§ 10 §1026-L — Capital Access Program

Maine § 10 §1026-L

• Jurisdiction: Maine
• Title 10: COMMERCE AND TRADE
• Part 2: BUILDING AND DEVELOPMENT
• Ch. 110: FINANCE AUTHORITY OF MAINE

Text

1.
Capital Access Program established.
The authority shall establish a program known as the Capital Access Program, referred to in this section as "CAP," for the benefit of each participating state bank. The Capital Access Program Fund, referred to in this section as the "fund," is established to implement the CAP. The fund must be separate and apart from all other funds of the authority and held exclusively to secure the principal of and the interest on CAP loans made by a participating state bank.
2.
Contribution limit.
The amount of the authority's contribution to the fund may not exceed 10% of the principal amount of CAP loans to be secured by the fund. As a condition of the authority making a contribution to the fund, the authority may require the borrower or the participating state bank to make a contribution to the fund and may impose other conditions the authority determines necessary. All money contributed to the fund by the authority must be held in the name of the authority. Investment earnings on the fund must be credited to the fund and periodically paid to the authority, unless a CAP participation agreement pursuant to subsection 3 provides otherwise.
3.
Bank participation; rules.
Before establishing a CAP at a participating state bank, the authority must enter into a CAP participation agreement with the participating state bank. The CAP participation agreement must specify:
4.
Minimum requirements.
At a minimum, CAP loans must meet the following requirements.

Legislative History

PL 1993, c. 722, §B2 (NEW). PL 1993, c. 722, §B3 (AFF).