Section 5. When it has been determined by the authority upon application of an industrial development agency and hearing thereon in the manner hereinafter provided, that the establishment of a particular industrial development project of such industrial development agency in a critical economic area has accomplished or will accomplish the public purposes of this act, the authority may contract to loan such industrial development agency an amount not in excess of the percentage of the cost of such industrial development project, as established or to be established as hereinafter set forth, subject, however, to the following:—
(a) Industrial development projects to be established:
(1) The authority may, in critical economic area A, contract to loan to the industrial development agency an amount not in excess of forty-five per cent of the cost of such industrial development project if it has determined that the industrial development agency holds funds or property in an amount or value equal to not less than five per cent of the cost of establishing the industrial development project, which funds or property are available for and shall be applied to the establishment of such project.
(2) The authority may, in critical economic area B, contract to loan to the industrial development agency an amount not in excess of thirty per cent of the cost of such industrial development project if it has determined that the industrial development agency holds funds or property in an amount or value equal to not less than ten per cent of the cost of establishing the industrial development project, which funds or property are available for and shall be applied to the establishment of such project.
(3) Prior to the making of any loan under this subsection the authority shall have determined that the industrial development agency has obtained from other independent and responsible sources, such as banks and insurance companies or otherwise, a firm commitment for all other funds, over and above the loan of the authority and such funds or property as the industrial development agency may hold, necessary for payment of all of the cost of establishing the industrial development project, and that the sum of all these funds, together with the machinery and equipment to be provided by the responsible tenant or responsible buyer, is adequate for the completion and operation of the industrial development project.
(b) The authority may, in critical economic area A, contract to loan to an industrial development agency an amount not in excess of forty-five per cent of the cost, and in critical economic area B, may contract to loan to an industrial development agency an amount not in excess of thirty per cent of the cost, of establishing an industrial development project established without prior participation by the authority, if at the time of making such loan the authority has determined:
(1) That in critical economic area A, the industrial development agency has invested in the industrial development project funds or property in an amount or value equal to not less than ten per cent of the cost of such industrial development project and all of the costs of establishing said industrial development project have been paid; and in critical economic area B, the industrial development agency has invested in the industrial development project funds or property in an amount or value equal to not less than twenty per cent of the cost of such industrial development project and all costs of establishing said industrial development project have been paid.
(2) That the industrial development project is leased or sold to a responsible tenant or buyer which has supplied the machinery and equipment necessary for the operation of the industrial development project and is occupying the same for the purposes intended.
(3) That neither the industrial development agency nor the responsible tenant or buyer is in default under any of the agreements entered into by them in respect of the financing and operation of the industrial development project.
(4) That there is sufficient income from the lease or agreement to purchase with the industrial tenant or industrial purchaser sufficient to insure the repayment of the loan of the authority made pursuant to this subsection.
(5) The proceeds of the authority loan to the industrial development agency made pursuant to this subsection shall be used only to pay a part of the cost of establishing an industrial development project in furtherance of the public purposes of this act.
(c) The authority may, in critical economic area A, contract to loan to an industrial development agency in respect of an industrial development project in which the authority heretofore participated an amount which together with the prior loan of the Authority, is not in excess of forty per cent of the cost of such industrial development project, and in critical economic area B, an amount which together with the prior loan of the authority, is not in excess of thirty per cent of the cost of such industrial development project, determined as of the time of the disbursement of the prior authority loan, if at the time of making such loan under this subsection the authority has determined:
(1) That the industrial development agency has invested in the industrial development project funds or property in an amount or value equal to not less than twenty per cent of the cost of such industrial development project and all of the costs of establishing such industrial development project have been paid.
(2) That the loan to the industrial development agency will not reduce the present investment of the industrial development agency in the industrial development project to an amount which is less than ten per cent of the cost of establishing the industrial development project, such percentage to be determined as of the time of the disbursement of the prior authority loan.
(3) That the responsible tenant or buyer occupying said industrial development project is willing to enter into such agreements, mortgages or other security instruments as the authority may deem necessary to secure such additional loan.
(4) That there is sufficient income from the lease or agreement to purchase with the industrial tenant or industrial purchaser sufficient to insure the repayment of the loan of the authority made pursuant to this subsection.
(5) That neither the industrial development agency nor the responsible tenant or purchaser is in default under any of the agreements entered into by them in respect of the financing and operation of the industrial development project.
(6) That the proceeds of the authority loan to the industrial development agency made pursuant to this subsection shall be used only to pay a part of the cost of establishing a specific industrial development project in furtherance of the public purposes of this chapter.
