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| PRIOR PRINTER'S NO. 1579 | PRINTER'S NO. 2048 |
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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY EARLL, M. WHITE, MENSCH, ARGALL, FOLMER, WAUGH, BROWNE, BRUBAKER, ALLOWAY, GORDNER, FONTANA AND BLAKE, SEPTEMBER 21, 2011 |
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| SENATOR EARLL, COMMUNITY, ECONOMIC AND RECREATIONAL DEVELOPMENT, AS AMENDED, MARCH 27, 2012 |
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| AN ACT |
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1 | Amending Titles 12 (Commerce and Trade) and 64 (Public |
2 | Authorities and Quasi-Public Corporations) of the |
3 | Pennsylvania Consolidated Statutes, further providing for | <-- |
4 | revolving loan program accounts; repealing First Industries |
5 | Program and Second Stage Loan Program; providing for the |
6 | Liberty Financing Authority; imposing duties on the |
7 | Department of Community and Economic Development; providing | <-- |
8 | for First Industries Program, for Second Stage Loan Program |
9 | and for transfer from Commonwealth Financing Authority to |
10 | Liberty Financing Authority for First Industries Program and |
11 | Second Stage Program; and making related repeals. |
12 | The General Assembly of the Commonwealth of Pennsylvania |
13 | hereby enacts as follows: |
14 | Section 1. Chapters 23 and 29 of Title 12 of the |
15 | Pennsylvania Consolidated Statutes are repealed: |
16 | [CHAPTER 23 |
17 | SMALL BUSINESS FIRST |
18 | Sec. |
19 | 2301. Scope. |
20 | 2302. Definitions. |
21 | 2303. Establishment. |
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1 | 2304. Fund and accounts. |
2 | 2305. Department responsibilities. |
3 | 2306. Capital development loans. |
4 | 2307. EDA loans. |
5 | 2308. Loans in distressed communities. |
6 | 2309. Pollution prevention assistance loans. |
7 | 2310. Export financing loans. |
8 | 2311. Reporting and inspection. |
9 | 2312. Limitations. |
10 | § 2301. Scope. |
11 | This chapter relates to the Small Business First Program. |
12 | § 2302. Definitions. |
13 | The following words and phrases when used in this chapter |
14 | shall have the meanings given to them in this section unless the |
15 | context clearly indicates otherwise: |
16 | "Agricultural processor." A person that adds value by |
17 | subjecting one or more farm commodities to a process of |
18 | manufacture, development or preparation for sale or a person |
19 | that converts a farm product into a marketable form. |
20 | "Agricultural producer." A person involved in the management |
21 | and use of a normal agricultural operation for the production of |
22 | a farm commodity. |
23 | "Apparel products." Products manufactured, woven, cut, sewn |
24 | or otherwise similarly processed by mechanical or human effort |
25 | from fabrics, leather or cloth and made for use as clothing, |
26 | shoes or other attire. |
27 | "Applicant." A person that applies for a loan in accordance |
28 | with this chapter. |
29 | "Area loan organization." A local development district, an |
30 | industrial development agency organized and existing under the |
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1 | act of May 17, 1956 (1955 P.L.1609, No.537), known as the |
2 | Pennsylvania Industrial Development Authority Act, or any other |
3 | nonprofit economic development organization certified by the |
4 | department as possessing the qualifications necessary to |
5 | evaluate and administer loans made under this chapter. |
6 | "Capital development project." Land, buildings, equipment |
7 | and machinery and working capital which is acquired, |
8 | constructed, renovated or used by a small business in accordance |
9 | with any of the following: |
10 | (1) As part of a for-profit project or venture not of a |
11 | mercantile or service-related nature, except for hospitality |
12 | industry projects. |
13 | (2) As part of an effort to: |
14 | (i) bring a small business into compliance with |
15 | Federal or State environmental laws or regulations; |
16 | (ii) complete an approved remediation project; or |
17 | (iii) permit a small business to adopt generally |
18 | acceptable pollution prevention practices. |
19 | (3) As part of an effort to provide assistance to a |
20 | small business that is a recycler of municipal or commercial |
21 | waste or that is a manufacturer using recycled municipal or |
22 | commercial waste materials. |
23 | (4) As part of an effort to assist a small business with |
24 | defense conversion activities. |
25 | (5) As part of a for-profit project or venture to |
26 | manufacture products to be exported out of the United States |
27 | by a small business which is not of a mercantile or service- |
28 | related nature, except for export-related services and |
29 | international export-related mercantile ventures or advanced |
30 | technology and computer-related services and mercantile |
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1 | ventures and which will increase this Commonwealth's national |
2 | or international market shares. |
3 | (6) As part of a for-profit project or venture that |
4 | meets the requirements of section 2308 (relating to loans in |
5 | distressed communities) |
6 | (7) As part of an effort to assist in the start-up or |
7 | expansion of a for-profit or not-for-profit child day-care |
8 | center subject to licensure by the Commonwealth. |
9 | "Child day-care center." Any premises in which child day |
10 | care is provided simultaneously for seven or more children who |
11 | are not related to the provider. |
12 | "Community development institution." Any of the following: |
13 | (1) An area loan organization for a distressed |
14 | community. |
15 | (2) A community development financial institution |
16 | located in a distressed community and approved by the |
17 | department. |
18 | "Distressed community." A community which has any of the |
19 | following: |
20 | (1) A census tract or other specifically defined |
21 | geographic area in which there is any of the following: |
22 | (i) A median income below 80% of the median income |
23 | for the United States or this Commonwealth. |
24 | (ii) Twenty percent or more of the population is |
25 | below the poverty level by family size published by the |
26 | Bureau of the Census. |
27 | (iii) An unemployment rate 50% higher than the |
28 | national average. |
29 | (2) An area which is designated a subzone, expansion |
30 | subzone or improvement subzone under the act of October 6, |
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1 | 1998 (P.L.705, No.92), known as the Keystone Opportunity Zone |
2 | and Keystone Opportunity Expansion Zone Act. |
3 | (3) Any other geographic area designated by the |
4 | department as distressed. The designation shall be published |
5 | in the Pennsylvania Bulletin. |
6 | "EDA loan." A loan made under this chapter utilizing funds |
7 | made available to the department under the Public Works and |
8 | Economic Development Act of 1965 (Public Law 89-136, 42 U.S.C. § |
9 | 3121 et seq.). |
10 | "Ex-Im Bank." The Export-Import Bank of the United States. |
11 | "Export activity." An activity undertaken by a person within |
12 | this Commonwealth related to exports. |
13 | "Export business." A person that is engaged in a for-profit |
14 | enterprise involving export activities and that employs 250 or |
15 | fewer individuals. |
16 | "Exports." Goods or services to be sold or performed outside |
17 | the United States. |
18 | "Farm commodity." Any Pennsylvania-grown agricultural, |
19 | horticultural, aquacultural, vegetable, fruit and floricultural |
20 | product of the soil, livestock and meats, wools, hides, furs, |
21 | poultry, eggs, dairy products, nuts, mushrooms, honey products |
22 | and forest products. |
23 | "Fund." The Small Business First Fund continued under |
24 | section 2304 (relating to fund and accounts). |
25 | "Hazardous substance." Any element, compound or material |
26 | which is any of the following: |
27 | (1) Regulated as a hazardous air pollutant under section |
28 | 6.6 of the act of January 8, 1960 (1959 P.L.2119, No.787), |
29 | known as the Air Pollution Control Act. |
30 | (2) Defined as a hazardous waste under section 103 of |
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1 | the act of July 7, 1980 (P.L.380, No.97), known as the Solid |
2 | Waste Management Act. |
3 | (3) Regulated under the act of December 7, 1990 |
4 | (P.L.639, No.165), known as the Hazardous Material Emergency |
5 | Planning and Response Act. |
6 | "Hospitality industry project." A for-profit project or |
7 | venture which involves a small business that operates a hotel, |
8 | motel or other lodging facility and that employs at least five |
9 | full-time equivalent employees at the time an application is |
10 | submitted to the department for financing. The term includes a |
11 | for-profit project or venture which involves a small business |
12 | that operates a restaurant or food service operation open to the |
13 | public, that has been in continuous operation for at least five |
14 | years and that employs at least five full-time equivalent |
15 | employees at the time an application is submitted. |
16 | "Insurance policy." An export credit insurance policy for |
17 | small businesses offered by the Export-Import Bank of the United |
18 | States. |
19 | "Natural disaster." As defined in 35 Pa.C.S. § 7102 |
20 | (relating to definitions). |
21 | "Normal agricultural operation." As defined in section 2 of |
22 | the act of June 10, 1982 (P.L.454, No.133), entitled "An act |
23 | protecting agricultural operations from nuisance suits and |
24 | ordinances under certain circumstances." |
25 | "Pollution prevention." The reduction or elimination of |
26 | pollution at its source. The term does not include any of the |
27 | following: |
28 | (1) A substitution of one hazardous or toxic substance |
29 | for another which will cause an increased risk to the |
30 | environment or to human health. |
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1 | (2) A cross-media transfer. |
2 | (3) A delisting of a hazardous waste or toxic chemical. |
3 | "Pollution prevention assistance agency." Any of the |
4 | following: |
5 | (1) An area loan organization. |
6 | (2) An industrial resource center created pursuant to |
7 | the act of June 22, 2001 (P.L.400, No.31), known as the |
8 | Industrial Resources Center Partnership Act. |
9 | "Pollution prevention infrastructure." A capital development |
10 | project which permits a small business to adopt or install |
11 | pollution prevention equipment or processes to: |
12 | (1) Reduce or reuse raw materials onsite. |
13 | (2) Reduce the production of waste. |
14 | (3) Reduce energy consumption. |
15 | "Program." The Small Business First Program established |
16 | under section 2303 (relating to establishment). |
17 | "Reuse." Use of a product or component in its original form |
18 | more than once. |
19 | "Small business." A person that is engaged in a for-profit |
20 | enterprise and that employs 100 or fewer individuals. The term |
21 | includes the following: |
22 | (1) An enterprise located in a small business incubator |
23 | facility. |
24 | (2) An agricultural processor. |
25 | (3) An agricultural producer. |
26 | (4) An enterprise which manufactures apparel products. |
27 | (5) An enterprise which is a for-profit or not-for- |
28 | profit child day-care center subject to licensure by the |
29 | Commonwealth. |
30 | "Working capital." Capital used by a small business for |
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1 | operations, excluding fixed assets and production machinery and |
2 | equipment. |
3 | § 2303. Establishment. |
4 | There is established within the department a program to be |
5 | known as the Small Business First Program. The program shall be |
6 | administered by the department and provide loans to eligible |
7 | persons for certain projects which encourage job-creating and |
8 | job-preserving economic development within this Commonwealth. |
9 | § 2304. Fund and accounts. |
10 | (a) Fund.--The Small Business First Fund, created under |
11 | section 1302(a) of the act of June 29, 1996 (P.L.434, No.67), |
12 | known as the Job Enhancement Act, is continued. The Treasury |
13 | Department shall credit the following to the fund: |
14 | (1) Appropriations made by the General Assembly to the |
15 | department for the program. |
16 | (2) Federal funds made available under the Public Works |
17 | and Economic Development Act of 1965 (Public Law 89-136, 42 |
18 | U.S.C. § 3121 et seq.) or any other Federal statute, |
19 | regulation or program for the program. |
20 | (3) Payments from recipients of loans made from the |
21 | fund. |
22 | (4) Payments from recipients of loans made under the |
23 | former act of July 2, 1984 (P.L.545, No.109), known as the |
24 | Capital Loan Fund Act. |
25 | (5) Interest income derived from investment of the money |
26 | in the fund. |
27 | (6) Any other deposits, payments or contributions from |
28 | any other source made available to the department for the |
29 | program. |
30 | (b) Pollution prevention assistance.--The Pollution |
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1 | Prevention Assistance Account, created under the act of June 29, |
2 | 1996 (P.L.434, No.67), known as the Job Enhancement Act, is |
3 | continued. The Treasury Department shall credit the following to |
4 | this account: |
5 | (1) Appropriations made by the General Assembly to the |
6 | department for pollution prevention assistance. |
7 | (2) Payments from recipients of loans made from the |
8 | Pollution Prevention Assistance Account. |
9 | (3) Transfers from the Hazardous Sites Cleanup Fund as |
10 | established in section 602.3 of the act of March 4, 1971 |
11 | (P.L.6, No.2), known as the Tax Reform Code of 1971. |
12 | (4) Interest income derived from investment of the money |
13 | in the Pollution Prevention Assistance Account. |
14 | (5) Any other deposits, payments or contributions from |
15 | any other source made available to the department for |
16 | pollution prevention assistance. |
17 | (c) Use of fund.-- |
18 | (1) Money in the fund may be used as follows: |
19 | (i) By the department to make loans in accordance |
20 | with this chapter and for administrative costs of the |
21 | department in administering the program. |
22 | (ii) By area loan organizations for administrative |
23 | costs associated with the program which are approved by |
24 | the department. |
25 | (2) Money from the fund derived from appropriations |
26 | specified for export financing assistance may be deposited by |
27 | the department in banks or trust companies in special |
28 | accounts. The special accounts must be continuously secured |
29 | by a pledge of direct obligations of the United States or of |
30 | the Commonwealth having an aggregate market value, exclusive |
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1 | of accrued interest, at least equal to the balance on deposit |
2 | in the account. The securities shall be deposited with the |
3 | department to be held by a trustee or agent satisfactory to |
4 | the department. Banks and trust companies are authorized to |
5 | give security under this paragraph. Money in these special |
6 | accounts shall be paid out on order of the department. |
7 | (d) Use of Pollution Prevention Assistance Account.--Money |
8 | in the Pollution Prevention Assistance Account may be used by |
9 | the department to provide loans to small businesses for the |
10 | adoption or installation of pollution-prevention or energy- |
11 | efficient equipment or processes in accordance with section 2309 |
12 | (relating to pollution prevention assistance loans). |
13 | § 2305. Department responsibilities. |
14 | (a) General rule.--The department shall do all of the |
15 | following: |
16 | (1) Administer the program. |
17 | (2) Establish written guidelines as necessary. Any |
18 | guidelines established shall be included in the report |
19 | required by Chapter 3 (relating to economic development |
20 | financing strategy). |
21 | (3) Deposit payments made by recipients in the fund or |
22 | the Pollution Prevention Assistance Account, as appropriate. |
23 | (4) Approve standards for area loan organization |
24 | application fees. |
25 | (5) Approve community development financial |
26 | institutions. |
27 | (b) Program.--In administering the program, the department |
28 | may do any of the following: |
29 | (1) Provide grants or other financial assistance to area |
30 | loan organizations for any of the following purposes: |
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1 | (i) To establish loan reserve funds. |
2 | (ii) To reimburse loan losses to commercial banks |
3 | and other financial institutions as a means of |
4 | encouraging the expansion and financing of small |
5 | businesses. |
6 | (2) Apply to the Ex-Im Bank for delegated authority |
7 | lender status under the Ex-Im Bank's Working Capital Guaranty |
8 | Program. |
9 | (3) Utilize the outstanding portfolio of loans made |
10 | under this chapter to raise additional funds by selling, |
11 | securing, hypothecating or otherwise using such loan proceeds |
12 | as a financing vehicle if the funds raised are used by the |
13 | department for either of the following purposes: |
14 | (i) To make new and additional loans under this |
15 | chapter. |
16 | (ii) To pay costs associated with financing. |
17 | § 2306. Capital development loans. |
18 | (a) Application.--A small business may submit an application |
19 | and any applicable application fee to its area loan organization |
20 | requesting a loan for certain costs of a capital development |
21 | project. The application shall be on the form required by the |
22 | department and shall include or demonstrate all of the |
23 | following: |
24 | (1) The name and address of the applicant. |
25 | (2) A statement of the amount of loan assistance sought. |
26 | (3) A statement of the capital development project, |
27 | including a detailed statement of the cost of the project. |
28 | (4) A financial commitment from a responsible source for |
29 | any cost of the capital development project in excess of the |
30 | amount requested. |
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1 | (5) Any other information required by the department. |
2 | (b) Area loan organization review.-- |
3 | (1) Upon receipt of a completed application, an area |
4 | loan organization shall investigate and determine all of the |
5 | following: |
6 | (i) If the applicant is a small business. |
7 | (ii) If the project is a capital development |
8 | project. |
9 | (iii) If, when the applicant is a small business, |
10 | the capital development project demonstrates a |
11 | substantial likelihood of creating or preserving |
12 | employment activities in this Commonwealth or if, when |
13 | the applicant is an agricultural producer, the project |
14 | demonstrates a substantial likelihood of enhancing and |
15 | growing normal agriculture operations. |
16 | (iv) The ability of the applicant to meet and |
17 | satisfy the debt service as it becomes due and payable. |
18 | (v) The existence and sufficiency of collateral for |
19 | the loan. |
20 | (vi) Relevant criminal and credit history and |
21 | ratings of the applicant as determined from outside |
22 | credit reporting services and other sources. |
23 | (vii) The number of employment opportunities to be |
24 | created or preserved by the proposed capital development |
25 | project. |
26 | (viii) If the applicant complied with all other |
27 | criteria established by the department. |
28 | (2) Upon being satisfied that all requirements have been |
29 | met, the area loan organizations shall recommend the |
30 | applicant to the department and forward the application with |
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1 | all supporting documentation to the department for its review |
2 | and approval. |
3 | (c) Department review.-- |
4 | (1) Within 30 days of receiving a recommendation and a |
5 | completed application, the department shall review the |
6 | application. If the department is satisfied that all |
7 | requirements have been met, the department may approve the |
8 | loan request in accordance with the following: |
9 | (i) A loan for land, buildings and machinery and |
10 | equipment may not exceed $200,000 or 50% of the total |
11 | capital development project costs, whichever is less. For |
12 | the purposes of this subparagraph, capital development |
13 | project costs incurred during the 12-month period prior |
14 | to the date of submission of the application to the |
15 | department shall be considered part of the total capital |
16 | development project costs. |
17 | (ii) A loan for working capital may not exceed |
18 | $100,000 or 50% of the total capital development project |
19 | costs, whichever is less. |
20 | (iii) Except for loans to agricultural producers, a |
21 | loan must create or preserve one job for every $25,000 |
22 | loaned. |
23 | (2) The department shall notify the area loan |
24 | organization and applicant of its decision. |
25 | (d) Approvals.--For applications which are approved, the |
26 | department shall draw an advance equal to the principal amount |
27 | of the loan from the fund. The advance shall be forwarded to the |
28 | area loan organization and, upon receipt by the area loan |
29 | organization, shall become an obligation of the area loan |
30 | organization. Prior to providing loan funds to the applicant, |
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1 | the area loan organization shall require the applicant to |
2 | execute a note and to enter into a loan agreement. In addition |
3 | to the requirements of subsection (e), the loan agreement shall |
4 | include a provision requiring the recipient to use the loan |
5 | proceeds to pay the costs of the capital development project. |
6 | The department may require the area loan organization to impose |
7 | other terms and conditions on the recipient if the department |
8 | determines that they are in the best interests of this |
9 | Commonwealth, including a provision requiring collateral for any |
10 | penalty imposed under subsection (g). |
11 | (e) Loan terms.--A loan agreement entered into in accordance |
12 | with subsection (c) shall do all of the following: |
13 | (1) State the collateral securing the loan. All loans |
14 | shall be secured by lien positions on collateral at the |
15 | highest level of priority as may be determined by the area |
16 | loan organization with the approval of the department. |
17 | (2) State the repayment period in accordance with the |
18 | following: |
19 | (i) A loan for real property shall have a repayment |
20 | period of up to 15 years. |
21 | (ii) A loan for machinery and equipment shall have a |
22 | repayment period of up to ten years. |
23 | (iii) A loan for working capital shall have a |
24 | repayment period of up to three years. |
25 | (iv) If, in a capital development project, there are |
26 | two or more uses planned, the loan terms may be blended. |
27 | (3) State the interest rate in accordance with the |
28 | following: |
29 | (i) Except as provided in subparagraph (ii), loans |
30 | shall be made at an interest rate not to exceed 5% for |
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1 | the term of the loan. |
2 | (ii) A loan to a small business which is an |
3 | agricultural producer shall be made at an interest rate |
4 | of not less than 2% for the term of the loan if all of |
5 | the following apply: |
6 | (A) A declaration under 35 Pa.C.S. § 7301(c) |
7 | (relating to general authority of Governor) is in |
8 | effect for at least ten days prior to the date of |
9 | application. |
10 | (B) The application is made within nine months |
11 | of termination of the declaration. |
12 | (C) The agricultural producer is in the area |
13 | which has been declared to be a natural disaster |
14 | area. |
15 | (f) Loan administration.--A loan made under this section |
16 | shall be administered in accordance with departmental policies |
17 | and procedures by the area loan organization which made the |
18 | loan. Each area loan organization shall submit an annual report |
19 | on the form required by the department and which includes or |
20 | demonstrates all of the following: |
21 | (1) Each outstanding loan. |
22 | (2) The date approved. |
23 | (3) The original principal amount. |
24 | (4) The current principal balance. |
25 | (5) The interest rate. |
26 | (6) The purpose for which the loan was made. |
27 | (7) An enumeration of any problems or issues which have |
28 | arisen with regard to each loan. |
29 | (8) A statement regarding the progress of the small |
30 | business in creating or preserving its requisite number of |
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1 | employment opportunities. |
2 | (9) Any other information or documentation required by |
3 | the department. |
4 | (g) Penalty.-- |
5 | (1) Except as provided in paragraph (2), the department |
6 | shall impose a penalty upon a recipient if the recipient |
7 | fails to create or preserve the number of employment |
8 | opportunities specified in its approved application. |
9 | (2) The department may waive the penalty required by |
10 | paragraph (1) if the department determines that the failure |
11 | was due to circumstances outside the control of the |
12 | recipient. |
13 | (3) The amount of the penalty imposed under paragraph |
14 | (1) shall be equal to an increase in the interest rate to 2% |
15 | greater than the current prime interest rate for the |
16 | remainder of the loan. |
17 | (h) Defaults.--The department may by foreclosure take title |
18 | to a capital development project which it financed if |
19 | acquisition is necessary to protect a loan made under this |
20 | section. The department shall pay all costs arising out of the |
21 | foreclosure and acquisition from moneys held in the fund. The |
22 | department may, in order to minimize financial losses and |
23 | sustain employment, lease the capital development project. The |
24 | department may withdraw moneys from the fund to purchase first |
25 | mortgages and to make payments on first mortgages on any capital |
