6-09.14 Partnership in Assisting Community Expansion
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<![CDATA[CHAPTER 6-09.14PARTNERSHIP IN ASSISTING COMMUNITY EXPANSION6-09.14-01. (Effective through July 31, 2011) Definitions. In this chapter, unless thecontext or subject matter otherwise requires:1."Business" means a corporation, limited liability company, partnership, individual, or<br>association providing child care or involved in manufacturing, processing,<br>value-added processing, and targeted industries as defined by the Bank of North<br>Dakota.2."Community" means the city or county in which an eligible business is located, or a<br>local development corporation, community organization, or any other group whose<br>interest is in the economic growth of the area.3."Partnership in assisting community expansion fund" or "fund" means a fund<br>established to buy down the interest rate on loans to businesses under this chapter.(Effective after July 31, 2011) Definitions. In this chapter, unless the context or subjectmatter otherwise requires:1."Business" means a corporation, limited liability company, partnership, individual, or<br>association involved in manufacturing, processing, value-added processing, and<br>targeted industries as defined by the Bank of North Dakota.2."Community" means the city or county in which an eligible business is located, or a<br>local development corporation, community organization, or any other group whose<br>interest is in the economic growth of the area.3."Partnership in assisting community expansion fund" or "fund" means a fund<br>established to buy down the interest rate on loans to businesses under this chapter.6-09.14-02.Fund - Continuing appropriation - Administration.A partnership inassisting community expansion fund is hereby established from a transfer of earnings from the<br>Bank of North Dakota. This is a revolving fund, and all moneys transferred into the fund, interest<br>on fund moneys, and payments to the fund are hereby appropriated for the purposes of this<br>chapter.This fund is not subject to section 54-44.1-11.The Bank of North Dakota shalladminister the fund.6-09.14-03. Fund - Purpose - Interest rate buydown. Moneys in the partnership inassisting community expansion fund must be used for the purpose of buying down the interest<br>rate on loans made by a lead financial institution in participation with the Bank of North Dakota.<br>The Bank of North Dakota's participation may not exceed eighty percent nor be less than fifty<br>percent of the total loans. If the loan is approved by the lenders and there is evidence of the<br>community's commitment and ability to fund its portion of the buydown, the fund's participation in<br>the buydown must automatically be approved.6-09.14-04. Fund moneys - Eligible uses.1.The fund moneys may be used to participate in an interest rate buydown on a loan<br>to a new or expanding business for the following eligible uses:a.Purchase of real property and equipment.b.Expansion of facilities.c.Working capital.Page No. 1d.Inventory.The loan funds cannot be used to refinance any existing debt or for the relocation of<br>the business within North Dakota.2.The community shall determine the amount of the interest rate buydown and apply<br>to the Bank of North Dakota for participation from the partnership in assisting<br>community expansion fund. The funds for the community's portion of the buydown<br>may come from a local development corporation, contributions, community funds,<br>future dedicated tax programs, or any other community source.3.The fund participation portion in the buydown must be determined by the Bank of<br>North Dakota based on economic conditions in the city or county in which the<br>business is located.4.The maximum amount from the fund in the interest rate buydown may not exceed<br>three hundred thousand dollars per loan. The fund participation must be limited to<br>the amount required to buy down the interest to five hundred basis points below the<br>national prime interest rate.5.The Bank of North Dakota shall adopt rules to implement this chapter.Page No. 2Document Outlinechapter 6-09.14 partnership in assisting community expansion]]>