Any such loan of the authority shall be for such period of time and shall bear interest at such rate as shall be determined by the authority and shall be secured by bond or note of the industrial development agency and by mortgage on the industrial development project for which such loan was made, such mortgage to be second and subordinate only to the mortgage securing the first lien obligation issued to secure the commitment of funds from the aforesaid independent and responsible sources and used in the financing of the industrial development project.
Moneys so loaned by the authority to industrial development agencies shall be withdrawn from the Industrial Development Fund or the treasury of the authority and paid over to the industrial development agency in such manner as shall be provided and prescribed by the rules and regulations of the authority.
All payments of interest on said loans and the principal thereof shall be deposited by the authority in the Industrial Development Fund.
Loans by the authority to an industrial development agency for an industrial development project shall be made only in the manner and to the extent as provided in this section, except, however, in those instances wherein an agency of the federal government participates in the financing of an industrial development project by loan, grant or otherwise of federal funds. When any federal agency does so participate, the authority may adjust the required ratios of financial participation by the industrial development agency, the source of independent funds and the authority in such manner as to insure the maximum benefit available to the industrial development agency, the authority, or both, by the participation of the federal agency.
Where any federal agency participating in the financing of an industrial development project is not permitted to take as security for such participation a mortgage the lien of which is junior to the mortgage of the authority, the authority shall in such instances be authorized to take as security for its loan to the industrial development agency a mortgage junior in lien to that of the federal agency.
In no instance shall less than sixty per cent of the loans herein authorized be provided to industrial development agencies in critical economic area A.
Section 5. When it has been determined by the authority upon application of an industrial development agency and hearing thereon in the manner hereinafter provided, that the establishment of a particular industrial development project of such industrial development agency in a critical economic area has accomplished or will accomplish the public purposes of this act, the authority may contract to loan such industrial development agency an amount not in excess of the percentage of the cost of such industrial development project, as established or to be established as hereinafter set forth, subject, however, to the following:—
(a) Industrial development projects to be established:
(1) The authority may, in critical economic area A, contract to loan to the industrial development agency an amount not in excess of forty-five per cent of the cost of such industrial development project if it has determined that the industrial development agency holds funds or property in an amount or value equal to not less than five per cent of the cost of establishing the industrial development project, which funds or property are available for and shall be applied to the establishment of such project.
(2) The authority may, in critical economic area B, contract to loan to the industrial development agency an amount not in excess of thirty per cent of the cost of such industrial development project if it has determined that the industrial development agency holds funds or property in an amount or value equal to not less than ten per cent of the cost of establishing the industrial development project, which funds or property are available for and shall be applied to the establishment of such project.
(3) Prior to the making of any loan under this subsection the authority shall have determined that the industrial development agency has obtained from other independent and responsible sources, such as banks and insurance companies or otherwise, a firm commitment for all other funds, over and above the loan of the authority and such funds or property as the industrial development agency may hold, necessary for payment of all of the cost of establishing the industrial development project, and that the sum of all these funds, together with the machinery and equipment to be provided by the responsible tenant or responsible buyer, is adequate for the completion and operation of the industrial development project.
(b) The authority may, in critical economic area A, contract to loan to an industrial development agency an amount not in excess of forty-five per cent of the cost, and in critical economic area B, may contract to loan to an industrial development agency an amount not in excess of thirty per cent of the cost, of establishing an industrial development project established without prior participation by the authority, if at the time of making such loan the authority has determined:
(1) That in critical economic area A, the industrial development agency has invested in the industrial development project funds or property in an amount or value equal to not less than ten per cent of the cost of such industrial development project and all of the costs of establishing said industrial development project have been paid; and in critical economic area B, the industrial development agency has invested in the industrial development project funds or property in an amount or value equal to not less than twenty per cent of the cost of such industrial development project and all costs of establishing said industrial development project have been paid.
(2) That the industrial development project is leased or sold to a responsible tenant or buyer which has supplied the machinery and equipment necessary for the operation of the industrial development project and is occupying the same for the purposes intended.
(3) That neither the industrial development agency nor the responsible tenant or buyer is in default under any of the agreements entered into by them in respect of the financing and operation of the industrial development project.
(4) That there is sufficient income from the lease or agreement to purchase with the industrial tenant or industrial purchaser sufficient to insure the repayment of the loan of the authority made pursuant to this subsection.
(5) The proceeds of the authority loan to the industrial development agency made pursuant to this subsection shall be used only to pay a part of the cost of establishing an industrial development project in furtherance of the public purposes of this act.