26 | development project which it financed where purchase or payment |
27 | is necessary to protect a loan made under this section. The |
28 | department may sell, transfer, convey and assign the first |
29 | mortgages and shall deposit any moneys derived from the sale of |
30 | any first mortgages in the fund. |
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1 | § 2307. EDA loans. |
2 | (a) Application and administration procedures.--The |
3 | department shall establish application and administration |
4 | procedures to be used for EDA loans. The procedures shall be |
5 | established by guidelines and shall conform in all respects to |
6 | those procedures required or established by the Economic |
7 | Development Administration for use of Federal funds under the |
8 | Public Works and Economic Development Act of 1965 (Public Law |
9 | 89-136, 42 U.S.C. § 3121 et seq.). |
10 | (b) Eligibility for EDA loans.--The department shall |
11 | establish eligibility requirements to be used for EDA loans. The |
12 | requirements shall be established by guidelines and shall |
13 | conform in all respects to those procedures required or |
14 | established by the Economic Development Administration for use |
15 | of Federal funds under the Public Works and Economic Development |
16 | Act of 1965. |
17 | § 2308. Loans in distressed communities. |
18 | (a) Application.--A small business located in a distressed |
19 | community may submit an application and any applicable |
20 | application fee to a community development institution |
21 | requesting a loan for certain costs of a capital development |
22 | project. The application shall be on the form required by the |
23 | department and shall include or demonstrate all of the |
24 | following: |
25 | (1) The name and address of the applicant. |
26 | (2) A statement that the small business is engaged in |
27 | business-to-public service or in the mercantile, commercial |
28 | or point-of-sale retail business sectors. |
29 | (3) A statement of the amount of loan assistance sought. |
30 | (4) A statement of the capital development project, |
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1 | including a detailed statement of the cost of the project. |
2 | (5) A financial commitment from a responsible source for |
3 | the cost of the capital development project in excess of the |
4 | amount requested. |
5 | (6) Any other information required by the department. |
6 | (b) Community development institution review.-- |
7 | (1) Upon receipt of a completed application, a community |
8 | development institution shall investigate and determine all |
9 | of the following: |
10 | (i) If the applicant is a small business which is |
11 | engaged in business-to-public service or in the |
12 | mercantile, commercial or point-of-sale retail business |
13 | sectors in accordance with conditions or criteria |
14 | established by the department. |
15 | (ii) If the project is a capital development |
16 | project. |
17 | (iii) If the applicant has demonstrated a direct |
18 | impact on the community in which the capital development |
19 | project is or will be located, on residents of that |
20 | community or on the local and/or regional economy. The |
21 | department shall establish criteria that will assist in |
22 | making this demonstration. |
23 | (iv) Number of employment opportunities to be |
24 | created or preserved by the proposed capital development |
25 | project. |
26 | (v) If the applicant complied with all other |
27 | criteria established by the department. |
28 | (2) Upon being satisfied that all requirements have been |
29 | met, the community development institution shall recommend |
30 | the applicant to the department and forward the application |
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1 | with all supporting documentation to the department for its |
2 | review and approval. |
3 | (c) Department review.-- |
4 | (1) Upon receipt of a recommendation and a completed |
5 | application, the department shall investigate and determine |
6 | all of the following: |
7 | (i) The ability of the applicant to meet and satisfy |
8 | the debt service as it becomes due and payable. In |
9 | reviewing repayment obligations, loans shall not be |
10 | approved on the basis of direct financial return on |
11 | investment and shall not be held to the loan loss |
12 | standards of private commercial lenders. Loans shall be |
13 | reviewed for the purpose of establishing a strong |
14 | economic base and promoting entrepreneurial activity |
15 | within the distressed community. |
16 | (ii) The existence and sufficiency of collateral for |
17 | the loan. |
18 | (iii) Relevant criminal and credit history and |
19 | ratings of the applicant as determined from outside |
20 | credit reporting services and other sources. |
21 | (2) If the department is satisfied that all requirements |
22 | have been met, the department may approve the loan request in |
23 | an amount not to exceed $200,000 or 50% of the total capital |
24 | development project costs, whichever is less. For the purpose |
25 | of this paragraph, capital development project costs, except |
26 | the costs related to working capital, incurred during the 12- |
27 | month period prior to the date of submission of the |
28 | application to the department shall be considered part of the |
29 | total capital development project costs. |
30 | (3) The department shall notify the community |
|
1 | development institution and applicant of its decision. |
2 | (d) Approvals.--For applications which are approved, the |
3 | department shall draw an advance equal to the principal amount |
4 | of the loan from the fund and, prior to providing loan funds to |
5 | the applicant, the department shall require the applicant to |
6 | execute a note and to enter into a loan agreement. In addition |
7 | to the requirements of subsection (e), the loan agreement shall |
8 | include a provision requiring the recipient to use the loan |
9 | proceeds to pay the costs of the capital development project. |
10 | The department may impose other terms and conditions on the |
11 | recipient if the department determines they are in the best |
12 | interests of this Commonwealth, including a provision requiring |
13 | collateral for any penalty imposed under subsection (g). |
14 | (e) Loan terms.--A loan agreement entered into in accordance |
15 | with subsection (d) shall do all of the following: |
16 | (1) State any collateral securing the loan. The |
17 | department may use its best judgment to identify and secure |
18 | collateral. |
19 | (2) State the repayment period which may be flexible. |
20 | (3) State the interest rate which may not be less than |
21 | 2% nor more than 5% for the term of the loan. |
22 | (4) State that the recipient agrees to maintain, at a |
23 | minimum, the number of jobs in existence as of the date of |
24 | loan application. |
25 | (f) Loan administration.--A loan made under this section |
26 | shall be administered in accordance with departmental policies |
27 | and procedures. |
28 | (g) Penalty.-- |
29 | (1) Except as provided in paragraph (2), the department |
30 | shall impose a penalty upon a recipient if the recipient |
|
1 | fails to preserve the number of employment opportunities |
2 | specified in its approved application. |
3 | (2) The department may waive the penalty required by |
4 | paragraph (1) if the department determines that the failure |
5 | was due to circumstances outside the control of the |
6 | recipient. |
7 | (3) The amount of any penalty imposed under paragraph |
8 | (1) shall be equal to an increase in the interest rate to 2% |
9 | greater than the current prime interest rate for the |
10 | remainder of the loan. |
11 | (h) Defaults.--The department may take title by foreclosure |
12 | to a capital development project which it financed where |
13 | acquisition is necessary to protect a loan made under this |
14 | section. The department shall pay all costs arising out of the |
15 | foreclosure and acquisition from money held in the fund. The |
16 | department may, in order to minimize financial losses and |
17 | sustain employment, lease the capital development project. The |
18 | department may withdraw money from the fund to purchase first |
19 | mortgages and to make payments on first mortgages on any capital |
20 | development project which it financed if purchase or payment is |
21 | necessary to protect a loan made under this section. The |
22 | department may sell, transfer, convey and assign the first |
23 | mortgages and shall deposit in the fund money derived from the |
24 | sale of any first mortgages. |
25 | § 2309. Pollution prevention assistance loans. |
26 | (a) Application.--A small business may submit an application |
27 | and any application fee to a pollution prevention assistance |
28 | agency requesting a loan for a pollution prevention |
29 | infrastructure. The application shall be on the form required by |
30 | the department and shall include or demonstrate all of the |
|
1 | following: |
2 | (1) The name and address of the applicant. |
3 | (2) A statement of the amount of loan assistance sought. |
4 | (3) A statement of the pollution prevention |
5 | infrastructure, including a detailed statement of the cost of |
6 | the infrastructure. |
7 | (4) A financial commitment from a responsible source for |
8 | the cost of the pollution prevention infrastructure in excess |
9 | of the amount requested. |
10 | (5) Any other information required by the department. |
11 | (b) Pollution prevention assistance agency review.-- |
12 | (1) Upon receipt of a completed application, a pollution |
13 | prevention assistance agency shall investigate and determine |
14 | all of the following: |
15 | (i) If the applicant is a small business. |
16 | (ii) If the project is for pollution prevention |
17 | infrastructure. |
18 | (iii) If the applicant complied with all other |
19 | criteria established by the department. |
20 | (2) Upon being satisfied that all requirements have been |
21 | met, the pollution prevention assistance agency shall |
22 | recommend the applicant to the department and forward the |
23 | application with all supporting documentation to the |
24 | department for its review and approval. |
25 | (c) Department review.-- |
26 | (1) Upon receipt of a recommendation and a completed |
27 | application, the department shall investigate and determine |
28 | all of the following: |
29 | (i) If the pollution prevention infrastructure |
30 | demonstrates a substantial likelihood of preventing or |
|
1 | reducing pollution. The Department of Environmental |
2 | Protection shall assist the department in reviewing the |
3 | applications and provide technical assistance. |
4 | (ii) The ability of the applicant to meet and |
5 | satisfy the debt service as it becomes due and payable. |
6 | In reviewing repayment obligations, loans shall not be |
7 | approved on the basis of direct financial return on |
8 | investment and shall not be held to the loan loss |
9 | standards of private commercial lenders. Loans shall be |
10 | reviewed for the purpose of reducing pollution through |
11 | source reduction technologies or processes. |
12 | (iii) The existence and sufficiency of collateral |
13 | for the loan. |
14 | (iv) Relevant criminal and credit history and |
15 | ratings of the applicant as determined from outside |
16 | credit reporting services and other sources. |
17 | (2) If the department is satisfied that all requirements |
18 | have been met, the department may approve the loan request. A |
19 | loan approved under this subsection may not exceed the lesser |
20 | of: |
21 | (i) $100,000; or |
22 | (ii) 75% of infrastructure costs. |
23 | (3) The department shall notify the pollution prevention |
24 | assistance agency and applicant of its decision. |
25 | (d) Approvals.--For applications which are approved, the |
26 | department shall draw an advance equal to the principal amount |
27 | of the loan from the Pollution Prevention Assistance Account. |
28 | Prior to providing loan funds to the applicant, the department |
29 | shall require the applicant to execute a note and to enter into |
30 | a loan agreement. In addition to the requirements of subsection |
|
1 | (e), the loan agreement shall include a provision requiring the |
2 | recipient to use the loan proceeds to pay the costs of the |
3 | pollution prevention infrastructure. The department may impose |
4 | other terms and conditions on the recipient if the department |
5 | determines they are in the best interests of this Commonwealth, |
6 | including a provision requiring collateral for any penalty |
7 | imposed under subsection (g). |
8 | (e) Loan terms.--A loan agreement entered into in accordance |
9 | with subsection (d) shall do all of the following: |
10 | (1) State the collateral securing the loan. All loans |
11 | shall be secured by lien positions on collateral at the |
12 | highest level of priority as may be determined by the |
13 | department. |
14 | (2) State the repayment period which may not exceed 10 |
15 | years. |
16 | (3) State that the interest rate is 2%. |
17 | (4) State that any loan fee is not to exceed 5% of the |
18 | loan amount. |
19 | (f) Loan administration.--A loan made under this section |
20 | shall be administered in accordance with departmental policies |
21 | and procedures. |
22 | (g) Penalty.-- |
23 | (1) Except as provided in paragraph (2), the department |
24 | shall impose a penalty upon a recipient if the recipient |
25 | fails to carry out the pollution prevention infrastructure |
26 | project as specified in its approved application. |
27 | (2) The department may waive the penalty required by |
28 | paragraph (1) if the department determines that the failure |
29 | was due to circumstances outside the control of the |
30 | recipient. |
|
1 | (3) The amount of any penalty imposed under paragraph |
2 | (1) shall be equal to an increase in the interest rate to 2% |
3 | greater than the current prime interest rate for the |
4 | remainder of the loan. |
5 | (h) Defaults.--The department may take title by foreclosure |
6 | to a pollution prevention infrastructure which it financed if |
7 | acquisition is necessary to protect a loan made under this |
8 | section. The department shall pay all costs arising out of the |
9 | foreclosure and acquisition from money held in the Pollution |
10 | Prevention Assistance Account. The department may, in order to |
11 | minimize financial losses and sustain employment, lease the |
12 | pollution prevention infrastructure. The department may withdraw |
13 | money from the Pollution Prevention Assistance Account to |
14 | purchase first mortgages and to make payments on first mortgages |
15 | on any pollution prevention infrastructure which it financed if |
16 | the purchase or payment is necessary to protect a loan made |
17 | under this section. The department may sell, transfer, convey |
18 | and assign the first mortgages and shall deposit any money |
19 | derived from the sale of any first mortgages in the Pollution |
20 | Prevention Assistance Account. |
21 | § 2310. Export financing loans. |
22 | (a) Application.--A person may submit an application and any |
23 | applicable application fee to the department or its area loan |
24 | organization requesting a loan for certain costs of a capital |
25 | development project which will be used in export activities. The |
26 | application must be on the form required by the department and |
27 | must include or demonstrate all of the following: |
28 | (1) The name and address of the applicant. |
29 | (2) A statement of the amount of loan assistance sought. |
30 | (3) A statement of the capital development project, |
|
1 | including a detailed statement of the cost of the project. |
2 | (4) A financial commitment from a responsible source for |
3 | any cost of the capital development project in excess of the |
4 | amount requested. |
5 | (5) A statement that the loan, if approved, would not |
6 | supplant funding from private sector sources on commercially |
7 | reasonable terms. |
8 | (6) Any other information required by the department. |
9 | (b) Review.--Upon receipt of a completed application, the |
10 | department shall investigate and determine all of the following: |
11 | (1) If the applicant is an export business. |
12 | (2) If the project is a capital development project. |
13 | (3) The ability of the applicant to meet and satisfy the |
14 | debt service as it becomes due and payable. |
15 | (4) The existence and sufficiency of collateral for the |
16 | loan. |
17 | (5) Relevant criminal and credit history and ratings of |
18 | the applicant as determined from outside credit reporting |
19 | services and other sources. |
20 | (6) Number of employment opportunities to be created or |
21 | preserved by the proposed capital development project. |
22 | (7) If the applicant complied with all other criteria |
23 | established by the department. |
24 | (c) Approvals.--If the department is satisfied that all |
25 | requirements have been met, the department may approve the loan |
26 | request. A loan approved under this section may not exceed |
27 | $350,000. The department shall notify the applicant and, if |
28 | applicable, the area loan organization of its decision. The |
29 | department shall reserve an amount equal to the principal amount |
30 | of the loan within the fund or the special account authorized by |
|
1 | section 2304(c)(2) (relating to fund and accounts). Prior to |
2 | providing funds to the applicant, the department shall require |
3 | the applicant to execute a note and enter into a loan agreement. |
4 | In addition to the requirements of subsection (d), the loan |
5 | agreement shall include a provision requiring the recipient to |
6 | use the loan proceeds to pay the costs of the capital |
7 | development project. The department may impose other terms and |
8 | conditions on the recipient if the department determines they |
9 | are in the best interests of this Commonwealth, including any of |
10 | the following: |
11 | (1) A provision requiring collateral for any penalty |
12 | imposed under subsection (f). |
13 | (2) A provision requiring the person to be eligible for |
14 | an insurance policy. |
15 | (3) A provision requiring the loan to be guaranteed by |
16 | the Working Capital Guaranty Program offered by the Ex-Im |
17 | Bank. |
18 | (4) A provision requiring an export credit sales |
19 | contract insured by an insurance policy. |
20 | (d) Loan terms.--A loan agreement entered into in accordance |
21 | with subsection (c) shall do all of the following: |
22 | (1) State the collateral securing the loan. All loans |
23 | shall be secured by lien positions on collateral at the |
24 | highest level of priority as may be determined by the |
25 | department. |
26 | (2) State the repayment period as determined by the |
27 | department. |
28 | (3) State the interest rate as determined by the |
29 | department. |
30 | (e) Loan administration.--A loan made under this section |
|
1 | shall be administered in accordance with departmental policies |
2 | and procedures. |
3 | (f) Penalty.-- |
4 | (1) Except as provided in paragraph (2), the department |
5 | shall impose a penalty upon a recipient if the recipient |
6 | fails to carry out the export activities specified in its |
7 | approved application. |
8 | (2) The department may waive the penalty required by |
9 | paragraph (1) if the department determines that the failure |
10 | was due to circumstances outside the control of the |
11 | recipient. |
12 | (3) The amount of the penalty imposed under paragraph |
13 | (1) shall be equal to an increase in the interest rate to 2% |
14 | greater than the current prime interest rate for the |
15 | remainder of the loan. |
16 | (g) Defaults.--The department may, by foreclosure, take |
17 | title to a capital development project which it financed if |
18 | acquisition is necessary to protect a loan made under this |
19 | section. The department shall pay all costs arising out of the |
20 | foreclosure and acquisition from money held in the fund or a |
21 | special account authorized by section 2304(c)(2). The department |
22 | may, in order to minimize financial losses and sustain |
23 | employment, lease the capital development project. The |
24 | department may withdraw money from the fund or a special account |
25 | authorized by section 2304(c)(2) to purchase first mortgages and |
26 | to make payments on first mortgages on any capital development |
27 | project which it financed if purchase or payment is necessary to |
28 | protect a loan made under this section. The department may sell, |
29 | transfer, convey and assign the first mortgages and shall |
30 | deposit any money derived from the sale of any first mortgages |
|
1 | in the fund or a special account authorized by section 2304(c) |
2 | (2). |
3 | § 2311. Reporting and inspection. |
4 | (a) Inspection.--An applicant or a recipient shall, upon |
5 | request, permit authorized employees of the department or its |
6 | agent to inspect the plant, books and records of the applicant |
7 | or recipient. |
8 | (b) Updating.--An applicant or a recipient shall provide |
9 | updated information to the department and its agents if |
10 | conditions change or to the extent that the information |
11 | originally given becomes inaccurate or misleading. |
12 | (c) Periodic reports.--A recipient shall provide the |
13 | department and its agents with such periodic financial reports |
14 | as the department may require until the loan is repaid in full. |
15 | (d) Financial and performance audits.--An agent of the |
16 | department shall annually submit to the department, at the |
17 | agent's expense, an independent financial audit. If the audit |
18 | reveals misconduct of a material nature on the part of the |
19 | agent, the department shall take appropriate action. |
20 | § 2312. Limitations. |
21 | No loans shall be recommended or approved if the proceeds of |
22 | the loan could do any of the following: |
23 | (1) Cause, aid or assist directly in the relocation of |
24 | any business operations from one part of this Commonwealth to |
25 | another unless there is at least a 25% net increase in |
26 | employment. |
27 | (2) Refinance any portion of the total cost of a capital |
28 | development project, pollution prevention infrastructure or |
29 | other existing loans or debt. |
30 | (3) Finance a capital development project or pollution |
|
1 | prevention infrastructure located outside the geographic |
2 | boundaries of this Commonwealth. |
3 | (4) Provide funds, directly or directly, for payment |
4 | distribution or as loan owners, partners or shareholders of a |
5 | small business, except as ordinary compensation for services |
6 | rendered. |
7 | (5) Provide funds for speculation in real or personal |
8 | property, whether tangible or intangible. |
9 | CHAPTER 29 |
10 | MACHINERY AND EQUIPMENT LOANS |
11 | |
12 | Sec. |
13 | 2901. Scope. |
14 | 2902. Definitions. |
15 | 2903. Establishment. |
16 | 2904. Machinery and Equipment Loan Fund. |
17 | 2905. Eligibility for loans; terms and conditions. |
18 | 2906. Application and administration. |
19 | 2907. Powers of secretary. |
20 | 2908. Reporting and inspection. |
21 | 2909. Nondiscrimination. |
22 | 2910. Conflict of interest. |
23 | 2911. Reports to General Assembly. |
24 | 2912. Guidelines. |
25 | § 2901. Scope. |
26 | This chapter relates to the Machinery and Equipment Loan |
27 | Program. |
28 | § 2902. Definitions. |
29 | The following words and phrases when used in this chapter |
30 | shall have the meanings given to them in this section unless the |
|
1 | context clearly indicates otherwise: |
2 | "Business enterprise." A for-profit corporation, partnership |
3 | or proprietorship. The term includes a medical facility. |
4 | "Farm commodity." Any Pennsylvania-grown agricultural, |
5 | horticultural, aquacultural, vegetable, fruit and floricultural |
6 | product of the soil, livestock and meats, wools, hides, furs, |
7 | poultry, eggs, dairy products, nuts, mushrooms, honey products |
8 | and forest products. |
9 | "Fund." The Machinery and Equipment Loan Fund created and |
10 | established by this chapter. |
11 | "Medical facility." An entity licensed as a hospital under |
12 | the act of June 13, 1967 (P.L.31, No.21), known as the Public |
13 | Welfare Code, or the act of July 19, 1979 (P.L.130, No.48), |
14 | known as the Health Care Facilities Act. |
15 | "Normal agricultural operation." The term shall have the |
16 | same meaning as given to it in section 2 of the act of June 10, |
17 | 1982 (P.L.454, No.133), entitled "An act protecting agricultural |
18 | operations from nuisance suits and ordinances under certain |
19 | circumstances." |
20 | "Production agriculture." The management and use of a normal |
21 | agricultural operation for the production of a farm commodity. |
22 | § 2903. Establishment. |
23 | There is established within the department a program to be |
24 | known as the Machinery and Equipment Loan Program. The program |
25 | shall be administered by the department and provide loans to |
26 | business enterprises for machinery and equipment. |
27 | § 2904. Machinery and Equipment Loan Fund. |
28 | (a) Creation.--There is created a special account in the |
29 | Treasury Department, to be known as the Machinery and Equipment |
30 | Loan Fund, to which shall be credited all program appropriations |
|
1 | made by the General Assembly, all proceeds from loan repayments |
2 | and any and all other deposits, payments or contributions from |
3 | any other source made available to the fund. The fund shall |
4 | operate as a revolving fund whereby all appropriations, payments |
5 | and interest made thereto may be applied and reapplied to the |
6 | purposes of this chapter. |
7 | (b) Credits to fund.--All appropriations, deposits and |
8 | contributions made to the fund shall be immediately credited in |
9 | full to the fund, and earnings on the moneys held in the fund |
10 | shall also be credited to the fund for the purposes of this |
11 | chapter. |
12 | § 2905. Eligibility for loans; terms and conditions. |
13 | (a) Loans; general rules.--The secretary may make advances |
14 | from the fund, subject to the terms, conditions and restrictions |
