by the Agency to contribute to the reduction or to avoid the likelihood of increase of the expense of maintaining or repairing such lands, and to be consistent with disposition of such lands as provided by this chapter.[ There is no subsection (b).]