(c) The authority may, in critical economic area A, contract to loan to an industrial development agency in respect of an industrial development project in which the authority heretofore participated an amount which together with the prior loan of the Authority, is not in excess of forty per cent of the cost of such industrial development project, and in critical economic area B, an amount which together with the prior loan of the authority, is not in excess of thirty per cent of the cost of such industrial development project, determined as of the time of the disbursement of the prior authority loan, if at the time of making such loan under this subsection the authority has determined:
(1) That the industrial development agency has invested in the industrial development project funds or property in an amount or value equal to not less than twenty per cent of the cost of such industrial development project and all of the costs of establishing such industrial development project have been paid.
(2) That the loan to the industrial development agency will not reduce the present investment of the industrial development agency in the industrial development project to an amount which is less than ten per cent of the cost of establishing the industrial development project, such percentage to be determined as of the time of the disbursement of the prior authority loan.
(3) That the responsible tenant or buyer occupying said industrial development project is willing to enter into such agreements, mortgages or other security instruments as the authority may deem necessary to secure such additional loan.
(4) That there is sufficient income from the lease or agreement to purchase with the industrial tenant or industrial purchaser sufficient to insure the repayment of the loan of the authority made pursuant to this subsection.
(5) That neither the industrial development agency nor the responsible tenant or purchaser is in default under any of the agreements entered into by them in respect of the financing and operation of the industrial development project.
(6) That the proceeds of the authority loan to the industrial development agency made pursuant to this subsection shall be used only to pay a part of the cost of establishing a specific industrial development project in furtherance of the public purposes of this chapter.
Any such loan of the authority shall be for such period of time and shall bear interest at such rate as shall be determined by the authority and shall be secured by bond or note of the industrial development agency and by mortgage on the industrial development project for which such loan was made, such mortgage to be second and subordinate only to the mortgage securing the first lien obligation issued to secure the commitment of funds from the aforesaid independent and responsible sources and used in the financing of the industrial development project.
Moneys so loaned by the authority to industrial development agencies shall be withdrawn from the Industrial Development Fund or the treasury of the authority and paid over to the industrial development agency in such manner as shall be provided and prescribed by the rules and regulations of the authority.
All payments of interest on said loans and the principal thereof shall be deposited by the authority in the Industrial Development Fund.
Loans by the authority to an industrial development agency for an industrial development project shall be made only in the manner and to the extent as provided in this section, except, however, in those instances wherein an agency of the federal government participates in the financing of an industrial development project by loan, grant or otherwise of federal funds. When any federal agency does so participate, the authority may adjust the required ratios of financial participation by the industrial development agency, the source of independent funds and the authority in such manner as to insure the maximum benefit available to the industrial development agency, the authority, or both, by the participation of the federal agency.
Where any federal agency participating in the financing of an industrial development project is not permitted to take as security for such participation a mortgage the lien of which is junior to the mortgage of the authority, the authority shall in such instances be authorized to take as security for its loan to the industrial development agency a mortgage junior in lien to that of the federal agency.
In no instance shall less than sixty per cent of the loans herein authorized be provided to industrial development agencies in critical economic area A.
Section 5. When it has been determined by the authority upon application of an industrial development agency and hearing thereon in the manner hereinafter provided, that the establishment of a particular industrial development project of such industrial development agency in a critical economic area has accomplished or will accomplish the public purposes of this act, the authority may contract to loan such industrial development agency an amount not in excess of the percentage of the cost of such industrial development project, as established or to be established as hereinafter set forth, subject, however, to the following:—
(a) Industrial development projects to be established:
(1) The authority may, in critical economic area A, contract to loan to the industrial development agency an amount not in excess of forty-five per cent of the cost of such industrial development project if it has determined that the industrial development agency holds funds or property in an amount or value equal to not less than five per cent of the cost of establishing the industrial development project, which funds or property are available for and shall be applied to the establishment of such project.
(2) The authority may, in critical economic area B, contract to loan to the industrial development agency an amount not in excess of thirty per cent of the cost of such industrial development project if it has determined that the industrial development agency holds funds or property in an amount or value equal to not less than ten per cent of the cost of establishing the industrial development project, which funds or property are available for and shall be applied to the establishment of such project.
(3) Prior to the making of any loan under this subsection the authority shall have determined that the industrial development agency has obtained from other independent and responsible sources, such as banks and insurance companies or otherwise, a firm commitment for all other funds, over and above the loan of the authority and such funds or property as the industrial development agency may hold, necessary for payment of all of the cost of establishing the industrial development project, and that the sum of all these funds, together with the machinery and equipment to be provided by the responsible tenant or responsible buyer, is adequate for the completion and operation of the industrial development project.