15 | provided under this chapter, for the purpose of making loans to |
16 | business enterprises involved in industrial processes, mining, |
17 | manufacturing, production agriculture, information technology, |
18 | biotechnology, service as a medical facility or other industrial |
19 | or technology sectors, as defined by the department, to acquire |
20 | and install new machinery and equipment or upgrade existing |
21 | machinery and equipment, including the acquisition, application |
22 | and utilization of computer hardware and software. |
23 | (1) All loans shall be subject to all of the following |
24 | conditions: |
25 | (i) Be made to eligible business enterprises under |
26 | the provisions of this chapter. |
27 | (ii) Have a maximum loan ceiling of $5,000,000 or |
28 | 50% of the cost of the project, whichever is less. |
29 | (iii) Be limited to the purchase and installation of |
30 | new equipment and machinery or the upgrade of existing |
|
1 | machinery and equipment. This subparagraph includes the |
2 | acquisition, application and utilization of computer |
3 | hardware and software. |
4 | (iv) Be limited to projects that demonstrate the |
5 | creation or retention of one job for every $25,000 |
6 | received from the fund. This subparagraph does not apply |
7 | to loans made to business enterprises involved in |
8 | production agriculture or to loans made to medical |
9 | facilities. |
10 | (v) Have an interest rate which shall be established |
11 | by the secretary. |
12 | (vi) Have a term of not in excess of ten years. |
13 | (2) For loans to medical facilities, loan funds may be |
14 | used only to finance the acquisition, installation and |
15 | utilization of machinery and equipment, including computer |
16 | hardware and software components, to be used in the |
17 | prescribing and dispensing of medication for medical facility |
18 | patients. |
19 | (b) Restrictions.--No loans shall be made that do any of the |
20 | following: |
21 | (1) Cause, aid or assist in, directly or indirectly, the |
22 | relocation of any business enterprise from one part of this |
23 | Commonwealth to another unless there is at least a 25% |
24 | increase in net employment. |
25 | (2) Supplant funding that is otherwise available |
26 | expeditiously from private sector sources on commercially |
27 | reasonable terms. |
28 | (3) Be for the purpose of refinancing any portion of the |
29 | total project cost or other existing loans or debt. |
30 | (4) Be for the purpose of financing projects located |
|
1 | outside the geographic boundaries of this Commonwealth. |
2 | (5) Be for the purpose of paying off a creditor that is |
3 | inadequately secured and is in a position to sustain a loss. |
4 | (6) Be for the purpose of repaying a debt owed to a |
5 | small business investment company. |
6 | (7) Provide funds for speculation in any kind of |
7 | property, real or personal, tangible or intangible. |
8 | (c) Security.--All loans shall be secured by no less than a |
9 | second lien position on the equipment purchased and other |
10 | sufficient collateral as determined by the secretary. |
11 | § 2906. Application and administration. |
12 | (a) Procedures.--Application and administration procedures |
13 | for fund loans shall be established by the secretary. |
14 | (b) Receipt.--The secretary shall receive applications from |
15 | eligible business enterprises for machinery and equipment loans. |
16 | Applications shall be made to the secretary in the form and |
17 | manner as the department may require. |
18 | (c) Investigation.--Upon receipt of the application, the |
19 | secretary shall investigate and review the application and |
20 | either approve or disapprove the loan application by proper |
21 | action of the department. The decision of the secretary shall be |
22 | based, in whole or in part, upon the following criteria: |
23 | (1) Ability of the applicant to meet and satisfy all |
24 | debt service as it becomes due and payable. |
25 | (2) Sufficiency of available collateral, including |
26 | satisfactory lien positions on real and personal property. |
27 | (3) Eligibility of the applicant as a business |
28 | enterprise involved in industrial processes, manufacturing, |
29 | mining, production agriculture, information technology, |
30 | biotechnology, services as a medical facility or other |
|
1 | industrial or technology sectors as defined by the secretary. |
2 | (4) Sufficient evidence that funds shall be used only to |
3 | acquire and install new equipment and machinery or upgrade |
4 | existing equipment and machinery, including the acquisition, |
5 | application and utilization of computer hardware and |
6 | software. |
7 | (5) Capital needs of the applicant. |
8 | (6) Conformity of the project to the provisions of this |
9 | chapter. |
10 | (7) Relevant criminal and credit history and ratings of |
11 | applicant as determined from outside credit reporting |
12 | services and other sources. |
13 | (8) Number of net employment opportunities created and |
14 | retained by the proposed project. This paragraph does not |
15 | apply to business enterprises involved in production |
16 | agriculture or medical facilities. |
17 | (9) Supporting evidence that the loan project will |
18 | increase the firm's competitiveness and value added within |
19 | its respective industry. |
20 | (10) Explanation of how the loan will aid the |
21 | Commonwealth in its efforts to assist business enterprises to |
22 | increase their productivity and improve the future |
23 | competitive position of this Commonwealth's industries. |
24 | (11) Compliance with the loan amount limitations |
25 | provided for machinery and equipment loans. |
26 | (12) Payment to date of all tax obligations due and |
27 | owing to the Commonwealth or any political subdivision |
28 | thereof. |
29 | (13) Conformity of all aspects of the loan transaction |
30 | with the substantive and procedural provisions of this |
|
1 | chapter and regulations promulgated hereunder. |
2 | (14) Such information and documentation as the secretary |
3 | shall require. |
4 | (d) Notification.--The secretary shall notify the applicant |
5 | of final approval or disapproval of the loan application within |
6 | a reasonable period of time following the receipt of the |
7 | application. In the case of approval of a loan application, the |
8 | secretary shall arrange to draw the loan amount from the fund |
9 | and advance the sum to the recipient. The advance shall be made |
10 | available in the form of a loan transaction, which loan shall be |
11 | evidenced by a note executed by the recipient and secured in a |
12 | manner as the secretary shall require in conformity in all |
13 | respects to the loan as approved by the secretary. |
14 | (e) Policy requirements and report.--All loans shall be |
15 | administered and monitored by the department in accordance with |
16 | the policies and procedures prescribed by the secretary. On or |
17 | before September 1 of each year, the secretary shall prepare a |
18 | report that includes the following: |
19 | (1) Each outstanding loan. |
20 | (2) The date of approval. |
21 | (3) The original principal balance. |
22 | (4) The current principal balance. |
23 | (5) The interest rate. |
24 | (6) The purpose for which the loan was made. |
25 | (7) An enumeration of any problems or issues which have |
26 | arisen with regard to each loan. |
27 | (8) A statement regarding the progress of the business |
28 | enterprise in creating and retaining its requisite number of |
29 | employment opportunities. |
30 | (9) Such other information and documentation as the |
|
1 | secretary shall require. |
2 | (f) Penalty for noncompliance.--In the event that a loan |
3 | recipient shall not comply with its approved application by |
4 | failing to create or preserve the number of employment |
5 | opportunities specified in its approved application, the |
6 | secretary shall impose a penalty equal to an increase in the |
7 | interest rate to 2% greater than the current prime interest rate |
8 | for the remainder of the loan unless the penalty is waived by |
9 | the secretary because the failure is due to circumstances |
10 | outside the control of the loan recipient. The penalty shall be |
11 | payable in installments that the secretary deems appropriate. |
12 | § 2907. Powers of secretary. |
13 | The secretary shall have and may exercise all powers and |
14 | authority necessary to the proper administration and |
15 | implementation of this chapter and shall have the authority to |
16 | adopt policies, procedures and guidelines and promulgate rules |
17 | and regulations necessary to effectuate the provisions of this |
18 | chapter. |
19 | § 2908. Reporting and inspection. |
20 | (a) Inspection.--Each business enterprise which applies for |
21 | or receives assistance under this chapter, upon reasonable |
22 | request of the department, shall permit duly authorized |
23 | employees of the department to inspect the plant, books and |
24 | records of the business enterprise. |
25 | (b) Updating.--Each business enterprise shall update the |
26 | information given to the department in its application if |
27 | conditions change or to the extent that the information given |
28 | originally becomes inaccurate or misleading. |
29 | (c) Periodic reports.--Each recipient of assistance under |
30 | this chapter shall provide the department with periodic |
|
1 | financial reports as the secretary may require until such time |
2 | as the loan is paid off. |
3 | § 2909. Nondiscrimination. |
4 | No loan shall be made to a business enterprise unless the |
5 | business enterprise certifies to the department, in a form |
6 | satisfactory to the department, that it shall not discriminate |
7 | against any employee or any applicant for employment because of |
8 | race, religion, color, national origin, sex or age. The business |
9 | enterprise shall also certify to the department that it is not |
10 | currently under citation for pollution violations and that in |
11 | the future it will meet all applicable antipollution standards. |
12 | § 2910. Conflict of interest. |
13 | No employee of the department shall, either directly or |
14 | indirectly, be a party to or have any financial interest in any |
15 | contract or agreement arising pursuant to this chapter. |
16 | § 2911. Reports to General Assembly. |
17 | (a) Annual reports.--On or before September 1 of each year, |
18 | the secretary shall provide a report to the Secretary of the |
19 | Senate and to the Chief Clerk of the House of Representatives. |
20 | The report shall describe all relevant activities of the |
21 | department pursuant to this chapter and shall include the |
22 | following: |
23 | (1) List of business enterprises receiving loans from |
24 | the fund and the amounts and terms of this assistance. |
25 | (2) Loan amounts repaid. Information under this |
26 | paragraph may be reported in the aggregate. |
27 | (3) Loans outstanding, balances due and any penalties |
28 | imposed. Information under this paragraph may be reported in |
29 | the aggregate. |
30 | (4) Jobs created by businesses receiving funds in |
|
1 | previous years. Information under this paragraph may be |
2 | reported in the aggregate. |
3 | (5) Other relevant information as determined by the |
4 | secretary. |
5 | (b) Availability of departmental reports.--Reports prepared |
6 | by the secretary under section 2906(e) (relating to application |
7 | and administration) shall be made available upon request to |
8 | members of the General Assembly. |
9 | § 2912. Guidelines. |
10 | The department shall develop written guidelines for the |
11 | implementation of this chapter.] |
12 | Section 2. Title 64 is amended by adding a section to read: | <-- |
13 | § 1545. Transfer of funds. |
14 | The authority may transfer funds to the Liberty Financing |
15 | Authority established under Chapter 17 (relating to Liberty |
16 | Financing Authority) with the approval of a super-majority of |
17 | the board. The Liberty Financing Authority may approve a |
18 | transfer from the authority by acting under section 1712(e) |
19 | (relating to board). |
20 | Section 3. Title 64 is amended by adding a chapter to read: |
21 | Section 2. Section 1542(b) of Title 64 is amended to read: | <-- |
22 | § 1542. Revolving loan program accounts. |
23 | * * * |
24 | [(b) The First Industries Program account.--The authority |
25 | shall establish an account for the program established in |
26 | section 1552 (relating to First Industries Program). Proceeds of |
27 | bonds issued to fund the First Industries Program, any moneys |
28 | received as loan repayments or in repayment or recovery of loan |
29 | guarantees under the program, or moneys otherwise made available |
30 | to the program, shall be deposited in the account and made |
|
1 | available for additional planning grants or loans or used for |
2 | additional loan guarantees as provided in section 1552, subject |
3 | to the provisions of any pledge to or agreement made by the |
4 | authority with obligees of the authority.] |
5 | Section 3. Section 1552 of Title 64, amended June 30, 2011 |
6 | (P.L.193, No.27), is repealed: |
7 | [§ 1552. First Industries Program. |
8 | (a) Establishment.--There is established a program to be |
9 | known as the First Industries Program. The program shall provide |
10 | financial assistance for projects related to tourism and |
11 | agriculture located within this Commonwealth. The board shall |
12 | allocate funds made available to the program among the different |
13 | methods of financing authorized in this section. |
14 | (b) Applications for planning grants.--An applicant may |
15 | submit an application to the authority requesting a planning |
16 | grant in an amount not to exceed $250,000 for the costs of |
17 | predevelopment activities and feasibility studies for a project |
18 | related to tourism or agriculture. The application shall be on |
19 | the form required by the board and shall include or demonstrate |
20 | all of the following: |
21 | (1) The applicant's name and address. |
22 | (2) The location of the project. |
23 | (3) A description of the project. |
24 | (4) An estimate of the cost of the predevelopment |
25 | activities and feasibility studies and the goal to be |
26 | achieved by carrying out the proposed activities or studies. |
27 | (5) A statement of the amount of the planning grant |
28 | sought. |
29 | (6) Any other information required by the board. |
30 | (c) Review and approval of planning grant applications.-- |
|
1 | (1) The board shall review the application to determine |
2 | that the project demonstrates one or more of the following: |
3 | (i) The project will have a demonstrable impact on |
4 | the economy or well-being of the neighborhood, community |
5 | or region where the project will be located. |
6 | (ii) The project will promote research and |
7 | development efforts leading to increased |
8 | commercialization or utilization of farm commodities. |
9 | (iii) The project will result in environmentally |
10 | friendly or energy efficient operations related to |
11 | agriculture, including projects authorized by the act of |
12 | December 12, 1994 (P.L.888, No.128), known as the |
13 | Agricultural By-Product Management Technology Act. |
14 | (iv) The project will result in more cost-effective |
15 | and efficient marketing of regional assets related to |
16 | tourism or agriculture. |
17 | (v) The project will result in a substantial |
18 | increase in revenues for the Commonwealth or the host |
19 | municipality. |
20 | (vi) The project proposes to utilize Commonwealth- |
21 | owned natural resources for public/private development of |
22 | tourism. |
23 | (2) Upon being satisfied that the requirements of |
24 | paragraph (1) have been met, the board may approve the |
25 | application, and, if approved, the authority shall award a |
26 | planning grant. |
27 | (3) Copies of all reports and studies prepared with |
28 | planning grant funds shall be filed with the authority and |
29 | shall be made available to any person upon request. |
30 | (d) Loans to applicants.--If the department approves an |
|
1 | application for a loan under the programs established in 12 |
2 | Pa.C.S. Ch. 23 (relating to small business first) or 29 |
3 | (relating to machinery and equipment loans), the department may |
4 | request that the authority finance the loan. Upon being |
5 | satisfied that the project is related to agriculture or tourism, |
6 | the board may approve the request, and, if approved, the |
7 | authority shall award a loan. Loans made under this subsection |
8 | shall be administered by the department. Payments received shall |
9 | be forwarded to the authority and credited to the account |
10 | established in accordance with section 1542(b) (relating to |
11 | revolving loan program accounts). |
12 | (e) Loan guarantees.-- |
13 | (1) An applicant may request a guarantee for a loan to |
14 | be made by a commercial lending institution or community |
15 | development financial institution to assist with the |
16 | financing of a project related to tourism or agriculture. The |
17 | applicant may be the commercial lending institution or |
18 | community development financial institution applying on |
19 | behalf of a borrower. The application must be on the form |
20 | required by the board and must include or demonstrate all of |
21 | the following: |
22 | (i) The applicant's name and address. If the |
23 | applicant is a commercial lending institution or |
24 | community development financial institution, the |
25 | borrower's name and address. |
26 | (ii) A description of the project. |
27 | (iii) A statement describing the anticipated |
28 | economic impact to the Commonwealth and the host |
29 | municipality as a result of the project. |
30 | (iv) A description of the proposed project |
|
1 | financing, including terms, conditions and the collateral |
2 | or security required for the loan for which the guarantee |
3 | is being requested. |
4 | (v) A copy of the applicant's last two years of |
5 | financial statements prepared or reported on by an |
6 | independent certified public accountant. If the applicant |
7 | is a commercial lending institution or a community |
8 | development financial institution, a copy of the |
9 | borrower's last two years of financial statements |
10 | prepared or reported on by an independent certified |
11 | public accountant. |
12 | (vi) The amount of the loan guarantee that is being |
13 | requested. |
14 | (vii) The total project cost and the identification |
15 | of all sources of capital for the project. |
16 | (viii) Any other information required by the board. |
17 | (2) The board shall review the application to determine |
18 | all of the following: |
19 | (i) (A) Except as set forth in clause (B), that the |
20 | project has been awarded a planning grant under this |
21 | section or that at least $1,000,000 of private funds |
22 | are being invested in the project. |
23 | (B) Beginning on the effective date of this |
24 | paragraph through July 15, 2015, that the project has |
25 | been awarded a planning grant under this section or |
26 | that at least $500,000 of private funds are being |
27 | invested in the project. |
28 | (ii) That the value of the proposed collateral is |
29 | sufficient to cover the full amount of the loan. |
30 | (iii) That the applicant complied with all other |
|
1 | criteria established by the board. |
2 | (3) Upon being satisfied that all requirements have been |
3 | met, the board may approve the guarantee, and, if approved, |
4 | the authority shall execute a guarantee agreement in favor of |
5 | the commercial lending institution or community development |
6 | financial institution stating the terms and amounts of the |
7 | guarantee. Except as provided in paragraph (3.1), the |
8 | guarantee may not exceed 50% of the outstanding principal |
9 | amount of the loan or $2,500,000 at any point in time, |
10 | whichever is less. In addition to any other terms and |
11 | conditions required by the board, the guarantee agreement |
12 | shall provide for all of the following: |
13 | (i) The procedure for the submission by the |
14 | commercial lending institution or community development |
15 | financial institution of a claim for payment. This |
16 | procedure shall require that the commercial lending |
17 | institution or community development financial |
18 | institution demonstrate that it has exhausted all |
19 | available remedies against the borrower, other guarantors |
20 | and collateral before seeking payment under the |
21 | agreement. |
22 | (ii) A requirement that a percentage of any moneys |
23 | recovered subsequent to the payment of a claim by the |
24 | authority be remitted to the authority. |
25 | (iii) Periodic reporting requirements by the |
26 | commercial lending institution or community development |
27 | financial institution regarding itself and regarding the |
28 | loans which have been awarded guarantees under this |
29 | section. |
30 | (3.1) Beginning on the effective date of this paragraph |
|
1 | through July 15, 2015, a guarantee of 51% to 90% of the |
2 | principal amount of the loan to assist with the financing of |
3 | a project related to agriculture may be awarded by the board. |
4 | The guarantee shall be subject to a one-time fee of 2% of the |
5 | amount of the loan multiplied by the percentage of the |
6 | guarantee. |
7 | (3.2) The amount of a guarantee under this subsection, |
8 | if any, shall be set at the discretion of the board based |
9 | upon its determination of the potential financial risk to the |
10 | Commonwealth. |
11 | (4) The board may establish a subcommittee composed of |
12 | one or more board members and department staff to supervise |
13 | the progress of projects for which loan guarantees have been |
14 | awarded under this section. |
15 | (e.1) Limitation.--A Farm Credit Institution under the Farm |
16 | Credit Act of 1971 (Public Law 92-181, 85 Stat. 583) shall only |
17 | be permitted to participate in the First Industries Program |
18 | established under this section and may not participate in any |
19 | other loan guarantee program established under this chapter. |
20 | (e.2) Sunset.--After July 15, 2015, no Farm Credit |
21 | Institution under the Farm Credit Act of 1971 shall be eligible |
22 | for any loan guarantees under this chapter. |
23 | (f) Limitations.-- |
24 | (1) No more than $10,000,000 of the funds available for |
25 | the program authorized by this section may be used for |
26 | planning grants awarded under subsection (c). |
27 | (2) At least two-thirds of the funds available for the |
28 | program authorized by this section shall be used for |
29 | financing of projects related to agriculture.] |
30 | Section 4. Section 1553 of Title 64 is repealed: |
|
1 | [§ 1553. Second Stage Loan Program. |
2 | (a) Establishment.--There is established a program to be |
3 | known as the Second Stage Loan Program. The program shall |
4 | provide loan guarantees to commercial lending institutions that |
5 | make loans to life sciences, advanced technology or |
6 | manufacturing businesses. |
7 | (b) Application for enrollment.--A commercial lending |
8 | institution may apply for enrollment in the program authorized |
9 | by this section. The application shall be on the form prescribed |
10 | by the board and shall include or demonstrate all of the |
11 | following: |
12 | (1) The name and address of the commercial lending |
13 | institution and the name and title of the individual who will |
14 | serve as the point of contact for the commercial lending |
15 | institution. |
16 | (2) A statement defining the service area of the |
17 | commercial lending institution. |
18 | (3) A statement describing the commercial lending |
19 | activities engaged in by the commercial lending institution |
20 | and how the institution intends to expand those activities as |
21 | a result of its participation in the program authorized by |
22 | this section. |
23 | (4) Any other information required by the board. |
24 | (c) Enrollment approval.--Upon being satisfied that all |
25 | requirements have been met, the board may enroll the commercial |
26 | lending institution in the program authorized by this section, |
27 | and, if enrolled, the authority shall execute a master guarantee |
28 | agreement in favor of the commercial lending institution. In |
29 | addition to any other terms and conditions required by the |
30 | board, the master guarantee agreement shall provide for the |
|
1 | following: |
2 | (1) The procedure for the submission of a claim for |
3 | payment by the commercial lending institution. This procedure |
4 | shall require that the commercial lending institution |
5 | demonstrate that it has exhausted all available remedies |
6 | against the borrower, other guarantors and collateral for the |
7 | loan before seeking payment under the agreement. |
8 | (2) A requirement that a percentage of any moneys |
9 | recovered by the commercial lending institution subsequent to |
10 | any payment made under the master guarantee agreement by the |
11 | authority be remitted to the authority. |
12 | (3) Periodic reporting requirements by the commercial |
13 | lending institution regarding itself and regarding the loans |
14 | for which guarantee certificates have been issued under this |
15 | section. |
16 | (d) Application for guarantee.--A commercial lending |
17 | institution enrolled in the program authorized by this section |
18 | may submit an application to the authority for the guarantee of |
19 | a proposed loan. The application shall be on the form prescribed |
20 | by the board and shall include or demonstrate all of the |
21 | following: |
22 | (1) The name and address of the borrower, the type of |
23 | business the borrower conducts, the location and age of the |
24 | business and the names and addresses of the principals of the |
25 | borrower. |
26 | (2) The number of projected new or retained employees of |
27 | the borrower as a result of the loan. |
28 | (3) A copy of the borrower's last two years of financial |
29 | statements prepared or reported on by an independent |
30 | certified public accountant. |
|
1 | (4) A statement describing the purpose of the loan, the |
2 | requested amount of the loan, a copy of the commercial |
3 | lending institution's commitment letter and applicable credit |
4 | underwriting that supports the repayment of the loan, as well |
5 | as the collateral and other guarantees offered by the |
6 | borrower to support the loan. |
7 | (5) Any other information required by the board. |
8 | (e) Application review.-- |
9 | (1) The board shall review the application to determine |
10 | all of the following: |
11 | (i) That the borrower owns and operates a life |
12 | sciences, advanced technology or manufacturing business. |
13 | (ii) That the borrower's business has been in |
14 | existence for at least two years but no more than seven |
15 | years at the time of application. |
16 | (iii) That the borrower is financially responsible |
17 | and has the ability to repay the loan. |
18 | (iv) That the use of loan proceeds by the borrower |
19 | will result in jobs being created or retained within this |
20 | Commonwealth. |
21 | (v) That the borrower's business is located within |
22 | the commercial lending institution's service area and |
23 | within this Commonwealth. |
24 | (vi) That the borrower and the commercial lending |
25 | institution have met all other requirements established |
26 | by the board. |
27 | (2) Upon being satisfied that all requirements have been |
28 | met, the board may approve the guarantee, and, if approved, |
29 | the authority shall issue a guarantee certificate for the |
30 | loan to the commercial lending institution stating the terms |
|
1 | and amount of the guarantee. |
2 | (3) The board may establish a subcommittee composed of |
3 | one or more members of the board and staff of the department |
4 | to review and approve applications for guarantees under this |
5 | section. |
6 | (f) Limitations.-- |
7 | (1) During the first two years of the term of a loan for |
8 | which a guarantee certificate has been issued, the guarantee |
9 | may not exceed 50% of the outstanding principal amount of the |
10 | loan. From the end of year two through either the end of year |
11 | seven or the end of the term of the loan, whichever occurs |
12 | first, the guarantee may not exceed 25% of the outstanding |
13 | principal amount of the loan. The guarantee will terminate at |
14 | the end of seven years. |
15 | (2) At no time may a guarantee exceed $1,000,000 for any |
16 | one loan.] |
17 | Section 5. Title 64 is amended by adding a chapter to read: |
18 | CHAPTER 17 |
19 | LIBERTY FINANCING AUTHORITY |
20 | Subchapter |
21 | A. General Provisions |
22 | B. Structure and Powers |
23 | C. Bonds |
24 | D. Accounts |
25 | E. Programs |
26 | F. Miscellaneous Provisions |
27 | SUBCHAPTER A |
28 | GENERAL PROVISIONS |
29 | Sec. |
30 | 1701. Scope of chapter. |
|
1 | 1702. Construction. |
2 | 1703. Findings and declaration of policy. |
3 | 1704. Definitions. |
4 | § 1701. Scope of chapter. |
5 | This chapter relates to the Liberty Financing Authority. |
6 | § 1702. Construction. |
7 | (a) General rule.--This chapter shall be liberally prudently | <-- |
8 | construed in order to effect the legislative and public purposes |
9 | as set forth in this subchapter. |
10 | (b) Rights of obligees.--The provisions of this chapter |
11 | providing for security, rights and remedies of obligees of the |
12 | authority shall be liberally prudently construed to achieve the | <-- |
13 | legislative and public purposes as public policy set forth in | <-- |
14 | this subchapter. |
15 | (c) Limitation.--If a provision of this chapter is judged to |
16 | be invalid by a court of competent jurisdiction, the order or |
17 | judgment shall be confined in its operation to the controversy |
18 | in which it was rendered and shall not affect or invalidate a |
19 | remaining provision of this chapter. |
20 | § 1703. Findings and declaration of policy. |
21 | The General Assembly finds and declares as follows: |
22 | (1) Many existing businesses in this Commonwealth could |
23 | expand or otherwise and become more competitive if provided | <-- |
24 | with additional sources of financing for modernization, |
25 | expansion and other capital needs. This, in turn, could |
26 | increase employment levels, which would help to develop a |
27 | stable and healthy economy and revitalize communities, |
28 | thereby improving the health, safety and general welfare of |
29 | the citizens of this Commonwealth. |
30 | (2) A minimum level of unemployment and a maximum level |
|
1 | of business opportunity can best be attained through the |
2 | promotion, stimulation and revitalization of industrial, |
3 | manufacturing, commercial, technological, agricultural and | <-- |
4 | tourism activities in this Commonwealth. Through such |
5 | efforts, the Commonwealth's competitiveness in the global | <-- |
6 | economy may also global and United States economies may be | <-- |
7 | enhanced. |
8 | (3) The Commonwealth has developed a great number of |
9 | programs with the objective of furthering these economic | <-- |
10 | purposes economic development within its borders. There have | <-- |
11 | also been a correspondingly great number of boards and |
12 | authorities to administer the various programs. While many of |
13 | these economic development programs have been successful, |
14 | others have fallen short. |
15 | (4) The economic health of our communities will improve |
16 | and efficiency and transparency will increase by eliminating | <-- |
17 | programs that have not worked for this Commonwealth, keeping | <-- |
18 | those that perform and consolidating the management of the |
19 | remaining programs will increase efficiency and transparency | <-- |
20 | successful programs that remain. | <-- |
21 | (5) The Liberty Financing Authority shall fund disburse | <-- |
22 | the money for and administer the economic development |
23 | programs encompassed in this chapter. It shall do so with the |
24 | prudence, proficiency and transparency that the citizens of |
25 | this Commonwealth expect, and will have as resources the |
26 | expertise and administrative assistance of the Department of |
27 | Community and Economic Development, as well as the other |
28 | State agencies. Resources will be more accessible to |
29 | businesses in this Commonwealth, citizens will be able to see |
30 | where their tax dollars are being invested and the overall |
|
1 | health of this Commonwealth's economy will improve, beginning |
2 | in individual communities and spreading throughout this |
3 | Commonwealth. |
4 | § 1704. Definitions. |
5 | The following words and phrases when used in this chapter |
6 | shall have the meanings given to them in this section unless the |
7 | context clearly indicates otherwise: |
8 | "Agricultural processor." An entity that adds value by |
9 | subjecting one or more farm commodities to a process of |
10 | manufacture, development or preparation for sale or a person |
11 | that converts a farm product into a marketable form. |
12 | "Agricultural producer." A person or entity involved in the |
13 | management and use of an agricultural operation for the |
14 | production of a farm commodity. |
15 | "Agriculture." Any of the following: |
16 | (1) the management and use of an agricultural operation |
17 | for the production of a farm commodity; |
18 | (2) the sale of farm commodities at wholesale; |
19 | (3) the sale of farm commodities at retail by |
20 | supermarkets or farmers' markets; or |
21 | (4) energy-related activities impacting production |
22 | agriculture. |
23 | "Authority." The Liberty Financing Authority established in |
24 | section 1711 (relating to authority). |
25 | "Board." The board of the Liberty Financing Authority |
26 | established in section 1712 (relating to board). |
27 | "Bonds." Except where otherwise provided, bonds, notes, |
28 | instruments, refunding notes and bonds and other evidences of |
29 | indebtedness or obligations which the Liberty Financing |
30 | Authority is authorized to issue or assume under this chapter. |
|
1 | "Business." A corporation, partnership, sole proprietorship, |
2 | limited liability company, business trust or other commercial |
3 | entity. The term shall include not-for-profit entities. |
4 | "Capital development project." The acquisition, development, |
5 | construction, renovation or use of land, buildings, equipment |
6 | and machinery and working capital by a business as part of: |
7 | (1) A for-profit venture not of a mercantile or service- |
8 | related nature, except for hospitality industry projects. |
9 | (2) An effort to: |
10 | (i) comply with Federal or State environmental laws |
11 | or regulations; |
12 | (ii) complete an approved remediation project; or |
13 | (iii) adopt generally acceptable pollution |
14 | prevention practices. |
15 | (3) An effort to recycle municipal or commercial waste, |
16 | or to use recycled municipal or commercial waste materials in |
17 | manufacturing. |
18 | (4) A for-profit project or venture to manufacture |
19 | products to be exported out of the United States, which will |
20 | increase this Commonwealth's market share. |
21 | "Commercial lending activities." The making of loans and the |
22 | provision of deposit services to business entities, except that |
23 | a farm credit system institution under the Farm Credit Act of |
24 | 1971 (Public Law 92-181, 85 Stat. 583) need not offer deposit |
25 | services to qualify as a provider of commercial lending |
26 | activities under this chapter. |
27 | "Commercial lending institutions institution." A federally | <-- |
28 | chartered or State-chartered bank, savings bank, savings and |
29 | loan association or farm credit system institution under the |
30 | Farm Credit Act of 1971 (Public Law 92-181, 85 Stat. 583) which |
|
1 | has a satisfactory rating from its primary regulator and which |
2 | is engaged in commercial lending activities. The institution |
3 | must operate at least one full-service branch for deposit |
4 | gathering and lending located within this Commonwealth or be a |
5 | farm credit system institution under the Farm Credit Act of |
6 | 1971. |
7 | "Commonwealth agency." An agency, authority or other |
8 | instrumentality of the Commonwealth. |
9 | "Community development financial institution." A community |
10 | development financial institution certified in accordance with |
11 | the Community Development Banking and Financial Institutions Act |
12 | of 1994 (Public Law 103-325, 108 Stat. 2163). |
13 | "Comprehensive county plan" or "comprehensive municipal |
14 | plan." The comprehensive plan adopted under applicable law by a |
15 | county, municipality, city of the first class or city of the |
16 | second class. |
17 | "Consumer energy conservation project." The purchase or | <-- |
18 | installation of any of the following: |
19 | (1) energy-efficient windows and doors; |
20 | (2) geothermal heat pumps; |
21 | (3) insulation, air-sealing and other energy-saving |
22 | projects approved by the Department of Environmental |
23 | Protection; |
24 | (4) energy-efficient or alternative energy heating and |
25 | cooling equipment or systems; |
26 | (5) energy-efficient solid fuel residential furnaces, as |
27 | approved by the Department of Environmental Protection, to |
28 | include furnaces that burn coal or wood pellets; or |
29 | (6) energy-efficient lighting systems. |
30 | "Cost of the project" or "cost." Any of the following: |
|
1 | (1) Costs and expenses of acquisition of interests in |
2 | land, infrastructure, buildings, structures, equipment, |
3 | furnishings, fixtures and other tangible or intangible |
4 | property. |
5 | (2) Costs and expenses of construction, reconstruction, |
6 | erection, equipping, expansion, extension, improvement, |
7 | installation, rehabilitation, renovation or repair of the |
8 | buildings, structures and equipment. |
9 | (3) Costs and expenses of demolishing, removing or |
10 | relocating buildings or structures on lands acquired or to be |
11 | acquired and the expense of acquiring land to which buildings |
12 | or structures may be moved or relocated. |
13 | (4) Costs and expenses of preparing land for |
14 | development. |
15 | (5) Costs and expenses incidental to determining the |
16 | feasibility or practicality of the project, including |
17 | engineering, legal and accounting and financial services, as |
18 | well as any necessary studies or surveys. No more than 10% of | <-- |
19 | grant or loan funds may be used under this paragraph. |
20 | (6) Working capital or other capital needs related to |
21 | the project. |
22 | "Data center." A facility used to house computer systems and | <-- |
23 | associated components, such as telecommunications and storage |
24 | systems. |
25 | "Data center consolidation project." A project, as |
26 | determined by the Liberty Financing Authority, that utilizes |
27 | server virtualization technology to consolidate and reduce the |
28 | required number of servers at a data center for the purpose of |
29 | increased energy efficiency and reduced energy demand. |
30 | "Department." Except where otherwise provided, the |
|
1 | Department of Community and Economic Development of the |
2 | Commonwealth. |
3 | "Distressed community." Any of the following: |
4 | (1) A geographic area in which: | <-- |
5 | (i) the median income is below 80% of the median |
6 | income for the United States or this Commonwealth; |
7 | (ii) 20% or more of the population is below the |
8 | poverty level by family size published by the United |
9 | States Bureau of the Census; or |
10 | (iii) the unemployment rate is 50% higher than the |
11 | national average. |
12 | (2) (1) An area which is designated a subzone, expansion | <-- |
13 | subzone or improvement subzone under the act of October 6, |
14 | 1998 (P.L.705, No.92), known as the Keystone Opportunity |
15 | Zone, Keystone Opportunity Expansion Zone and Keystone |
16 | Opportunity Improvement Zone Act. |
17 | (3) (2) Any other area designated as distressed | <-- |
18 | according to standards adopted by the Liberty Financing |
19 | Authority. |
20 | "Economic development organization." A community development | <-- |
21 | financial institution, an industrial development agency or a |
22 | local development district that is certified by the authority as |
23 | possessing the qualifications necessary to evaluate and approve |
24 | applications to the authority for financial assistance. |
25 | "Ex-Im Bank." The Export-Import Bank of the United States. |
26 | "Exports." Goods or services to be sold or performed outside |
27 | the United States. |
28 | "Export business." Any for-profit corporation, limited |
29 | liability company, partnership, proprietorship or other business |
30 | entity involving export activities and employing 250 or fewer |
|
1 | individuals. |
2 | "Farm commodity." Any agricultural, horticultural, |
3 | aquacultural, vegetable, fruit and floricultural product of the |
4 | soil, livestock and meats, wools, hides, furs, poultry, eggs, |
5 | dairy products, nuts, mushrooms, honey products and forest |
6 | products. |
7 | "Federal agency." The United States of America, the |
8 | President of the United States, the Congress of the United |
9 | States and any department, corporation, agency or |
10 | instrumentality designated or established by the United States |
11 | of America. |
12 | "Governing body." The body or board authorized by law to |
13 | enact ordinances or adopt resolutions for a political |
14 | subdivision. |
15 | "Hazardous substance." Any element, compound or material |
16 | which is: |
17 | (1) Regulated as a hazardous air pollutant under section |
18 | 6.6 of the act of January 8, 1960 (1959 P.L.2119, No.787), |
19 | known as the Air Pollution Control Act. |
20 | (2) A hazardous waste, as defined under section 103 of |
21 | the act of July 7, 1980 (P.L.380, No.97), known as the Solid |
22 | Waste Management Act. |
23 | (3) Regulated under the act of December 7, 1990 |
24 | (P.L.639, No.165), known as the Hazardous Material Emergency |
25 | Planning and Response Act. |
26 | "Hospitality industry project." A for-profit project or |
27 | venture which involves a business that operates a hotel, motel |
28 | or other lodging facility, or a restaurant or other food service |
29 | operation that is open to the public. |
30 | "Industrial development agency." A nonprofit organization |
|
1 | which has as its purpose the promotion, encouragement, |
2 | construction, development and expansion of new or existing |
3 | industrial development projects. |
4 | "Industrial development project." A project sponsored by an |
5 | industrial development agency economic development organization | <-- |
6 | involving the acquisition or improvement of real property within |
7 | this Commonwealth to be occupied and operated by any of the |
8 | following: |
9 | (1) An industrial enterprise. |
10 | (2) A manufacturing enterprise. |
11 | (3) A research and development enterprise. |
12 | (4) An agricultural producer. |
13 | (5) An agricultural processor. |
14 | "Industrial enterprise." An enterprise other than a |
15 | mercantile, commercial or retail enterprise which has created or |
16 | will create substantial employment opportunities. The term may |
17 | include warehouses, terminal facilities and office buildings |
18 | utilized as national or regional headquarters or computer or |
19 | clerical operations centers. |
20 | "Industrial park." Land areas acquired, including existing | <-- |
21 | buildings previously erected thereon, excluding existing |
22 | buildings, if any, improved and prepared by an industrial |
23 | development agency in accordance with plans and specifications |
24 | as approved by the Liberty Financing Authority as sites for the |
25 | establishment thereon of two or more industrial development |
26 | projects. |
27 | "Issuing authority." As defined in section 3 of the act of |
28 | July 11, 1990 (P.L.465, No.113), known as the Tax Increment |
29 | Financing Act. |
30 | "Industrial park project." A project sponsored by an | <-- |
|
1 | economic development organization for the purpose of creating |
2 | sites for the establishment of two or more industrial |
3 | development projects. |
4 | "Local development district." Multicounty economic and |
5 | community development organizations established under the act of |
6 | December 7, 1994 (P.L.845, No.120), known as the Local |
7 | Development District Act, to provide regional planning and |
8 | development services to improve the economy and quality of life |
9 | in their respective regions through a variety of activities, |
10 | including, but not limited to, the fostering of public and |
11 | private partnerships and providing assistance to businesses. |
12 | "Manufacturing enterprise." An enterprise which is engaged |
13 | in the giving of new shapes, new qualities or new combinations |
14 | to matter by the application of skill and labor. |
15 | "Multiple-tenancy building project." Any A project sponsored | <-- |
16 | by an economic development organization involving the |
17 | acquisition or construction of any land, site, structure, | <-- |
18 | facility or undertaking acquired or constructed by an industrial |
19 | development agency or facility for occupancy by two or more | <-- |
20 | industrial enterprises, manufacturing enterprises, research and |
21 | development enterprises, agricultural producers or agricultural |
22 | processors, as those terms are defined in this chapter. |
23 | "Municipal authority." A public authority created under 53 |
24 | Pa.C.S. Ch. 56 (relating to municipal authorities) or under the |
25 | former act of May 2, 1945 (P.L.382, No.164), known as the |
26 | Municipality Authorities Act of 1945. |
27 | "Municipality." Any city, borough, town or township of the |
28 | Commonwealth, each of which political subdivisions are separate |
29 | incorporated municipalities of the Commonwealth for the purposes |
30 | of this chapter. |
|
1 | "Natural disaster." As defined in 35 Pa.C.S. § 7102 |
2 | (relating to definitions). |
3 | "Normal agricultural operation." As defined in the act of |
4 | June 10, 1982 (P.L.454, No.133), referred to as the Right-to- |
5 | Farm Law. |
6 | "Obligee of the authority." Any of the following: |
7 | (1) A holder or owner of bonds of the Liberty Financing |
8 | Authority, the Commonwealth Financing Authority, the | <-- |
9 | Pennsylvania Industrial Development Authority or the |
10 | Pennsylvania Minority Business Development Authority. |
11 | (2) A trustee or other fiduciary for any holder or owner |
12 | of bonds of the Liberty Financing Authority or its |
13 | predecessors. |
14 | (3) A provider of a letter of credit, policy of |
15 | municipal bond insurance or other credit enhancement or |
16 | liquidity facility for bonds of the Liberty Financing |
17 | Authority or its predecessors. |
18 | (4) A lessor or installment seller demising property to |
19 | the Liberty Financing Authority or its predecessors in |
20 | connection with a project. |
21 | (5) A provider of an interest rate management agreement |
22 | or other agreement or arrangement authorized under section |
23 | 1714 (relating to powers). |
24 | "Pennsylvania-related company." A business entity which has |
25 | significant operations in this Commonwealth or which will, as a |
26 | condition of any agreement under this chapter, locate |
27 | significant business operations in this Commonwealth. |
28 | "Philadelphia metropolitan statistical area." The |
29 | Philadelphia, Pennsylvania, metropolitan division of the |
30 | Philadelphia-Camden-Wilmington, Pennsylvania-New Jersey, |
|
1 | Delaware-Maryland metropolitan statistical area as announced on |
2 | June 6, 2003, by the United States Office of Management and |
3 | Budget under standards for defining metropolitan and |
4 | micropolitan statistical areas by the Office of Management and |
5 | Budget for the 2000 decennial census of the United States Bureau |
6 | of the Census as published in the Federal Register, Vol. 65, No. |
7 | 249, on December 27, 2000, comprising the Pennsylvania counties |
8 | of Philadelphia, Delaware, Bucks, Montgomery and Chester. |
9 | "Pollution control technology project." The acquisition, |
10 | construction or installation of pollution control technology and |
11 | equipment that enables an electric generating unit or |
12 | cogeneration unit to meet any of the following requirements: |
13 | (1) Mercury emission reductions. |
14 | (2) The regulations adopted by the United States |
15 | Environmental Protection Agency known as the Clean Air |
16 | Mercury Rule codified at 40 CFR Pts. 60 (relating to |
17 | standards of performance for new stationary sources), 72 |
18 | (relating to permits regulation) and 75 (relating to |
19 | continuous emission monitoring). |
20 | (3) Nitrogen oxides and sulfur dioxide emission |
21 | reduction under 25 Pa. Code Chs. 121 (relating to interstate |
22 | pollution transport reduction) and 145 (relating to general |
23 | provisions). |
24 | (4) The Clean Air Interstate Rule in 40 CFR Pt. 96 |
25 | (relating to NOX budget trading program and CAIR NOX and SO2 |
26 | trading programs for state implementation plans). |
27 | "Predecessors." The Pennsylvania Industrial Development |
28 | Authority or the Pennsylvania Minority Business Development |
29 | Authority. |
30 | "Private developer." A person or entity engaged in the |
|
1 | development of real estate and determined by the Liberty |
2 | Financing Authority to be financially responsible to assume all |
3 | obligations proposed to be undertaken. |
4 | "Production agriculture." The management and use of a normal |
5 | agricultural operation for the production of a farm commodity. |
6 | "Project user." A person, political subdivision, municipal |
7 | authority, Commonwealth agency or other entity that owns, leases |
8 | or uses all or any part of a project. |
9 | "Redevelopment authority." An entity created under the act |
10 | of May 24, 1945 (P.L.991, No.385), known as the Urban |
11 | Redevelopment Law. |
12 | "Research and development enterprise." An enterprise for the |
13 | discovery of new and the refinement of known substances, |
14 | processes, products, theories and ideas. The term does not |
15 | include enterprise activities directed primarily to the |
16 | accumulation or analysis of commercial, financial or mercantile |
17 | data. |
18 | "Server." A device on a computer network that manages |
19 | network resources, including devices to manage network traffic, |
20 | store files or process database queries. |
21 | "Server virtualization technology." The practice of hosting |
22 | a software operating system within a virtual machine. |
23 | "Site preparation project." The construction of water and |
24 | sewer lines, storm water systems, excavation, construction of |
25 | access roads, parking facilities, pipelines, transformers and |
26 | utility transmission lines and traffic control devices. |
27 | "Small business." A for-profit An enterprise that employs | <-- |
28 | fewer than 100 persons, in the aggregate, on an annual basis. |
29 | "Supermarket." A retail store operated on a self-service |
30 | basis, primarily selling groceries, fresh produce, meat, bakery |
|
1 | and dairy products. The term does not include a convenience |
2 | store. |
3 | "Tourism." Any activity which promotes or encourages | <-- |
4 | individuals to travel to a location within this Commonwealth for |
5 | pleasure. |
6 | "Tourism." Any activity that promotes or encourages | <-- |
7 | individuals or a group of individuals to travel to a location |
8 | within this Commonwealth to engage in an activity or service for |
9 | pleasure that is unavailable at home. |
10 | "Virtual machine." A self-contained software operating |
11 | environment that operates within a host operating system server | <-- |
12 | and simulates a hardware device, such as a computer or a server. |
13 | "Working capital." Capital used by a small business for | <-- |
14 | operations, excluding fixed assets and production machinery and |
15 | equipment. |
16 | SUBCHAPTER B |
17 | STRUCTURE AND POWERS |
18 | Sec. |
19 | 1711. Authority. |
20 | 1712. Board. |
21 | 1713. Duties. |
22 | 1714. Powers. |
23 | 1715. Limitation Operation, service and maintenance of a | <-- |
24 | project or property. |
25 | § 1711. Authority. |
26 | (a) Establishment.--There is established an authority to be |