(b) The authority may, in critical economic area A, contract to loan to an industrial development agency an amount not in excess of forty-five per cent of the cost, and in critical economic area B, may contract to loan to an industrial development agency an amount not in excess of thirty per cent of the cost, of establishing an industrial development project established without prior participation by the authority, if at the time of making such loan the authority has determined:
(1) That in critical economic area A, the industrial development agency has invested in the industrial development project funds or property in an amount or value equal to not less than ten per cent of the cost of such industrial development project and all of the costs of establishing said industrial development project have been paid; and in critical economic area B, the industrial development agency has invested in the industrial development project funds or property in an amount or value equal to not less than twenty per cent of the cost of such industrial development project and all costs of establishing said industrial development project have been paid.
(2) That the industrial development project is leased or sold to a responsible tenant or buyer which has supplied the machinery and equipment necessary for the operation of the industrial development project and is occupying the same for the purposes intended.
(3) That neither the industrial development agency nor the responsible tenant or buyer is in default under any of the agreements entered into by them in respect of the financing and operation of the industrial development project.
(4) That there is sufficient income from the lease or agreement to purchase with the industrial tenant or industrial purchaser sufficient to insure the repayment of the loan of the authority made pursuant to this subsection.
(5) The proceeds of the authority loan to the industrial development agency made pursuant to this subsection shall be used only to pay a part of the cost of establishing an industrial development project in furtherance of the public purposes of this act.
(c) The authority may, in critical economic area A, contract to loan to an industrial development agency in respect of an industrial development project in which the authority heretofore participated an amount which together with the prior loan of the Authority, is not in excess of forty per cent of the cost of such industrial development project, and in critical economic area B, an amount which together with the prior loan of the authority, is not in excess of thirty per cent of the cost of such industrial development project, determined as of the time of the disbursement of the prior authority loan, if at the time of making such loan under this subsection the authority has determined:
(1) That the industrial development agency has invested in the industrial development project funds or property in an amount or value equal to not less than twenty per cent of the cost of such industrial development project and all of the costs of establishing such industrial development project have been paid.
(2) That the loan to the industrial development agency will not reduce the present investment of the industrial development agency in the industrial development project to an amount which is less than ten per cent of the cost of establishing the industrial development project, such percentage to be determined as of the time of the disbursement of the prior authority loan.
(3) That the responsible tenant or buyer occupying said industrial development project is willing to enter into such agreements, mortgages or other security instruments as the authority may deem necessary to secure such additional loan.
(4) That there is sufficient income from the lease or agreement to purchase with the industrial tenant or industrial purchaser sufficient to insure the repayment of the loan of the authority made pursuant to this subsection.
(5) That neither the industrial development agency nor the responsible tenant or purchaser is in default under any of the agreements entered into by them in respect of the financing and operation of the industrial development project.
(6) That the proceeds of the authority loan to the industrial development agency made pursuant to this subsection shall be used only to pay a part of the cost of establishing a specific industrial development project in furtherance of the public purposes of this chapter.
Any such loan of the authority shall be for such period of time and shall bear interest at such rate as shall be determined by the authority and shall be secured by bond or note of the industrial development agency and by mortgage on the industrial development project for which such loan was made, such mortgage to be second and subordinate only to the mortgage securing the first lien obligation issued to secure the commitment of funds from the aforesaid independent and responsible sources and used in the financing of the industrial development project.
Moneys so loaned by the authority to industrial development agencies shall be withdrawn from the Industrial Development Fund or the treasury of the authority and paid over to the industrial development agency in such manner as shall be provided and prescribed by the rules and regulations of the authority.
All payments of interest on said loans and the principal thereof shall be deposited by the authority in the Industrial Development Fund.
Loans by the authority to an industrial development agency for an industrial development project shall be made only in the manner and to the extent as provided in this section, except, however, in those instances wherein an agency of the federal government participates in the financing of an industrial development project by loan, grant or otherwise of federal funds. When any federal agency does so participate, the authority may adjust the required ratios of financial participation by the industrial development agency, the source of independent funds and the authority in such manner as to insure the maximum benefit available to the industrial development agency, the authority, or both, by the participation of the federal agency.
Where any federal agency participating in the financing of an industrial development project is not permitted to take as security for such participation a mortgage the lien of which is junior to the mortgage of the authority, the authority shall in such instances be authorized to take as security for its loan to the industrial development agency a mortgage junior in lien to that of the federal agency.
In no instance shall less than sixty per cent of the loans herein authorized be provided to industrial development agencies in critical economic area A.