27 | known as the Liberty Financing Authority. The authority shall be |
28 | an instrumentality of the Commonwealth and a body corporate and |
29 | politic, with corporate succession. |
30 | (b) Governance.--The authority shall be governed by the |
|
1 | board. The powers of the authority shall be exercised by the |
2 | board. |
3 | (c) Indebtedness.--The authority may incur indebtedness, |
4 | including through the issuance of bonds, in an amount which | <-- |
5 | shall not exceed the aggregate amount of indebtedness assumed by |
6 | the authority from its predecessors, indebtedness of prior |
7 | programs assumed by the authority and unused bond authorizations |
8 | of its predecessors. Indebtedness in the form of refinancings of |
9 | existing indebtedness of the authority or its predecessors shall |
10 | not be counted against such limitation on the authority's |
11 | indebtedness. The term of indebtedness shall not exceed 20 30 | <-- |
12 | years. Net proceeds from the sale of obligations incurred under |
13 | this chapter shall be allocated for programs under Subchapter E |
14 | (relating to programs) and for the payment of all reasonable |
15 | costs and expenses related to the issuance. |
16 | (d) Expenses.--Expenses of the authority shall be paid from |
17 | assets or income of the authority. Except as provided in this |
18 | chapter or by other law, the Commonwealth shall not be |
19 | responsible for funding the expenses of the authority. |
20 | (e) Fiscal year.--The fiscal year of the authority shall be |
21 | the same as the fiscal year of the Commonwealth. |
22 | (f) Existence and dissolution.-- |
23 | (1) The authority shall exist until terminated by law. |
24 | (2) The authority may be dissolved by law if all |
25 | outstanding liabilities of the authority, including bonds and |
26 | other contractual obligations, have been fully paid, retired, |
27 | satisfied or discharged or provision has been made for |
28 | payment of all outstanding liabilities of the authority, |
29 | including bonds and other contractual obligations. Upon the |
30 | dissolution of the authority, all funds, assets and other |
|
1 | property of the authority shall vest in the Commonwealth. |
2 | (g) Procurement.--The authority shall be considered as an |
3 | executive agency for the purposes of 62 Pa.C.S. Pt. I (relating |
4 | to Commonwealth Procurement Code), except that the authority |
5 | shall have the authority to procure its own services. When |
6 | acting as its own purchasing agency for the procurement of |
7 | services, the authority shall use the procedures provided under |
8 | 62 Pa.C.S. Pt. I. |
9 | (h) Commonwealth Attorneys Act.--The authority shall be |
10 | considered an executive agency for the purposes of the act of |
11 | October 15, 1980 (P.L.950, No.164), known as the Commonwealth |
12 | Attorneys Act. |
13 | (i) Relationship with department.-- |
14 | (1) The department shall provide administrative services |
15 | and staff, including staff legal counsel, to the authority |
16 | and the board. The authority shall reimburse the department |
17 | for the costs of such services and staff. |
18 | (2) The authority may enter into agreements with the |
19 | department setting forth their respective rights and |
20 | obligations in carrying out their respective duties under |
21 | this chapter, as well as rates of reimbursement, as |
22 | applicable, for providing services under this subsection. |
23 | (j) Applicability.--The following acts shall apply to the |
24 | authority and the board: |
25 | (1) The act of July 19, 1957 (P.L.1017, No.451), known |
26 | as the State Adverse Interest Act. |
27 | (2) The act of February 14, 2008 (P.L.6, No.3), known as |
28 | the Right-to-Know Law. |
29 | (3) The provisions of 65 Pa.C.S. Chs. 7 (relating to |
30 | open meetings) and 11 (relating to ethics standards and |
|
1 | financial disclosure). |
2 | § 1712. Board. |
3 | (a) Members.-- |
4 | (1) The authority shall be governed by a board |
5 | consisting of 15 members. |
6 | (2) The following public officials shall serve as |
7 | members of the board: |
8 | (i) The Secretary of Community and Economic |
9 | Development. |
10 | (ii) The Secretary of Agriculture. |
11 | (iii) The Secretary of Banking. |
12 | (iv) The Secretary of the Budget. |
13 | (3) Eleven individuals from the private sector shall |
14 | serve as members of the board. Members appointed under this |
15 | paragraph shall not be members or staff of the General |
16 | Assembly and shall not be otherwise employed by the |
17 | Commonwealth. Three Seven members from the private sector | <-- |
18 | shall be appointed by the Governor and two members one member | <-- |
19 | shall be appointed by each of the following: |
20 | (i) The President pro tempore of the Senate. |
21 | (ii) The Minority Leader of the Senate. |
22 | (iii) The Speaker of the House of Representatives. |
23 | (iv) The Minority Leader of the House of |
24 | Representatives. |
25 | (b) Delegation of authority.--Public officials who are |
26 | members of the board pursuant to subsection (a)(2) may designate |
27 | a member of their staff to serve in their absence. |
28 | (c) Terms.-- |
29 | (1) Public officials shall serve for the duration of |
30 | their tenure in office. |
|
1 | (2) Members appointed under subsection (a)(3) shall |
2 | serve for terms of four years, subject to the pleasure of the |
3 | appointing authority, except that board members appointed |
4 | under subsection (a)(3)(i), (ii), (iii) and (iv) shall serve |
5 | for initial terms of two years. |
6 | (3) Members appointed to fill a vacancy created |
7 | otherwise than by expiration of a term shall be appointed for |
8 | the unexpired term of the preceding member. |
9 | (d) Organization.-- |
10 | (1) The Governor shall appoint one member of the board |
11 | to act as chairperson. |
12 | (2) The members shall select from among themselves such |
13 | other officers of the board as they shall determine. | <-- |
14 | (e) Board action.-- |
15 | (1) The board shall meet at the call of the chairperson. |
16 | (2) Eight members of the board shall constitute a |
17 | quorum. When a quorum is present, a majority of those present |
18 | shall be necessary to take any action on behalf of the |
19 | authority. |
20 | (f) Compensation.--Members of the board shall be entitled to |
21 | no compensation for their services, but shall be entitled to |
22 | reimbursement for all necessary and reasonable expenses incurred |
23 | in connection with the performance of their duties as members of |
24 | the board. |
25 | (g) Fiduciary relationship.--The members of the board and |
26 | the professional personnel of the board shall stand in a |
27 | fiduciary relationship with the Commonwealth and the authority |
28 | as to the moneys in the accounts of the authority and |
29 | investments of the authority. |
30 | (h) Standard of care.--The members of the board, in |
|
1 | performance of their duties under this chapter, shall exercise |
2 | the standard of care required by 20 Pa.C.S. Ch. 73 (relating to |
3 | municipalities investments). |
4 | (i) Liability.--Members of the board shall not be liable |
5 | personally on any obligations of the authority, including bonds |
6 | of the authority. The authority shall provide liability | <-- |
7 | insurance for the members of the board. |
8 | (j) Definition.--As used in this section, the term "member" | <-- |
9 | means an individual who serves on the board under subsection (a) |
10 | as a public official or an individual from the private sector. |
11 | § 1713. Duties. |
12 | (a) General rule.--The authority shall: |
13 | (1) Administer the programs described in Subchapter E |
14 | (relating to programs). |
15 | (2) Fund the programs described in Subchapter E using |
16 | the resources available under this chapter. |
17 | (3) Adopt bylaws. and guidelines for each program listed | <-- |
18 | in Subchapter E as proposed by the department. Guidelines |
19 | shall include applicable policies and procedures, program |
20 | criteria, application requirements and any other necessary |
21 | and relevant information. |
22 | (4) Adopt and publish guidelines for each program listed | <-- |
23 | in Subchapter E as proposed by the department and for the |
24 | certification of economic development organizations. |
25 | Guidelines shall include applicable policies and procedures, |
26 | program criteria, application requirements and any other |
27 | necessary and relevant information. |
28 | (5) Certify on an annual basis those economic |
29 | development organizations that possess the qualifications |
30 | necessary to evaluate and approve applications to the |
|
1 | authority for financial assistance. |
2 | (b) Reports and publications.-- |
3 | (1) Within 90 days of the effective date of this |
4 | chapter, the authority shall submit for publication in the |
5 | Pennsylvania Bulletin and on the Internet website of the |
6 | department notification of the programs to be administered |
7 | under this chapter. The notification shall include the name |
8 | and brief description of each program, the name of a contact |
9 | person and the anticipated time that funding, applications |
10 | and official guidelines will become available. |
11 | (2) The authority shall submit for publication in the |
12 | Pennsylvania Bulletin the program guidelines adopted under |
13 | subsections (c) and (d) and shall maintain the guidelines on |
14 | the department's Internet website. |
15 | (3) The authority shall, each year by the first day of |
16 | March, publish and deliver to the Governor and the General |
17 | Assembly a memorandum which shall outline the authority's |
18 | goals and planned investments for the coming fiscal year. |
19 | (4) The authority shall annually post and maintain on |
20 | the Internet website of the department an annual report, |
21 | which at a minimum shall include: |
22 | (i) A list of all grants, loans, reimbursements or |
23 | rebates approved during the previous fiscal year. |
24 | (ii) The name and business address of each |
25 | recipient, including the name of a contact person for the | <-- |
26 | recipient. |
27 | (iii) The amount and terms of the grant or loan. |
28 | (iv) A brief description of the project for which |
29 | the grant or loan was awarded. The description shall |
30 | include the commitment for the number of jobs created and |
|
1 | retained and the total capital investment for the |
2 | project. |
3 | (c) Audit.-- |
4 | (1) The authority shall have the accounts and books of |
5 | the authority audited annually by an independent certified |
6 | public accounting firm. |
7 | (2) The authority shall, by December 31 of each year, |
8 | file a copy of the audit required by paragraph (1) with the |
9 | Secretary of the Senate, the Chief Clerk of the House of |
10 | Representatives and the Office of the Budget. |
11 | (d) Cooperation.--The authority shall cooperate with the |
12 | Office of Inspector General in the performance of its duties, |
13 | including, but not limited to, the investigation of fraud, |
14 | waste, misconduct or abuse in the programs, operations or |
15 | contracting of the authority. |
16 | § 1714. Powers. |
17 | The authority may: |
18 | (1) Borrow money, issue and assume bonds, obtain lines |
19 | and letters of credit, provide loan guarantees and incur |
20 | debt. |
21 | (2) Sue and be sued, implead and be impleaded, |
22 | interplead, complain and defend in any court. |
23 | (3) Establish accounts necessary or desirable for its |
24 | corporate purposes. |
25 | (4) Transfer funds as necessary and desirable to |
26 | effectuate the purposes of the programs set forth in |
27 | Subchapter E (relating to programs). |
28 | (5) Retain accountants, auditors and financial experts |
29 | to render services and engage the services of other advisors, |
30 | consultants and agents as necessary. |
|
1 | (6) Acquire, accept, purchase, receive, collect, hold, |
2 | convey and invest funds and property, whether tangible or |
3 | intangible, from all sources, directly or by assignment, |
4 | pledge or otherwise. |
5 | (7) Invest money of the authority not required for |
6 | immediate use, including proceeds from the sale of bonds, as |
7 | the board determines, subject to any agreement with |
8 | bondholders stated in the authorizing resolution providing |
9 | for the issuance of bonds. |
10 | (8) Contract and execute all instruments, including |
11 | financing agreements, letter of credit agreements, liquidity |
12 | agreements, guarantees, sureties, mortgages, loans, standby |
13 | loan commitments and contracts of insurance which are |
14 | necessary or appropriate for carrying on the business of the |
15 | authority. |
16 | (9) Impose and collect charges in connection with loan |
17 | commitments and servicing, including reimbursement of costs |
18 | of financing. |
19 | (9.1) Impose interest rate penalties on borrowers who | <-- |
20 | fail to fulfill commitments regarding job creation or |
21 | retention, private investment and site location. |
22 | (10) Pledge the credit of the authority and provide |
23 | security and liquidity to obligees of the authority as the |
24 | authority deems necessary or appropriate. |
25 | (11) Use or pledge an account for a special purpose, |
26 | including debt service reserves and other reserves, as may be |
27 | necessary or desirable to carry out its powers and duties. |
28 | (12) With the advice of a financial management firm |
29 | selected by the board, negotiate and enter into interest rate |
30 | cap agreements, interest rate management agreements, collar |
|
1 | agreements, corridor agreements, ceiling agreements, floor |
2 | agreements, forward agreements, float agreements and other |
3 | similar arrangements which, in the judgment of the authority, |
4 | will assist the authority in managing the interest costs of |
5 | the authority. |
6 | (13) Certify industrial development agencies in | <-- |
7 | accordance with guidelines adopted and published by the |
8 | authority. (Reserved). | <-- |
9 | (13.1) Provide interest revenue-sharing on a quarterly |
10 | basis to the originating economic development organization on |
11 | loans sponsored by the economic development organization to |
12 | offset administrative expenses and the cost of fulfilling |
13 | certification obligations. |
14 | (14) Use moneys, excluding the proceeds of bonds, to pay |
15 | the administrative expenses of the authority and of the |
16 | department incurred under this chapter. |
17 | (15) Employ an executive director. |
18 | (16) Employ legal counsel or and provide a reimbursement | <-- |
19 | agreement for legal services by legal counsel for the |
20 | Department of Community and Economic Development. |
21 | (17) Adopt, use and alter a corporate seal. |
22 | (18) Pay or satisfy obligations of the authority. |
23 | (19) Negotiate modifications or alterations to financing |
24 | agreements, mortgages or security interests. |
25 | (20) Foreclose on a mortgage or security interest in |
26 | default. |
27 | (21) Commence any action necessary to protect or enforce |
28 | any right conferred upon the authority by law, mortgage, |
29 | security agreement, contract or other agreement. |
30 | (22) Bid for or purchase property that was the subject |
|
1 | of a mortgage or security interest at a foreclosure or other |
2 | sale and acquire and take possession of that property. |
3 | (23) Sell, mortgage, pledge, encumber, transfer, convey |
4 | and dispose of any property, whether tangible or intangible. |
5 | (24) Acquire and sell loans, mortgages and security |
6 | interests at public or private sale. |
7 | (25) Provide financial assistance to applicants and |
8 | project users. |
9 | (26) Agree to and comply with conditions attached to |
10 | Federal or Commonwealth assistance not inconsistent with the |
11 | provisions of this chapter. |
12 | (27) Make rules regarding the operation of properties |
13 | and facilities of the authority subject to agreements with |
14 | obligees of the authority. |
15 | (28) Develop, adopt and implement binding policies or |
16 | guidelines assuring that all persons are accorded equal |
17 | opportunity in employment and contracting associated with the |
18 | programs established under Subchapter E. This paragraph |
19 | includes the authority's contractors, subcontractors, |
20 | assignees, lessees, agents, vendors and suppliers. |
21 | (29) Exercise rights provided by law for the benefit or |
22 | protection of the authority or obligees of the authority. |
23 | (30) Procure insurance against any loss in connection |
24 | with its programs, property and other assets. |
25 | (31) Promulgate regulations and adopt guidelines and |
26 | statements of policy containing restrictions as it may deem |
27 | necessary and appropriate to effectuate the public purposes |
28 | of this chapter. |
29 | (32) Enter into agreements with applicants and project |
30 | users providing, among other things, for any of the |
|
1 | following: |
2 | (i) Financial assistance. |
3 | (ii) Loan, rental or purchase price payments or |
4 | other payments, sufficient to amortize the principal, |
5 | interest and premium, if any, of bonds and contractual |
6 | obligations of the authority incurred to provide funds to |
7 | pay the costs of the projects being financed. |
8 | (iii) The applicants or project users to pay or |
9 | cause to be paid all other costs of acquiring, |
10 | constructing, maintaining and operating the projects |
11 | being financed. |
12 | (iv) Conveyance with or without consideration of any |
13 | part or all of a project being financed to the project |
14 | user or applicant on or before payment of all bonds and |
15 | contractual obligations of the authority incurred with |
16 | respect to the project. |
17 | (v) Other matters as are customary or as are deemed |
18 | necessary and appropriate by the authority. |
19 | (33) Undertake any action appropriate or necessary to |
20 | effectuate the purposes of this chapter, or to exercise the |
21 | powers set forth in this section, including any act |
22 | reasonably implied from those powers. |
23 | (34) Transfer funds to the Commonwealth Financing | <-- |
24 | Authority established under Chapter 15 (relating to |
25 | Commonwealth Financing Authority) with the approval of a |
26 | super-majority of the board of the Commonwealth Financing |
27 | Authority. The authority may approve a transfer to the |
28 | Commonwealth Financing Authority by acting under section |
29 | 1712(e) (relating to board). |
30 | § 1715. Limitation. |
|
1 | Except upon foreclosure or default under a loan made under this |
2 | chapter, the authority shall not approve an application or |
3 | finance a project if it would be required to operate, service or |
4 | maintain the project. Before a new policy or a change of policy | <-- |
5 | takes effect, the board shall first approve it by a vote. |
6 | § 1715. Operation, service and maintenance of a project or |
7 | property. |
8 | The authority shall not approve an application or finance a |
9 | project if it would be required to operate, service or maintain |
10 | the project. The authority may operate, service or maintain a |
11 | property in foreclosure or default. |
12 | SUBCHAPTER C |
13 | BONDS |
14 | Sec. |
15 | 1721. Bond issuance. |
16 | 1722. Commonwealth and local taxation. |
17 | 1723. Federal taxation. |
18 | 1724. Validity of bonds, limitation on actions. |
19 | 1725. Provisions of bonds, trust agreements and trust | <-- |
20 | agreements and issuance of bonds. |
21 | 1726. Validity of pledge. |
22 | 1727. Commonwealth pledges. |
23 | 1728. Bonds to be legal investments. |
24 | 1729. Rights and remedies of obligees. |
25 | § 1721. Bond issuance. |
26 | (a) Authorization.--The authority may issue limited |
27 | obligation revenue bonds and other types of limited obligation |
28 | revenue financing. Bonds of the authority shall be authorized by |
29 | a resolution of the board, subject to subsection (c). |
30 | (b) Taxability.--The authority may issue both tax-exempt |
|
1 | bonds and taxable bonds to fund the authority's programs. |
2 | (c) Bond requirements.--Bonds issued by the authority shall: |
3 | (1) Be of a series. |
4 | (2) Bear a date or dates. |
5 | (3) Be in denominations. |
6 | (4) Be signed by, or bear the facsimile signature of the |
7 | officer designated by the board. |
8 | (5) Carry registration, exchangeability and |
9 | interchangeability privileges. |
10 | (6) Be payable in any medium of payment and at any place |
11 | or places. |
12 | (7) Mature on a date or dates not to exceed 30 years |
13 | from the original issue date. |
14 | (8) Be subject to terms of redemption, if any. |
15 | (d) Issuance.--Bonds issued by the authority may: |
16 | (1) Be authenticated by an authenticating agent, fiscal |
17 | agent or trustee. |
18 | (2) Be in any form, either coupon or fully registered |
19 | without coupons, or in certificated or book-entry-only form. |
20 | (3) Bear or accrue interest at any rate or rates, |
21 | whether fixed or variable. |
22 | (4) Be issued and delivered notwithstanding the fact |
23 | that the officer whose signature appears on a coupon may no |
24 | longer be an authenticating officer at the time of actual |
25 | delivery. |
26 | (e) No debt or liability of the Commonwealth.-- |
27 | (1) A bond issued by the authority shall not be a debt |
28 | or liability of the Commonwealth and shall not create any |
29 | indebtedness, liability or obligation on the part of the |
30 | Commonwealth. |
|
1 | (2) A bond shall be payable solely from revenues of the |
2 | authority or accounts pledged or otherwise available for |
3 | their repayment. |
4 | (3) A bond shall contain on its face statements that: |
5 | (i) The authority is obligated to pay the principal |
6 | of or interest on the bond only from revenues, receipts |
7 | or funds pledged or available for its payment as |
8 | authorized in this chapter. |
9 | (ii) Neither the Commonwealth nor any political |
10 | subdivision is obligated to pay the principal or |
11 | interest. |
12 | (iii) Neither the faith and credit nor the taxing |
13 | power of the Commonwealth or any political subdivision is |
14 | pledged to the payment of the principal of or interest on |
15 | the bonds. |
16 | (f) Sale.--Bonds may be sold at a public, invited or private |
17 | sale at a price determined by the authority. |
18 | (g) Interim receipts.--Pending the preparation of the |
19 | definitive bonds, interim receipts may be issued to the |
20 | purchaser or purchasers of the bonds and shall contain the terms |
21 | and conditions established by the authority. |
22 | (h) Negotiable instruments.--Bonds of the authority shall |
23 | have the qualities of negotiable instruments under 13 Pa.C.S. |
24 | (relating to commercial code). |
25 | (i) Use.--The authority may, as it deems necessary and |
26 | desirable, use the proceeds of bonds to: |
27 | (1) make loans, grants, guarantees and rebates; |
28 | (2) purchase loans, mortgages, security interests or |
29 | loan participations; |
30 | (3) pay incidental expenses in connection with activity |
|
1 | under paragraphs (1) and (2), including administrative costs |
2 | of the authority and the department; |
3 | (4) pay expenses of authorizing and issuing the bonds; |
4 | (5) pay principal, redemption or purchase price and |
5 | interest on bonds; or |
6 | (6) fund reserves. |
7 | (j) Refunding.--Subject to the provisions of this chapter, |
8 | terms of bonds and any contracts entered into pursuant to this |
9 | chapter, the authority may refund any outstanding debt of the |
10 | authority whether the debt represents principal or interest, in |
11 | whole or in part, at any time. For the purposes of this |
12 | subsection, the term "refund" means the issuance and sale of |
13 | obligations the proceeds of which are used or are to be used for |
14 | the payment or redemption of outstanding obligations upon or |
15 | prior to maturity. |
16 | § 1722. Commonwealth and local taxation. |
17 | (a) Authority.--Because the authority, as a public |
18 | instrumentality of the Commonwealth, will be performing |
19 | essential governmental functions in effectuating the purposes of |
20 | this chapter, the authority shall not be subject to State or | <-- |
21 | local taxation or assessment upon any property acquired or used |
22 | or permitted to be used by the authority for its purposes. |
23 | (b) Bonds.--Bonds issued by the authority, the transfer and |
24 | the income from the bonds, including any profit made on the sale |
25 | of such bonds, shall be free from State and local taxation |
26 | within this Commonwealth. The exclusion under this subsection |
27 | shall not extend to gift, estate, succession or inheritance |
28 | taxes, or any other taxes not levied or assessed directly on the |
29 | bonds, their transfer, the income from the bonds or the |
30 | realization of profits on their sale. |
|
1 | § 1723. Federal taxation. |
2 | (a) Allocation.--If the bonds issued by the authority for a |
3 | project are tax-exempt bonds for which Federal law requires an |
4 | allocation, the department may issue an allocation upon receipt |
5 | of a written request by the authority. An allocation must be |
6 | issued by the department prior to the approval of the resolution |
7 | authorizing the issuance of the bonds by the authority. |
8 | (b) Approval.--If gubernatorial approval is required by |
9 | Federal or State law, the Governor may approve the issuance of |
10 | bonds upon receipt of written request for approval from the |
11 | authority. The written request must contain all of the |
12 | following, to the extent required by Federal law: |
13 | (1) A statement that the authority has conducted a |
14 | public hearing, with appropriate public notice, concerning |
15 | the purposes for which the bonds are to be issued. |
16 | (2) A description of the project or projects to be |
17 | financed. |
18 | (3) A description of the method of financing the project |
19 | or projects. |
20 | (4) A summary of the comments made and questions posed |
21 | at the public hearing. |
22 | § 1724. Validity of bonds, limitation on actions. |
23 | (a) Presumption.--Bonds reciting in substance that they have |
24 | been issued by the authority to accomplish the public purposes |
25 | of this chapter shall be conclusively deemed in any suit, action |
26 | or proceeding involving the validity or enforceability of the |
27 | bonds or their security to have been issued for the public |
28 | purposes of this chapter. |
29 | (b) Estoppel.--After issuance, bonds shall be conclusively |
30 | presumed to be fully authorized and issued under the laws of |
|
1 | this Commonwealth, and any person shall be estopped from |
2 | questioning their validity, sale, execution or delivery by the |
3 | authority. |
4 | § 1725. Provisions of bonds, trust agreements and trust | <-- |
5 | agreements and issuance of bonds. |
6 | A (a) Provisions.--A resolution authorizing the issuance of | <-- |
7 | bonds or any trust agreement approved in or by a resolution |
8 | authorizing the issuance of bonds may contain provisions which |
9 | do any of the following: |
10 | (1) Secure the bonds. |
11 | (2) Establish a covenant as to any of the following: |
12 | (i) Additional bonds to be issued and terms, |
13 | conditions and limitations on such bonds. |
14 | (ii) Rank or priority of bonds with respect to liens |
15 | or security interests. |
16 | (iii) Limitations on the authority's right to sell, |
17 | pledge or otherwise dispose of bonds or notes of |
18 | governmental units, loan agreements or other property. |
19 | (iv) Custody, application, investment and |
20 | disposition of proceeds of bonds. |
21 | (v) Incurring of other debts or obligations by the |
22 | authority. |
23 | (vi) Payment of principal of or interest on bonds. |
24 | (vii) Sources and methods of payment. |
25 | (viii) Redemption, purchase and tender of bonds by |
26 | the authority or the bondholders and the privilege of |
27 | exchange of the bonds for other bonds. |
28 | (ix) Use, investment and disposition of the money |
29 | held in special funds, accounts or reserves. |
30 | (x) Use of any or all of the authority's real or |
|
1 | personal property. |
2 | (xi) Warrant of title to the authority's real or |
3 | personal property. |
4 | (xii) Pledging or granting a security interest in |
5 | all or any part of the authority's revenues or any part |
6 | of its property to which its right or title exists or |
7 | which may later come into existence. |
8 | (3) Establish a covenant against any of the following: |
9 | (i) Permitting or suffering any lien on all or any |
10 | part of its revenues or property. |
11 | (ii) Extending the time for the payment of bonds or |
12 | interest. |
13 | (4) Provide for any of the following: |
14 | (i) Replacement of lost, stolen, destroyed or |
15 | mutilated bonds. |
16 | (ii) Maintenance of the authority's real and |
17 | personal property. |
18 | (iii) Replacement of the authority's real and |
19 | personal property. |
20 | (iv) Insurance to be carried on the authority's real |
21 | and personal property and the use and disposition of the |
22 | insurance proceeds. |
23 | (v) Rights, liabilities, powers and duties arising |
24 | upon the breach of any covenant, condition or obligation. |
25 | (vi) Letters of credit, bond insurance and other |
26 | facilities for credit enhancement and liquidity. |
27 | (5) Prescribe: |
28 | (i) Procedures, if any, by which the terms of any |
29 | contract with bondholders may be amended or abrogated. |
30 | (ii) The percentage of the principal amount of bonds |
|
1 | the holders of which must consent to the amendment or |
2 | abrogation of any contract. |
3 | (iii) The manner in which the consent under |
4 | subparagraph (ii) may be given. |
5 | (iv) Events of default. |
6 | (v) Terms and conditions upon which any or all of |
7 | the bonds become or may be declared due and payable |
8 | before stated maturity following an event of default. |
9 | (vi) Terms and conditions upon which the declaration |
10 | of default and its consequence may be waived. |
11 | (6) Create or authorize the creation of special funds or |
12 | accounts to be held in trust or otherwise for the benefit of |
13 | bondholders or of reserves for debt service or other |
14 | purposes. |
15 | (7) Vest in a trustee any property, rights, powers and |
16 | duties in trust for the benefit of bondholders. |
17 | (8) Limit the rights, powers and duties of a trustee, |
18 | and the right of bondholders to appoint a trustee. |
19 | (9) Establish the terms and conditions upon which a |
20 | trustee or the bondholders may enforce a covenant or rights |
21 | securing or relating to the bonds. |
22 | (10) Exercise all or any part or combination of the |
23 | powers granted in this chapter. |
24 | (11) Do or refrain from doing any other act and thing |
25 | necessary, convenient or desirable in order to better secure |
26 | the bonds of the authority or, in the absolute discretion of |
27 | the authority, as will tend to make bonds of the authority |
28 | more marketable. This paragraph applies notwithstanding that |
29 | the covenant, act or thing may not be specifically enumerated |
30 | in this chapter as long as the covenant, act or thing is in |
|
1 | accordance with the intent of this chapter. |
2 | (12) Pay the costs or expenses incident to any of the |
3 | foregoing. |
4 | (b) Issuance of bonds.--Bonds may be issued under one or | <-- |
5 | more separate resolutions or trust agreements. A series of bonds |
6 | may be separately secured from another series of bonds under the |
7 | resolutions or trust agreements. |
8 | § 1726. Validity of pledge. |
9 | A pledge of or grant of a security interest in revenues or |
10 | instruments made by the authority shall be valid and binding |
11 | from the time when the pledge is made or, where applicable, when |
12 | the authority enters into a written agreement to request the |
13 | applicable appropriation from the department. The revenues, |
14 | receipts, money, funds or other property or instruments pledged |
15 | and later received by the authority shall immediately be subject |
16 | to the lien of the pledge or security interest without any |
17 | physical delivery of the property pledged or further act. The |
18 | lien of the pledge or security interest shall be valid and |
19 | binding as against all parties having claims of any kind in |
20 | tort, contract or otherwise against the authority irrespective |
21 | of whether the parties have notice of the lien, pledge or |
22 | security interest. No instrument by which a pledge or security |
23 | interest is created, evidenced or noticed need be recorded or |
24 | filed to perfect the pledge or security interest except in the |
25 | records of the authority. |
26 | § 1727. Commonwealth pledges. |
27 | (a) Bondholders.--The Commonwealth pledges to and agrees |
28 | with each obligee of the authority that the Commonwealth will |
29 | not limit or alter the rights and powers vested in the authority |
30 | or otherwise created by this chapter in any manner inconsistent |
|
1 | with the obligations of the authority to its obligees until all |
2 | bonds at any time issued, together with the interest on the |
3 | bonds, are fully paid and discharged. |
4 | (b) Lessees.--The Commonwealth pledges and agrees with any |
5 | person that, as owner of property which is leased or subleased |
6 | to or from the authority, it will not limit or alter the rights |
7 | and powers vested in the authority or otherwise created by this |
8 | chapter in any manner which impairs the obligations of the |
9 | authority until all the obligations of the authority under the |
10 | lease or sublease are fully met and discharged. |
11 | § 1728. Bonds to be legal investments. |
12 | (a) Investments.--Bonds issued pursuant to this chapter |
13 | shall constitute securities in which any person or entity may |
14 | properly and legally invest funds, including capital, deposits |
15 | or other funds in their control or belonging to them. |
16 | (b) Deposits.--Bonds issued by the authority are securities |
17 | which may properly and legally be deposited with and received by |
18 | a government agency for any purpose for which the deposit of |
19 | bonds or other obligations of the Commonwealth are authorized by |
20 | law. |
21 | § 1729. Rights and remedies of obligees. |
22 | The rights and remedies conferred upon or granted to obligees |
23 | of the authority pursuant to this chapter shall be in addition |
24 | to and not in limitation of rights and remedies lawfully granted |
25 | to obligees of the authority by the resolution providing for the |
26 | issuance of bonds or by any trust agreement or other agreement |
27 | under which the bonds may be issued or secured. |
28 | SUBCHAPTER D |
29 | ACCOUNTS |
30 | Sec. |
|
1 | 1731. Establishment of accounts. |
2 | 1732. Deposits. |
3 | 1733. Use. |
4 | 1734. Account restrictions. |
5 | § 1731. Establishment of accounts. |
6 | There are established the following accounts: |
7 | (1) The Small Business First Account. |
8 | (2) The Community Economic Development Account. |
9 | (3) The Export Financing Account. |
10 | (4) The Pennsylvania Industrial Development Account. |
11 | (5) The Machinery and Equipment Loan Account. |
12 | (6) The Disadvantaged Business Development Account. |
13 | (7) The First Industries Account. | <-- |
14 | (8) The Second Stage Loan Guarantee Account. |
15 | § 1732. Deposits. |
16 | Loan repayments, recaptured funds and bond proceeds from the |
17 | programs described in Subchapter E (relating to programs), as |
18 | well as appropriations, including, without limitation, those |
19 | appropriations made prior to the effective date of this act for |
20 | the same programs or similar programs to those described in |
21 | Subchapter E (relating to programs) and any other available | <-- |
22 | funds which are or may become available, not pledged to be |
23 | deposited or used elsewhere, shall be deposited in the |
24 | respective program accounts. Separate subaccounts may be | <-- |
25 | established in each program account for purposes of pledging |
26 | funds in the subaccounts to secure specific bonds and other |
27 | obligations of the authority. |
28 | § 1733. Use. |
29 | Funds deposited in each of the program accounts shall be made |
30 | available for additional planning grants, project grants, loans, |
|
1 | rebates and other financing tools as provided by the respective |
2 | programs. |
3 | § 1734. Account restrictions. |
4 | (a) Pennsylvania Industrial Development Account.-- |
5 | (1) The Pennsylvania Industrial Development Account, |
6 | established in section 1731 (relating to establishment of |
7 | accounts), shall be a revolving fund, whereby all |
8 | appropriations and payments made into the account, including |
9 | repayment of loans made to industrial development agencies or | <-- |
10 | funds from mortgages and any other agreements made and |
11 | entered into by the authority under the program, shall be |
12 | applied and reapplied to the purposes of the Pennsylvania |
13 | Industrial Development Program. |
14 | (2) If at any time the authority determines that funds |
15 | held in the Pennsylvania Industrial Development Account |
16 | exceed the amount required to carry out the purposes of the |
17 | program, the authority shall take such action as may be |
18 | required to transfer the excess funds to the General Fund of |
19 | the State Treasury, subject to the provisions of section |
20 | 1771.1 (relating to transfer from Pennsylvania Industrial |
21 | Development Authority to Liberty Financing Authority). |
22 | (b) Export Financing Account.--Funds in the Export Financing |
23 | Account must be continuously secured by a pledge of direct |
24 | obligations of the United States or of the Commonwealth having |
25 | an aggregate market value, exclusive of accrued interest, at |
26 | least equal to the balance on deposit in the account. The |
27 | securities shall be deposited with the authority to be held by a |
28 | trustee or agent satisfactory to the authority. Bank and trust |
29 | companies are authorized to give security under this subsection. |
30 | SUBCHAPTER E |
|
1 | PROGRAMS |
2 | Sec. |
3 | 1750. Programs generally. |
4 | 1751. Small Business First Program. |
5 | 1752. Community Economic Development Program. |
6 | 1753. Export Financing Program. |
7 | 1754. Pennsylvania Industrial Development Program. |
8 | 1755. Machinery and Equipment Loan Program. |
9 | 1756. Disadvantaged Business Development Program. |
10 | 1757. First Industries Program. | <-- |
11 | 1758. Second Stage Loan Guarantee Program. |
12 | § 1750. Programs generally. |
13 | (a) Application process.--Applications for financial |
14 | assistance under this chapter must be prepared with the | <-- |
15 | assistance of a certified economic development organization that |
16 | shall approve the application before it is submitted to the |
17 | authority and shall comply with subsection (b) and with any |
18 | additional requirement of the applicable program or programs. |
19 | Applications shall be in the form required by the authority and |
20 | shall bear the applicant's name and address together with a |
21 | description of the type and amount of financial assistance |
22 | requested. Upon review of an application, the authority shall |
23 | notify the applicant of its decision or request additional |
24 | information or certifications prior to making its decision. |
25 | (b) Application requirements.--Applications shall include |
26 | the following information, where applicable: |
27 | (1) A description of the applicant's business or, if the |
28 | applicant is not the borrower, the borrower's business, |
29 | including: |
30 | (i) The type of business conducted. |
|
1 | (ii) The location and age of the business. |
2 | (iii) A list of all offices of the applicant located |
3 | in this Commonwealth. |
4 | (iv) The names and addresses of the principals. |
5 | (v) The number of current employees and an estimate |
6 | of future employment. |
7 | (2) A description of the project, including: |
8 | (i) The location. |
9 | (ii) The total estimated project cost, prepared by |
10 | an engineer or other qualified professional, where |
11 | appropriate, and the identification of all sources of |
12 | capital for the project. |
13 | (iii) A legal description of all real property held |
14 | or to be acquired for the establishment of the project. |
15 | (iv) A general description and statement of value of |
16 | any real or personal property of the applicant and, if |
17 | applicable, the buyer or tenant of the project, to be |
18 | applied to the establishment of the project. |
19 | (3) A statement that the project is consistent with any |
20 | existing comprehensive county plan where the project is |
21 | located. |
22 | (4) A statement that notification of the project has | <-- |
23 | been sent to the governing bodies of the county or counties |
24 | and of the municipality or municipalities in which the |
25 | project is located (Reserved). | <-- |
26 | (5) A firm commitment from the intended project user to |
27 | use the project upon completion. |
28 | (6) Proof that the applicant has secured any required | <-- |
29 | planning and permit approvals for the project (Reserved). | <-- |
30 | (7) A brief description of the anticipated economic |
|
1 | impact to this Commonwealth and the host municipality as a |
2 | result of the project. |
3 | (8) Any such plans and other documents as may be | <-- |
4 | required to show the type, structure and general character of |
5 | the project. |
6 | (9) Any information required by the program or programs |
7 | under which financial assistance may be provided. |
8 | (10) (Reserved). |
9 | (11) Any other information required by the authority. |
10 | (c) Review and approval.-- |
11 | (1) In reviewing applications, the authority shall |
12 | consider the following, where applicable: |
13 | (i) Whether the value of the proposed collateral and |
14 | the financial resources offered by the applicant are |
15 | sufficient to repay the loan. |
16 | (ii) Whether the project will enable future |
17 | employment opportunities in or have a net positive |
18 | economic impact on the surrounding community. |
19 | (iii) Whether the statement of the estimated cost of |
20 | the project is reasonable. |
21 | (iv) Whether the sources of financial commitments |
22 | for funds in excess of the amount requested under this |
23 | chapter are reliable. |
24 | (v) Whether the applicant has complied with any | <-- |
25 | terms required by the applicable program or programs |
26 | listed under the corresponding sections of this chapter. |
27 | (vi) Whether the applicant has a history of |
28 | investment in Pennsylvania-related companies. |
29 | (vii) Whether the applicant has demonstrated strong |
30 | relationships with organizations in this Commonwealth |
|
1 | which foster economic development. |
2 | (viii) Whether the applicant has a strong |
3 | performance record. |
4 | (ix) Whether the applicant has demonstrated an |
5 | ability to meet and satisfy debt service, if applicable, |
6 | as it becomes due and payable. |
7 | (x) Any other information deemed relevant by the |
8 | authority. |
9 | (2) Subject to any applicable limitations under this |
10 | chapter, the amount, duration, interest rate, security |
11 | required and any other terms of the loan shall be set at the |
12 | discretion of the authority based upon its determination of |
13 | the potential financial risk to the Commonwealth. |
14 | (3) No loan, loan guarantee or grant shall be approved | <-- |
15 | if the proceeds would be used to: |
16 | (i) refinance any portion of the total cost of a |
17 | capital development project, pollution prevention |
18 | infrastructure or other existing loans or debt; |
19 | (ii) finance a project located outside the |
20 | geographic boundaries of this Commonwealth; |
21 | (iii) relocate a business to another part of this |
22 | Commonwealth, unless approved in advance by the authority |
23 | which shall consider the negative economic impact on the |
24 | community that the business is leaving; or |
25 | (iv) provide funds, directly or indirectly, for |
26 | payment distribution or as a loan to owners, partners or |
27 | shareholders of a small business, except as ordinary |
28 | compensation for services rendered. |
29 | (4) (i) The terms of all agreements for financial |
30 | assistance awarded under this chapter shall include any |
|
1 | material terms, requirements or other conditions provided |
2 | for agreements entered into under this chapter. The |
3 | authority may impose other terms and conditions if it |
4 | determines they are in the best interests of this |
5 | Commonwealth, including a provision requiring collateral |
6 | for any penalty which may be imposed. |
7 | (ii) Upon approving an application for a loan, the |
8 | authority shall draw an advance equal to the principal |
9 | amount of the loan from the appropriate account or |
10 | accounts; and prior to providing loan funds to the |
11 | applicant, the authority shall require the applicant to |
12 | execute a note and to enter into a loan agreement and any |
13 | other agreement as the authority shall require. |
14 | (d) Reporting and inspection.--An applicant for or a |
15 | recipient of a loan, loan guarantee or grant made under this |
16 | chapter shall, upon request: |
17 | (1) Permit the authority to inspect its premises, books |
18 | and records. |
19 | (2) Provide updated information to the authority if |
20 | conditions change to the extent that the information |
21 | originally given becomes inaccurate or misleading. |
22 | (3) Provide the authority with any periodic financial |
23 | reports and audits that the authority may require. |
24 | (e) Penalties.-- | <-- |
25 | (1) If a grant provides for improvements on a site of a |
26 | private facility that has or will be receiving additional |
27 | economic development assistance or job creation tax credits |
28 | from the Commonwealth, the contract shall include a provision |
29 | that ensures that if the facility is closed or the facility |
30 | or business is sold within five years after the approval of |
|
1 | the application, the Commonwealth shall request reimbursement |
2 | of the grant and shall place a lien for that amount on the |
3 | real property of that facility to remain on the real property |
4 | until the Commonwealth receives reimbursement. |
5 | (2) The authority or department, as applicable, may, by |
6 | foreclosure, take title to a capital development project, |
7 | purchase first mortgages and make payments on first mortgages |
8 | on a capital development or lease a capital development if |
9 | necessary to protect a loan made under this chapter. The |
10 | authority or department may sell, transfer, convey and assign |
11 | the first mortgages and shall deposit any money derived from |
12 | the sale of any first mortgages in the applicable program |
13 | account. |
14 | § 1751. Small Business First Program. |
15 | (a) General rule.--The Small Business First Program shall |
16 | provide low-interest loans and lines of credit to small |
17 | businesses for capital development projects that will stimulate |
18 | the expansion and assist in the viability of small businesses, |
19 | thereby creating new jobs and retaining existing jobs in this |
20 | Commonwealth. |
21 | (b) Application.--In addition to the requirements listed in |
22 | section 1750(b) (relating to programs generally), the |
23 | application shall include the following: |
24 | (1) A description of the capital development project, |
25 | including the following: |
26 | (i) The number of employment opportunities to be |
27 | created or preserved by the proposed capital development |
28 | project. |
29 | (ii) If the applicant is an agricultural producer, a |
30 | demonstration that there is a substantial likelihood that |
|
1 | the project will enhance the agricultural operation. |
2 | (2) A financial commitment from a responsible source for |
3 | any cost of the project in excess of the amount requested. |
4 | (3) A demonstration of the ability of the applicant to |
5 | meet and satisfy the debt service as it becomes due and |
6 | payable. |
7 | (4) The existence and sufficiency of collateral for the |
8 | loan. |
9 | (c) Conditions and restrictions.--A loan made under this |
10 | section may: |
11 | (1) Finance the development, construction, renovation or |
12 | acquisition of land, buildings, machinery or equipment or may |
13 | be used for working capital. |
14 | (2) Not exceed 50% of the total capital development |
15 | project costs. For the purposes of this paragraph, capital |
16 | development project costs incurred during the 12-month period |
17 | prior to the date of submission of the application to the |
18 | authority shall be considered part of the total capital |
19 | development project costs. |
20 | (d) Loan terms.--The following terms shall apply: |
21 | (1) A loan for real property shall have a repayment |
22 | period of up to 15 years. |
23 | (2) A loan for machinery and equipment shall have a |
24 | repayment period of up to ten years. |
25 | (3) A loan or line of credit for working capital shall |
26 | have a repayment period of up to three years. |
27 | (4) If, in a capital development project, two or more |
28 | uses are planned, the loan terms may be combined. |
29 | (5) The interest rate shall be determined by the |
30 | authority. |
|
1 | (6) The authority shall determine the job retention or |
2 | job creation requirements of each project financed in whole |
3 | or in part through a loan made under this section. |
4 | (7) All loans shall be secured by lien positions on |
5 | collateral at the highest level of priority, as determined by |
6 | the authority. |
7 | (e) Penalty for noncompliance.--In the event that a loan |
8 | recipient fails to create or preserve the number of employment |
9 | opportunities specified in the approved application, the |
10 | authority shall may impose a penalty equal to an increase of up | <-- |
11 | to 5% above the existing loan interest rate for the remainder of |
12 | the loan, unless it determines that the failure is due to |
13 | circumstances outside the control of the loan recipient. |
14 | § 1752. Community Economic Development Program. |
15 | (a) General rule.--The Community Economic Development |
16 | Program shall provide loans for small businesses located in |
17 | distressed communities which are involved in the business-to- |
18 | public service, mercantile, commercial or point-of-sale retail |
19 | sectors in order to enhance the economic well-being of the |
20 | community by employing residents of the community and by |
21 | providing products or services to that community. |
22 | (b) Conditions and restrictions.--The following shall apply: |
23 | (1) A loan for land, buildings, machinery, equipment or |
24 | working capital may not exceed 50% of the total capital |
25 | development project costs. For the purposes of this |
26 | paragraph, capital development project costs incurred during |
27 | the 12-month period prior to the date of submission of the |
28 | application to the authority shall be considered part of the |
29 | total capital development project costs. |
30 | (2) Each capital development project shall meet the job |
|
1 | retention or job creation requirements established by the |
2 | authority. |
3 | (3) The maximum loan amount available under this program |
4 | will be set by the authority. |
5 | (4) No loans shall be approved if the proceeds of the |
6 | loan would be used to provide funds for speculation in real |
7 | or personal property, whether tangible or intangible. |
8 | (c) Loan terms.--The following terms shall apply: |
9 | (1) A loan for real property shall have a repayment |
10 | period of up to 15 years. |
11 | (2) A loan for machinery and equipment shall have a |
12 | repayment period of up to ten years. |
13 | (3) A loan or line of credit for working capital shall |
14 | have a repayment period of up to three years. |
15 | (4) All loans shall be secured by lien positions on |
16 | collateral at the highest level of priority, as determined by |
17 | the authority. |
18 | (d) Application.--In addition to the requirements listed in |
19 | section 1750(b) (relating to programs generally), the |
20 | application shall include the following: |
21 | (1) A financial commitment from a responsible source for |
22 | the cost of the capital development project in excess of the |
23 | amount requested. |
24 | (2) A demonstration that the capital development project |
25 | will have a direct impact on the community in which the |
26 | capital development project is or will be located, on |
27 | residents of that community or on the local and regional |
28 | economy. The authority shall establish criteria that will |
29 | assist in making this demonstration. |
30 | (3) A projection of the number of employment |
|
1 | opportunities to be created or preserved by the proposed |
2 | capital development project. |
3 | (e) Penalty for noncompliance.--In the event that a loan |
4 | recipient fails to create or preserve the number of employment |
5 | opportunities specified in the approved application, the |
6 | authority shall may impose a penalty equal to an increase of up | <-- |
7 | to 5% above the existing rate for the remainder of the loan, |
8 | unless it determines that the failure is due to circumstances |
9 | outside the control of the loan recipient. |
10 | § 1753. Export Financing Program. |
11 | (a) General rule.--The Export Financing Program shall |
12 | provide loans and lines of credit to export businesses for |
13 | working capital and accounts receivable financing, in order to |
14 | increase the level of foreign exports and the number of |
15 | Pennsylvania companies exporting goods and services. |
16 | (b) Application.--In addition to the requirements listed in |
17 | section 1750(b) (relating to programs generally), the |
18 | application shall include the following: |
19 | (1) The number of employment opportunities to be created |
20 | or preserved by the proposed capital development project. |
21 | (2) A financial commitment from a responsible source for |
22 | any cost of the capital development project in excess of the |
23 | amount requested. |
24 | (3) A statement that the loan, if approved, would not |
25 | supplant funding from private sector sources on commercially |
26 | reasonable terms. |
27 | (4) A demonstration that the applicant will be able to |
28 | meet and satisfy the debt service as it becomes due and |
29 | payable. |
30 | (5) The existence and sufficiency of collateral for the |
|
1 | loan. |
2 | (c) Conditions and restrictions.-- |
3 | (1) The maximum loan amount, repayment period and |
4 | interest rate available under this program will be set by the |
5 | authority. |
6 | (2) The authority may, in its discretion, require any of |
7 | the following: |
8 | (i) That the applicant be eligible for an export |
9 | credit insurance policy for small businesses offered by |
10 | the Ex-Im Bank. |
11 | (ii) That the export credit sales contract be |
12 | insured by an export credit insurance policy offered by |
13 | the Ex-Im Bank. |
14 | (iii) That the loan be guaranteed by the working |
15 | capital guaranty program offered by the Ex-Im Bank. |
16 | (3) No loan shall be approved if the proceeds of the |
17 | loan would be used to provide funds for speculation in real |
18 | or personal property, whether tangible or intangible. |
19 | (4) All loans shall be secured by lien positions on |
20 | collateral at the highest level of priority, as may be |
21 | determined by the authority. |
22 | (d) Penalty for noncompliance.--In the event that a loan |
23 | recipient fails to create or preserve the number of employment |
24 | opportunities specified in the approved application, the |
25 | authority shall may impose a penalty equal to an increase of up | <-- |
26 | to 5% above the existing loan interest rate for the remainder of |
27 | the loan, unless it determines that the failure is due to |
28 | circumstances outside the control of the loan recipient. |
29 | § 1754. Pennsylvania Industrial Development Program. |
30 | (a) General rule.--The Pennsylvania Industrial Development |
|
1 | Program shall provide loans to industrial development agencies | <-- |
2 | for industrial development projects, industrial parks and |
3 | multiple-tenancy building projects sponsored by industrial | <-- |
4 | development agencies in order to increase employment levels and |
5 | the overall economic health of this Commonwealth. |
6 | (b) Loans for industrial development projects.--The |
7 | authority may contract to loan to an industrial development | <-- |
8 | agency an amount not to exceed 50% of the cost of establishing |
9 | the industrial development project, subject, however, to the |
10 | following conditions: |
11 | (1) Prior to the making of any loan under this |
12 | paragraph, the authority shall determine that: |
13 | (i) The project will be owned by, sold or leased to | <-- |
14 | an owner, buyer or tenant which borrower is responsible | <-- |
15 | to assume all obligations imposed by the authority in |
16 | connection with the project, financial or otherwise, and |
17 | to undertake the operation of the project. |
18 | (ii) There will be sufficient income from any sales | <-- |
19 | or lease agreement between the industrial development |
20 | agency and a buyer or tenant of the project to ensure the |
21 | repayment of the loan made pursuant to this paragraph |
22 | (Reserved). | <-- |
23 | (iii) The industrial development agency or the | <-- |
24 | owner, buyer or tenant borrower has obtained from other | <-- |
25 | independent and responsible sources a firm commitment for |
26 | any funds which, in addition to the loan made pursuant to |
27 | this paragraph and any other property or assets held by |
28 | the industrial development agency, owner, buyer or tenant | <-- |
29 | borrower, shall be necessary for the completion and | <-- |
30 | operation of the project. |
|
1 | (2) The industrial development agency or the owner, | <-- |
2 | buyer or tenant of the project must provide at least 10% of |
3 | the cost of establishing the project through its own equity |
4 | or through financing secured by a subordinate lien on the |
5 | project (Reserved). | <-- |
6 | (3) The authority shall determine the interest rate and |
7 | repayment period of any loan made under this section. |
8 | (4) A loan made under this section shall be evidenced by |
9 | note of the industrial development agency borrower, and | <-- |
10 | secured by a mortgage on the project for which such loan was |
11 | made, second subordinate only to the mortgage securing the | <-- |
12 | first lien obligation issued to secure the commitment of |
13 | funds provided to pay the cost of the project from the |
14 | aforesaid independent and responsible sources, and used in |
15 | the financing of the project. |
16 | (5) The authority may require such additional security |
17 | it may deem necessary. |
18 | (c) Loans for industrial parks.--The authority may contract |
19 | to loan to an industrial development agency an amount not to | <-- |
20 | exceed 60% of the cost of establishing an industrial park |
21 | project, subject to the following conditions: |
22 | (1) The industrial development agency must provide at | <-- |
23 | least 10% of the cost of establishing the industrial park |
24 | project through its own equity or financing secured by a |
25 | subordinate lien on the project (Reserved). | <-- |
26 | (2) The authority shall determine the interest rate and |
27 | repayment period of any loan made under this subsection. |
28 | (3) A loan made under this section shall be evidenced by |
29 | note of the industrial development agency borrower and | <-- |
30 | secured by a first mortgage on the industrial park or by |
|
1 | participation in a first mortgage. If, however, a Federal |
2 | agency is participating in the financing of the industrial |
3 | park, the authority may take as security for its loan a |
4 | mortgage on the industrial park which is second only to the |
5 | mortgage given to the Federal agency. |
6 | (4) If a loan made under this section is secured by |
7 | participation in a first mortgage on the industrial park, a |
8 | portion of the loan, not to exceed 10% of the cost of the |
9 | project, may be secured by a second mortgage on the |
10 | industrial park which is second only to the participating |
11 | first mortgage. |
12 | (d) Loans for multiple-tenancy building projects.--The |
13 | authority may contract to loan to an industrial development | <-- |
14 | agency an amount not to exceed 40% 50% of the cost of | <-- |
15 | establishing the multiple-tenancy building project, subject, |
16 | however, to the following conditions: |
17 | (1) The industrial development agency must provide at | <-- |
18 | least 10% of the cost of establishing the project through its |
19 | own equity or financing secured by a subordinate lien on the |
20 | project (Reserved). | <-- |
21 | (2) The authority shall determine the interest rate and |
22 | repayment period of any loan made under this section. |
23 | (3) A loan made under this section shall be evidenced by |
24 | note of the industrial development agency borrower and | <-- |
25 | secured by a first mortgage or participation in a first | <-- |
26 | mortgage on the multiple-tenancy building project. |
27 | (4) The authority may contract to loan an amount not to |
28 | exceed 40% 50% of the cost of the project if the loan is | <-- |
29 | secured by a first mortgage or participation in a first |
30 | mortgage on the project; otherwise, the authority may |
|
1 | contract to loan an amount not to exceed 30% 40% of the cost | <-- |
2 | of the project. |
3 | (5) If a loan made under this section is secured by a |
4 | participation in a first mortgage on the project, the |
5 | authority may permit a portion of its loan, not to exceed 10% |
6 | of the cost of the project, to be secured by a second |
7 | mortgage on the project which is second only to the |
8 | participating first mortgage. |
9 | (e) Application.--In addition to the requirements listed in |
10 | section 1750(b) (relating to programs generally), the |
11 | application shall include the following: |
12 | (1) A general description of the type, classes and |
13 | number of employees employed or to be employed in the |
14 | operation of the project. |
15 | (2) The cost or estimate of the cost of establishing the |
16 | project. As used in this section, "cost" shall include |
17 | financing charges, including interest incurred prior to and |
18 | during construction, but shall not include the cost of any |
19 | machinery, equipment or fixtures necessary for the project or |
20 | the installation or maintenance of any such machinery, |
21 | equipment or fixtures. |
22 | (3) Financial statements of the industrial development | <-- |
23 | agency, the proposed buyer or tenant of the project, as |
24 | applicable, parent companies and proposed guarantors, if any, |
25 | borrower, proposed guarantors and any other party whose | <-- |
26 | credit is significant to the approval of the loan for the |
27 | latest three years of operations, prepared by an independent |
28 | certified public accountant. |
29 | (4) Evidence of the arrangement made by the industrial | <-- |
30 | development agency and the buyer or tenant of the project, as |
|
1 | applicable, borrower for the financing of all costs of the | <-- |
2 | project over and above the participation of the authority. |
3 | (5) Evidence that the establishment of the project will |
4 | not cause the removal of an industrial enterprise, |
5 | manufacturing enterprise, research and development |
6 | enterprise, agricultural producer or agricultural processor |
7 | from one area of the Commonwealth to another area of the |
8 | Commonwealth, as determined by the authority. |
9 | (f) Employment projection audits.--The authority shall |
10 | implement a procedure to determine whether the employment |
11 | projections set out in the loan application are achieved. |
12 | § 1755. Machinery and Equipment Loan Program. |
13 | (a) General rule.--The Machinery and Equipment Loan Program |
14 | shall provide loans to businesses involved in industrial |
15 | processes, manufacturing, mining, production agriculture, |
16 | information technology or biotechnology for the purchase, |
17 | installation or upgrade of equipment and machinery, including |
18 | computer hardware and software. |
19 | (b) Application.--In addition to the requirements listed in |
20 | section 1750(b) (relating to programs generally), the |
21 | application shall include the following: |
22 | (1) A demonstration that the applicant is able to meet |
23 | and satisfy all debt service as it becomes due and payable. |
24 | (2) Evidence of available and sufficient collateral, |
25 | including satisfactory lien positions on real and personal |
26 | property. |
27 | (3) Sufficient evidence that funds shall be used only to |
28 | acquire and install new equipment and machinery or upgrade |
29 | existing equipment and machinery, including the acquisition, |
30 | application and utilization of computer hardware and |
|
1 | software. |
2 | (4) The number of net employment opportunities to be |
3 | created by the proposed project unless the business is |
4 | involved in production agriculture. |
5 | (5) Evidence that the loan project will increase the |
6 | business's competitiveness within its respective industry. |
7 | (c) Loan terms and limitations.--The following shall apply: |
8 | (1) No loan shall exceed $5,000,000 or 50% of the cost | <-- |
9 | of the project, whichever is less. | <-- |
10 | (2) Loan terms shall not exceed ten years in duration. |
11 | (3) Proceeds of loans made under this section may not be |
12 | used for speculation in any kind of property, real or |
13 | personal, tangible or intangible. |
14 | (4) Loans shall be made only for projects that |
15 | demonstrate a significant likelihood of resulting in job |
16 | creation or retention, as established by the authority. This |
17 | paragraph does not apply to loans made to business |
18 | enterprises involved in production agriculture. |
19 | (d) Security.--All loans shall be secured by no less than a |
20 | second lien position on the equipment purchased and other |
21 | sufficient collateral as determined by the authority. |
22 | (e) Penalty for noncompliance.--In the event that a loan |
23 | recipient fails to create or preserve the number of employment |
24 | opportunities specified in the approved application, the |
25 | authority shall may impose a penalty equal to an increase of up | <-- |
26 | to 5% above the existing rate for the remainder of the loan, |
27 | unless it determines that the failure is due to circumstances |
28 | outside the control of the loan recipient. |
29 | § 1756. Disadvantaged Business Development Program. |
30 | (a) General rule.--The Disadvantaged Business Development |
|
1 | Program shall provide financial assistance to businesses owned |
2 | by socially and economically disadvantaged persons. |
3 | (b) Application.--In addition to the requirements listed in |
4 | section 1750(b) (relating to programs generally), the |
5 | application shall include the following: |
6 | (1) A statement that the applicant is a United States |
7 | citizen, resident of this Commonwealth and member of a group |
8 | or groups which have suffered disadvantages arising from |
9 | chronic racial, ethnic or economic circumstances. |
10 | (2) An explanation as to how the applicant's ability to |
11 | compete in the free enterprise system has been impaired due |
12 | to diminished capital and credit opportunities, as compared |
13 | to others in the same or a similar line of business, and who | <-- |
14 | are not socially and economically disadvantaged. |
15 | (c) Loan terms and conditions.--The authority shall have the |
16 | power to lend money to and to guarantee, endorse or act as |
17 | surety on the bonds, notes, contracts or other obligations of, |
18 | or otherwise financially assist a business owned by a person who |
19 | meets the criteria in subsection (a), and to establish and |
20 | regulate the terms, security and conditions with respect to any |
21 | such loans or financial assistance and the charges for interest |
22 | and service connected therewith. |
23 | § 1757. First Industries Program. | <-- |
24 | (a) General purpose.--The First Industries Program shall |
25 | provide financial assistance for projects related to tourism and |
26 | agriculture located within this Commonwealth. |
27 | (b) Loans.--The First Industries Program shall provide loans |
28 | to businesses involved in tourism and agriculture that would |
29 | otherwise satisfy the requirements for a loan under section 1751 |
30 | (relating to Small Business First Program), 1752 (relating to |
|
1 | Community Economic Development Program) or 1755 (relating to |
2 | Machinery and Equipment Loan Fund Program). |
3 | (c) Loan guarantees.--An applicant may request a guarantee |
4 | for a loan to be made by a commercial lending institution or |
5 | community development financial institution to assist with the |
6 | financing of a project related to tourism or agriculture. |
7 | (d) Application.--In addition to the requirements listed in |
8 | section 1750(b) (relating to programs generally), the |
9 | application shall include the following: |
10 | (1) A description of the proposed project financing, |
11 | including terms, conditions and the collateral or security |
12 | required for the loan for which the guarantee is being |
13 | requested. |
14 | (2) A copy of the borrower's last two years of financial |
15 | statements prepared or reported on by an independent |
16 | certified public accountant. |
17 | (e) Terms and limitations.-- |
18 | (1) A guarantee made under this section may not exceed |
19 | 50% of the outstanding principal amount of the loan or |
20 | $2,500,000 at any point in time, whichever is less. |
21 | (2) No less than $500,000 of private funds must be |
22 | invested in the project. |
23 | (3) In addition to any other terms and conditions |
24 | required by the authority, the guarantee agreement shall |
25 | provide for the following: |
26 | (i) The procedure for the submission by the |
27 | commercial lending institution or community development |
28 | financial institution of a claim for payment. This |
29 | procedure shall require that the commercial lending |
30 | institution or community development financial |
|
1 | institution demonstrate that it has exhausted all |
2 | available remedies against the borrower, other guarantors |
3 | and collateral before seeking payment under the |
4 | agreement. |
5 | (ii) A requirement that a percentage of any moneys |
6 | recovered subsequent to the payment of a claim by the |
7 | authority be remitted to the authority. |
8 | (iii) Periodic reporting requirements by the |
9 | commercial lending institution or community development |
10 | financial institution regarding itself and the loans that |
11 | have been awarded guarantees under this section. |
12 | § 1758. Second Stage Loan Guarantee Program. |
13 | (a) General purpose.--The Second Stage Loan Guarantee |
14 | Program shall provide loan guarantees to commercial lending |
15 | institutions that make loans to life sciences, advanced |
16 | technology or manufacturing businesses located in this |
17 | Commonwealth. |
18 | (b) Application for enrollment.--A commercial lending |
19 | institution may apply for enrollment in the program authorized |
20 | by this section. The application shall be in the form required |
21 | by the authority and, in addition to the requirements listed in |
22 | section 1750(b) (relating to programs generally), shall include |
23 | the following: |
24 | (1) The name and address of the commercial lending |
25 | institution and the name and title of the individual who will |
26 | serve as the point of contact for the commercial lending |
27 | institution. |
28 | (2) A statement defining the service area of the |
29 | commercial lending institution. |
30 | (3) A statement describing the commercial lending |
|
1 | activities engaged in by the commercial lending institution |
2 | and how the institution intends to expand those activities as |
3 | a result of its participation in the program authorized by |
4 | this section. |
5 | (c) Enrollment approval.--Upon approval of an application |
6 | for enrollment, the authority shall execute a master guarantee |
7 | agreement in favor of the commercial lending institution. In |
8 | addition to any other terms and conditions required by the |
9 | authority, the master guarantee agreement shall provide for the |
10 | following: |
11 | (1) The procedure for the submission of a claim for |
12 | payment by the commercial lending institution. The procedure |
13 | shall require that the commercial lending institution |
14 | demonstrate that it has exhausted all available remedies |
15 | against the borrower, other guarantors and collateral for the |
16 | loan before seeking payment under the agreement. |
17 | (2) A requirement that a percentage of any moneys |
18 | recovered by the commercial lending institution subsequent to |
19 | any payment made under the master guarantee agreement by the |
20 | authority be remitted to the authority. |
21 | (3) Periodic reporting requirements by the commercial |
22 | lending institution regarding itself and regarding the loans |
23 | for which guarantee certificates have been issued under this |
24 | section. |
25 | (d) Application for guarantee.--A commercial lending |
26 | institution enrolled in the program authorized by this section |
27 | may submit an application to the authority for the guarantee of |
28 | a proposed loan. The application shall be in the form required |
29 | by the authority and, in addition to the requirements listed in |
30 | section 1750(b), shall include the following: |
|
1 | (1) A demonstration that the use of loan proceeds by the |
2 | borrower will result in jobs being created or retained within |
3 | this Commonwealth, and an estimate as to the number of |
4 | projected new or retained employees as a result of the loan. |
5 | (2) A statement that the borrower's business is located |
6 | within the commercial lending institution's service area and |
7 | within this Commonwealth. |
8 | (3) A copy of the borrower's last two years of financial |
9 | statements prepared or reported on by an independent |
10 | certified public accountant. |
11 | (4) A statement describing the purpose of the loan, the |
12 | requested amount of the loan, a copy of the commercial |
13 | lending institution's commitment letter and applicable credit |
14 | underwriting that supports the repayment of the loan, as well |
15 | as the collateral and other guarantees offered by the |
16 | borrower to support the loan. |
17 | (5) Certification that the borrower's business has been |
18 | in existence for at least two years at the time of |
19 | application. |
20 | (6) Demonstration that the borrower is financially |
21 | responsible and has the ability to repay the loan. |
22 | (e) Limitations.-- |
23 | (1) The guarantee may not exceed 50% of the outstanding |
24 | principal amount of the loan, and shall terminate at the end |
25 | of seven years. |
26 | (2) At no time may a guarantee exceed $1,000,000 for any |
27 | one loan. |
28 | SUBCHAPTER F |
29 | MISCELLANEOUS PROVISIONS |
30 | Sec. |
|
1 | 1771. Definitions. |
2 | 1771.1 Transfer from Pennsylvania Industrial Development |
3 | Authority to Liberty Financing Authority. |
4 | 1772. (Reserved) Transfer from Commonwealth Financing Authority | <-- |
5 | to Liberty Financing Authority for First Industries |
6 | Program and Second Stage Program. |
7 | 1773. Transfer from Pennsylvania Minority Business Development |
8 | Authority to Liberty Financing Authority. |
9 | 1774. Successorship and transfer of assets and liabilities. |
10 | § 1771. Definitions. |
11 | The following words and phrases when used in this subchapter |
12 | shall have the meanings given to them in this section unless the |
13 | context clearly indicates otherwise: |
14 | "Account." The Pennsylvania Industrial Development Account. |
15 | The term shall include any similar account established by a |
16 | successor to the Liberty Financing Authority that assumes the |
17 | obligations under the Pennsylvania Industrial Development |
18 | Authority bond indenture. |
19 | "Debt." Notes, instruments and other evidences of |
20 | indebtedness or obligations which were issued prior to the |
21 | effective date of this section for the same programs or similar |
22 | programs to those described under Subchapter E (relating to |
23 | programs) and under the following: |
24 | (1) The act of May 17, 1956 (1955 P.L.1609, No.537), |
25 | known as the Pennsylvania Industrial Development Authority |
26 | Act. |
27 | (2) The act of July 22, 1974 (P.L.598, No.206), known as |
28 | the Pennsylvania Minority Business Development Authority Act. |
29 | (3) 12 Pa.C.S. Chs. 23 (relating to small business |
30 | first) and 29 (relating to machinery and equipment loans). |
|
1 | "Debt instrument." Any trust instrument or indenture or |
2 | other financial instrument pursuant to which debt was issued, |
3 | incurred or secured. |
4 | "Program." The Pennsylvania Industrial Development Program. |
5 | The term shall include any similar program established by a |
6 | successor to the Liberty Financing Authority that assumes the |
7 | obligations under the Pennsylvania Industrial Development |
8 | Authority bond indenture. |
9 | "Prior programs." Except for programs transferred under |
10 | sections 1771.1 (relating to transfer from Pennsylvania |
11 | Industrial Development Authority to Liberty Financing Authority) |
12 | and 1773 (relating to transfer from Pennsylvania Minority |
13 | Business Development Authority to Liberty Financing Authority), |
14 | the same programs or similar programs to those described under |
15 | Subchapter E (relating to programs) and created under the |
16 | following acts which are repealed, in whole or in part, pursuant |
17 | to this chapter: |
18 | (1) The act of May 17, 1956 (1955 P.L.1609, No.537), |
19 | known as the Pennsylvania Industrial Development Authority |
20 | Act. |
21 | (2) The act of July 22, 1974 (P.L.598, No.206), known as |
22 | the Pennsylvania Minority Business Development Authority Act. |
23 | (3) 12 Pa.C.S. Chs. 23 (relating to small business |
24 | first) and 29 (relating to machinery and equipment loans). |
25 | (4) Sections 1552 (relating to First Industries Program) | <-- |
26 | and 1553 (relating to Second Stage Loan Program). |
27 | § 1771.1. Transfer from Pennsylvania Industrial Development |
28 | Authority to Liberty Financing Authority. |
29 | (a) (Reserved). |
30 | (b) Designation of Liberty Financing Authority as successor |
|
1 | to Pennsylvania Industrial Development Authority.--The Liberty |
2 | Financing Authority, as a public instrumentality of the |
3 | Commonwealth, shall be and is designated as successor to |
4 | Pennsylvania Industrial Development Authority. The separate |
5 | existence of the Pennsylvania Industrial Development Authority |
6 | shall cease. |
7 | (c) Transfer of assets and liabilities of Pennsylvania |
8 | Industrial Development Authority.--The following shall occur: |
9 | (1) The following shall be taken and deemed to be |
10 | transferred to and vested in the Liberty Financing Authority, |
11 | subject to any pledge in favor of the holders of bonds: |
12 | (i) All of the real, personal and mixed property and |
13 | all interests in the property of the Pennsylvania |
14 | Industrial Development Authority, including loans to |
15 | industrial development agencies and property acquired as |
16 | a result of foreclosures or in lieu of foreclosures of |
17 | mortgages securing the loans. |
18 | (ii) Any debts or amount due to the Pennsylvania |
19 | Industrial Development Authority. |
20 | (iii) The Pennsylvania Industrial Development |
21 | Authority's right, title and interest in and to revenues |
22 | pledged to secure bonds, the interests of the |
23 | Pennsylvania Industrial Development Authority under trust |
24 | instruments securing its bonds, including the right to |
25 | issue obligations pursuant to and secured by the |
26 | instruments, sinking funds on deposit and all funds |
27 | deposited under trust instruments, leaseholds and rights |
28 | and deposits under the trust instruments. |
29 | (iv) Rights under interest rate exchange agreements |
30 | and other financial instruments. |
|
1 | (v) Appropriations. |
2 | (vi) All other rights and assets of the Pennsylvania |
3 | Industrial Development Authority of any nature. |
4 | (2) (i) The Liberty Financing Authority shall succeed |
5 | to, assume and become liable for all liabilities and |
6 | obligations of the Pennsylvania Industrial Development |
7 | Authority, including the bonds and the Pennsylvania |
8 | Industrial Development Authority bond indenture, |
9 | obligations under interest rate exchange agreements and |
10 | other financial instruments, contracts for purchase of |
11 | goods or services and other liabilities of any nature. |
12 | (ii) The liabilities and obligations under subparagraph |
13 | (i) shall be subject to the same limitations as were |
14 | applicable to the Pennsylvania Industrial Development |
15 | Authority prior to the transfer of assets and liabilities, |
16 | including limitations as to payment source, pledges, |
17 | assignments, liens, charges, terms and conditions. |
18 | (iii) The transfer of assets and liabilities to the |
19 | Liberty Financing Authority as successor are assumed by the |
20 | Liberty Financing Authority and shall not impair the rights |
21 | or the security of holders of bonds or other creditors, |
22 | persons dealing with Pennsylvania Industrial Development |
23 | Authority, liens upon the property of Pennsylvania Industrial |
24 | Development Authority or persons holding claims against |
25 | Pennsylvania Industrial Development Authority. |
26 | (iv) Any claim existing or action or proceeding pending |
27 | by or against the Pennsylvania Industrial Development |
28 | Authority shall be prosecuted to judgment as if the transfer |
29 | had not taken place or the Liberty Financing Authority may be |
30 | proceeded against or substituted in its place. |
|
1 | (d) Rights and powers.-- |
2 | (1) Nothing under this chapter shall alter or limit the |
3 | rights and powers vested in the Liberty Financing Authority |
4 | as successor to the Pennsylvania Industrial Development |
5 | Authority or otherwise created under the act of May 17, 1956 |
6 | (1955 P.L.1609, No.537), known as the Pennsylvania Industrial |
7 | Development Authority Act, in any manner inconsistent with |
8 | the obligations of the Pennsylvania Industrial Development |
9 | Authority and, after the effective date of this section, the |
10 | Liberty Financing Authority, to obligees of the Pennsylvania |
11 | Industrial Development Authority until all bonds issued by |
12 | the Pennsylvania Industrial Development Authority, together |
13 | with the interest on the bonds, are fully paid and |
14 | discharged. |
15 | (2) Nothing under this chapter shall authorize personal |
16 | recourse for any claim based on bonds or trust instruments |
17 | securing the bonds or trust instruments, against any member, |
18 | officer or employee of the Pennsylvania Industrial |
19 | Development Authority, either directly or through the |
20 | Pennsylvania Industrial Development Authority or the Liberty |
21 | Financing Authority under any constitutional provision, |
22 | statute or rule of law or by the enforcement of any |
23 | assessment or penalty or otherwise. |
24 | (e) Pennsylvania Industrial Development Account and |
25 | Program.-- |
26 | (1) The provisions of this chapter relating to the |
27 | account and the program shall apply to the assets and |
28 | revenues of the Pennsylvania Industrial Development Authority |
29 | transferring to the Liberty Financing Authority as successor |
30 | in addition to the assets and revenues arising from the |
|
1 | continuing program subsequent to the transfer. |
2 | (2) The pledge made by the trust instruments securing |
3 | the Pennsylvania Industrial Development Authority bonds shall |
4 | apply to revenues of the Liberty Financing Authority from the |
5 | program and to assets held in the account. No withdrawals |
6 | from the account may be made except in compliance with the |
7 | trust instruments securing the Pennsylvania Industrial |
8 | Development Authority bonds. |
9 | (f) Definition.--As used in this section, the term "bond" |
10 | means any bond, note or other financial obligation of the |
11 | Pennsylvania Industrial Development Authority, including |
12 | interest rate exchange agreements or other financial instruments |
13 | related to bonds. |
14 | § 1772. (Reserved). Transfer from Commonwealth Financing | <-- |
15 | Authority to the Liberty Financing Authority for the |
16 | First Industries Program and Second Stage Loan |
17 | Program. |
18 | On the effective date of this chapter, the trust accounts |
19 | established by the Commonwealth Financing Authority under |
20 | sections 1541 (relating to trust accounts) and 1542(b) (relating |
21 | to revolving loan program accounts) for the First Industries |
22 | Program and the Second Stage Loan Program shall be transferred |
23 | to and vested in the authority without further act or deed. |
24 | § 1773. Transfer from Pennsylvania Minority Business |
25 | Development Authority to Liberty Financing Authority. |
26 | (a) (Reserved). |
27 | (b) Designation of Liberty Financing Authority as successor |
28 | to the Pennsylvania Minority Business Development Authority.-- |
29 | The Liberty Financing Authority, as a public instrumentality of |
30 | the Commonwealth, shall be and is designated as successor to the |
|
1 | Pennsylvania Minority Business Development Authority. The |
2 | separate existence of the Pennsylvania Minority Business |
3 | Development Authority shall cease. |
4 | (c) Transfer of assets and liabilities of the Pennsylvania |
5 | Minority Business Development Authority.--The following shall |
6 | occur: |
7 | (1) The following shall be taken and deemed to be |
8 | transferred to and vested in the Liberty Financing Authority, |
9 | subject to any pledge in favor of the holders of bonds: |
10 | (i) All of the real, personal and mixed property and |
11 | all interests in the property of the Pennsylvania |
12 | Minority Business Development Authority, including loans |
13 | and other debts owing to the Pennsylvania Minority |
14 | Business Development Authority and amounts due to the |
15 | Pennsylvania Minority Business Development Authority |
16 | under the loans and debts. |
17 | (ii) The right, title and interest of the |
18 | Pennsylvania Minority Business Development Authority |
19 | under bond indentures, including all revenues pledged as |
20 | security for the right, title and interest and the right |
21 | to issue obligations pursuant to and secured by the bond |
22 | indentures, sinking funds on deposit and all funds |
23 | deposited under bond indentures, leaseholds and rights |
24 | and deposits under bond indentures. |
25 | (iii) Appropriations. |
26 | (iv) All other rights and assets of the Pennsylvania |
27 | Minority Business Development Authority. |
28 | (2) (i) The Liberty Financing Authority shall succeed |
29 | to, assume and become liable for all liabilities and |
30 | obligations of the Pennsylvania Minority Business |
|
1 | Development Authority, including the bonds, bond |
2 | indentures, contracts for purchase of goods or services |
3 | and other liabilities. |
4 | (ii) The liabilities and obligations under |
5 | subparagraph (i) shall be subject to the same limitations |
6 | as were applicable to the Pennsylvania Minority Business |
7 | Development Authority prior to the transfer of assets and |
8 | liabilities, including limitations as to payment source, |
9 | pledges, assignments, liens, charges, terms and |
10 | conditions. |
11 | (iii) The transfer of assets and liabilities to the |
12 | Liberty Financing Authority as successor are assumed by |
13 | the Liberty Financing Authority and shall not impair the |
14 | rights or the security of holders of bonds or other |
15 | creditors of the Pennsylvania Minority Business |
16 | Development Authority, persons dealing with the |
17 | Pennsylvania Minority Business Development Authority, |
18 | liens upon the property of the Pennsylvania Minority |
19 | Business Development Authority or persons holding claims |
20 | against the Pennsylvania Minority Business Development |
21 | Authority. |
22 | (iv) Any claim existing or action or proceeding |
23 | pending by or against the Pennsylvania Minority Business |
24 | Development Authority shall be prosecuted to judgment as |
25 | if the transfer had not taken place or the Liberty |
26 | Financing Authority may be proceeded against or |
27 | substituted in its place. |
28 | (d) Rights and powers.-- |
29 | (1) Nothing under this chapter shall alter or limit the |
30 | rights and powers vested in the Liberty Financing Authority |
|
1 | as successor to the Pennsylvania Minority Business |
2 | Development Authority or otherwise created by the act of July |
3 | 22, 1974 (P.L.598, No.206), known as the Pennsylvania |
4 | Minority Business Development Authority Act, and, after the |
5 | effective date of this section, the Liberty Financing |
6 | Authority, to obligees of the Pennsylvania Minority Business |
7 | Development Authority until all bonds issued by the |
8 | Pennsylvania Minority Business Development Authority, |
9 | together with the interest on the bonds, are fully paid and |
10 | discharged. |
11 | (2) Nothing under this chapter shall authorize personal |
12 | recourse for any claim based on any obligation of the |
13 | Pennsylvania Minority Business Development Authority, |
14 | including its bonds or bond indentures, against any member, |
15 | officer or employee of the Pennsylvania Minority Business |
16 | Development Authority either directly or through the |
17 | Pennsylvania Minority Business Development Authority or the |
18 | Liberty Financing Authority under any constitutional |
19 | provision, statute or rule of law or by the enforcement of |
20 | any assessment or penalty or otherwise. |
21 | (e) Definition.--As used in this section, the term "bond" |
22 | means bonds, notes and other evidences of indebtedness or |
23 | obligations which the Pennsylvania Minority Business Development |
24 | Authority issued under the act of July 22, 1974 (P.L.598, |
25 | No.206), known as the Pennsylvania Minority Business Development |
26 | Authority Act. |
27 | § 1774. Successorship and transfer of assets and liabilities. |
28 | (a) (Reserved). |
29 | (b) Transfer of assets and liabilities of prior programs.-- |
30 | The following shall occur: |
|
1 | (1) The following shall be taken and deemed to be |
2 | transferred to and vested in the Liberty Financing Authority, |
3 | subject to any pledge in favor of the holders of debt: |
4 | (i) All of the real, personal and mixed property and |
5 | all interests in the property of the prior programs, |
6 | including loans and other debts owing to the prior |
7 | programs and amounts due to the prior programs under the |
8 | loans and other debts. |
9 | (ii) The right, title and interest of the prior |
10 | programs under debt instruments, including all revenues |
11 | pledged as security for the right, title and interest and |
12 | the right to issue obligations pursuant to and secured by |
13 | the debt instruments, sinking funds on deposit and all |
14 | funds deposited under debt instruments, leaseholds and |
15 | rights and deposits under the debt instruments. |
16 | (iii) Appropriations made with respect to the prior |
17 | programs. |
18 | (iv) All other rights and assets of the prior |
19 | programs. |
20 | (2) (i) The Liberty Financing Authority shall succeed |
21 | to, assume and become liable for all liabilities and |
22 | obligations of the prior programs, including the debt, |
23 | debt instruments, contracts for purchase of goods or |
24 | services, and other liabilities. |
25 | (ii) The liabilities and obligations under |
26 | subparagraph (i) shall be subject to the same limitations |
27 | as were applicable to the prior programs prior to the |
28 | transfer of assets and liabilities, including limitations |
29 | as to payment source, pledges, assignments, liens, |
30 | charges, terms and conditions. |
|
1 | (iii) The transfer of assets and liabilities to the |
2 | Liberty Financing Authority as successor shall not impair |
3 | the rights or the security of holders of debt or other |
4 | creditors of the prior programs, persons dealing with the |
5 | prior programs, liens upon the property of the prior |
6 | programs or persons holding claims against the prior |
7 | programs, all of which are assumed by the Liberty |
8 | Financing Authority. |
9 | (iv) Any claim existing or action or proceeding |
10 | pending by or against the prior programs shall be |
11 | prosecuted to judgment as if the transfer had not taken |
12 | place or the Liberty Financing Authority may be proceeded |
13 | against or substituted in its place. |
14 | (c) Rights and powers.-- |
15 | (1) Nothing under this chapter shall alter or limit the |
16 | rights and powers vested in the Liberty Financing Authority |
17 | as successor to the prior programs or otherwise created by |
18 | the acts under which the prior programs were initiated in any |
19 | manner inconsistent with the obligations of the prior |
20 | programs and, after the effective date of this section, the |
21 | Liberty Financing Authority, to obligees of the prior |
22 | programs until all debt at any time issued by the prior |
23 | programs, together with the interest on the debt, are fully |
24 | paid and discharged. |
25 | (2) Nothing under this chapter shall authorize personal |
26 | recourse for any claim based on any obligation of the prior |
27 | programs, including without limitation its debt or debt | <-- |
28 | instruments, against any member, officer or employee of the |
29 | prior programs whether directly or through the prior programs |
30 | or the Liberty Financing Authority under any constitutional |
|
1 | provision, statute or rule of law or by the enforcement of |
2 | any assessment or penalty or otherwise. |
3 | Section 4 6. Any money that has been allocated or | <-- |
4 | appropriated and has been expended prior to the effective date |
5 | of this section for the same programs or similar programs to |
6 | those described under 64 Pa.C.S. Ch. 17 Subch. E shall be |
7 | deducted from the corresponding allocation or appropriation |
8 | under 64 Pa.C.S. Ch. 17. |
9 | Section 5 7. Repeals are as follows: | <-- |
10 | (1) The General Assembly declares that the repeal under |
11 | paragraph (2) is necessary to effectuate the addition of the |
12 | following provisions of 64 Pa.C.S.: |
13 | (i) Ch. 17 Subch. C. |
14 | (ii) Section 1731(4). |
15 | (iii) Section 1734(a). |
16 | (iv) Section 1754. |
17 | (v) Section 1771.1. |
18 | (2) The act of May 17, 1956 (1955 P.L.1609, No.537), |
19 | known as the Pennsylvania Industrial Development Authority |
20 | Act, is repealed. |
21 | (3) The General Assembly declares that the repeal under |
22 | paragraph (4) is necessary to effectuate the addition of the |
23 | following provisions of 64 Pa.C.S.: |
24 | (i) Ch. 17 Subch C. |
25 | (ii) Section 1731(6). |
26 | (iii) Section 1756. |
27 | (iv) Section 1773. |
28 | (4) The act of July 22, 1974 (P.L.598, No.206), known as |
29 | the Pennsylvania Minority Business Development Authority Act, |
30 | is repealed. |
|
1 | Section 6 8. This act continues repealed provisions of the | <-- |
2 | Pennsylvania Consolidated Statutes as follows: |
3 | (1) The addition of 64 Pa.C.S. §§ 1731(1) and 1751 is a |
4 | continuation of 12 Pa.C.S. Ch. 23. Except as otherwise |
5 | provided in 64 Pa.C.S. § 1731(1) or 1751, all activities |
6 | initiated under 12 Pa.C.S. Ch. 23 shall continue and remain |
7 | in full force and effect and may be completed under 64 |
8 | Pa.C.S. §§ 1731(1) and 1751. Orders, regulations, rules and |
9 | decisions which were made under the 12 Pa.C.S. Ch. 23 and |
10 | which are in effect on the effective date of section 2 1 {12 | <-- |
11 | Pa.C.S. Ch. 23} of this act shall remain in full force and |
12 | effect until revoked, vacated or modified under 64 Pa.C.S. § |
13 | 1731(1) or 1751. Contracts, obligations and collective |
14 | bargaining agreements entered into under 12 Pa.C.S. Ch. 23 |
15 | are not affected nor impaired by the repeal of 12 Pa.C.S. Ch. |
16 | 23. |
17 | (2) The addition of 64 Pa.C.S. §§ 1731(5) and 1755 is a |
18 | continuation of 12 Pa.C.S. Ch. 29. Except as otherwise |
19 | provided in 64 Pa.C.S. § 1731(5) or 1755, all activities |
20 | initiated under 12 Pa.C.S. Ch. 29 shall continue and remain |
21 | in full force and effect and may be completed under 64 |
22 | Pa.C.S. §§ 1731(5) and 1755. Orders, regulations, rules and |
23 | decisions which were made under the 12 Pa.C.S. Ch. 29 and |
24 | which are in effect on the effective date of section 3 1 {12 | <-- |
25 | Pa.C.S. Ch. 29} of this act shall remain in full force and |
26 | effect until revoked, vacated or modified under 64 Pa.C.S. § |
27 | 1731(5) or 1755. Contracts, obligations and collective |
28 | bargaining agreements entered into under 12 Pa.C.S. Ch. 29 |
29 | are not affected nor impaired by the repeal of 12 Pa.C.S. Ch. |
30 | 29. |
|
1 | (3) The addition of 64 Pa.C.S. §§ 1731(7), 1757 and 1772 | <-- |
2 | is a continuation of 64 Pa.C.S. §§ 1542(b) and 1552. Except |
3 | as otherwise provided in 64 Pa.C.S. § 1731(7), 1757 or 1772, |
4 | all activities initiated under 64 Pa.C.S. §§ 1542(b) and 1552 |
5 | shall continue and remain in full force and effect and may be |
6 | completed under 64 Pa.C.S. §§ 1731(7), 1757 and 1772. Orders, |
7 | regulations, rules and decisions which were made under 64 |
8 | Pa.C.S. §§ 1542(b) and 1552 and which are in effect on the |
9 | effective date of sections 2 and 3 {64 Pa.C.S. §§ 1542(b) and |
10 | 1552} of this act shall remain in full force and effect until |
11 | revoked, vacated or modified under 64 Pa.C.S. § 1731(7), 1757 |
12 | or 1772. Contracts, obligations and collective bargaining |
13 | agreements entered into under 64 Pa.C.S. §§ 1542(b) and 1552 |
14 | are not affected nor impaired by the repeal of 64 Pa.C.S. §§ |
15 | 1542(b) and 1552. |
16 | (4) The addition of 64 Pa.C.S. §§ 1731(8), 1758 and 1772 |
17 | is a continuation of 64 Pa.C.S. § 1553. Except as otherwise |
18 | provided in 64 Pa.C.S. § 1731(8), 1758 or 1772, all |
19 | activities initiated under 64 Pa.C.S. § 1553 shall continue |
20 | and remain in full force and effect and may be completed |
21 | under 64 Pa.C.S. §§ 1731(8), 1758 and 1772. Orders, |
22 | regulations, rules and decisions which were made under 64 |
23 | Pa.C.S. § 1553 and which are in effect on the effective date |
24 | of section 4 {64 Pa.C.S. § 1553} of this act shall remain in |
25 | full force and effect until revoked, vacated or modified |
26 | under 64 Pa.C.S. § 1731(7), 1757 or 1772. Contracts, |
27 | obligations and collective bargaining agreements entered into |
28 | under 64 Pa.C.S. § 1553 are not affected nor impaired by the |
29 | repeal of 64 Pa.C.S. § 1553. |
30 | Section 7 9. The addition of 64 Pa.C.S. Ch. 17 Subch. C is a | <-- |
|
1 | continuation of the act of May 17, 1956 (1955 P.L.1609, No.537), |
2 | known as the Pennsylvania Industrial Development Authority Act |
3 | and the act of July 22, 1974 (P.L.598, No.206), known as the |
4 | Pennsylvania Minority Business Development Authority Act. The |
5 | following apply: |
6 | (1) Except as otherwise provided in 64 Pa.C.S. Ch. 17 |
7 | Subch. C, all activities related to bonds initiated under the |
8 | Pennsylvania Industrial Development Authority Act or the |
9 | Pennsylvania Minority Business Development Authority Act |
10 | shall continue and remain in full force and effect and may be |
11 | completed under 64 Pa.C.S. Ch. 17 Subch. C. Orders, |
12 | regulations, rules and decisions which were related to bonds, |
13 | which were made under the Pennsylvania Industrial Development |
14 | Authority Act or the Pennsylvania Minority Business |
15 | Development Authority Act and which are in effect on the |
16 | effective date of section 6 8 of this act shall remain in | <-- |
17 | full force and effect until revoked, vacated or modified |
18 | under 64 Pa.C.S. Ch. 17 Subch. C. Contracts, obligations and |
19 | collective bargaining agreements which are related to bonds |
20 | and which were entered into under the the Pennsylvania |
21 | Industrial Development Authority Act or the Pennsylvania |
22 | Minority Business Development Authority Act are not affected |
23 | nor impaired by the repeal of the the Pennsylvania Industrial |
24 | Development Authority Act or the Pennsylvania Minority |
25 | Business Development Authority Act. |
26 | (2) Any difference in language between 64 Pa.C.S. Ch. 17 |
27 | Subch C and the Pennsylvania Industrial Development Authority |
28 | Act or the Pennsylvania Minority Business Development |
29 | Authority Act is intended only to conform to the style of the |
30 | Pennsylvania Consolidated Statutes and is not intended to |
|
1 | change or affect the legislative intent, judicial |
2 | construction or administration and implementation of the |
3 | Pennsylvania Industrial Development Authority Act or the |
4 | Pennsylvania Minority Business Development Authority Act. |
5 | Section 8 10. The addition of 64 Pa.C.S. §§ 1731(4), | <-- |
6 | 1734(a), 1754 and 1771.1 is a continuation of the act of May 17, |
7 | 1956 (1955 P.L.1609, No.537), known as the Pennsylvania |
8 | Industrial Development Authority Act. The following apply: |
9 | (1) Except as otherwise provided in 64 Pa.C.S. § |
10 | 1731(4), 1734(a), 1754 or 1771.1, all activities initiated |
11 | under the Pennsylvania Industrial Development Authority Act |
12 | shall continue and remain in full force and effect and may be |
13 | completed under 64 Pa.C.S. § 1731(4), 1734(a), 1754 or |
14 | 1771.1. Orders, regulations, rules and decisions which were |
15 | made under the Pennsylvania Industrial Development Authority |
16 | Act and which are in effect on the effective date of section |
17 | 6(2) 8(2) of this act shall remain in full force and effect | <-- |
18 | until revoked, vacated or modified under 64 Pa.C.S. § |
19 | 1731(4), 1734(a), 1754 or 1771.1. Contracts, obligations and |
20 | collective bargaining agreements entered into under the |
21 | Pennsylvania Industrial Development Authority Act are not |
22 | affected nor impaired by the repeal of the Pennsylvania |
23 | Industrial Development Authority Act. |
24 | (2) Any difference in language between 64 Pa.C.S. § |
25 | 1731(4), 1734(a), 1754 or 1771.1 and the Pennsylvania |
26 | Industrial Development Authority Act is intended only to |
27 | conform to the style of the Pennsylvania Consolidated |
28 | Statutes and is not intended to change or affect the |
29 | legislative intent, judicial construction or administration |
30 | and implementation of the Pennsylvania Industrial Development |
|
1 | Authority Act. |
2 | Section 9 11. The addition of 64 Pa.C.S. §§ 1731(6), 1756 | <-- |
3 | and 1773 is a continuation of the act of July 22, 1974 (P.L.598, |
4 | No.206), known as the Pennsylvania Minority Business Development |
5 | Authority Act. The following apply: |
6 | (1) Except as otherwise provided in 64 Pa.C.S. § |
7 | 1731(6), 1756 or 1773, all activities initiated under the |
8 | Pennsylvania Minority Business Development Authority Act |
9 | shall continue and remain in full force and effect and may be |
10 | completed under 64 Pa.C.S. §§ 1731(6), 1756 and 1773. Orders, |
11 | regulations, rules and decisions which were made under the |
12 | the Pennsylvania Minority Business Development Authority Act |
13 | and which are in effect on the effective date of section 6(4) | <-- |
14 | 8(4) of this act shall remain in full force and effect until | <-- |
15 | revoked, vacated or modified under 64 Pa.C.S. §§ 1731(6), |
16 | 1756 and 1773. Contracts, obligations and collective |
17 | bargaining agreements entered into under the Pennsylvania |
18 | Minority Business Development Authority Act are not affected |
19 | nor impaired by the repeal of the Pennsylvania Minority |
20 | Business Development Authority Act. |
21 | (2) Any difference in language between 64 Pa.C.S. §§ |
22 | 1731(6), 1756 and 1773 and the Pennsylvania Minority Business |
23 | Development Authority Act is intended only to conform to the |
24 | style of the Pennsylvania Consolidated Statutes and is not |
25 | intended to change or affect the legislative intent, judicial |
26 | construction or administration and implementation of the |
27 | Pennsylvania Minority Business Development Authority Act. |
28 | Section 10 12. This act shall take effect in 60 days. | <-- |
|