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Rule: 8.97.1706 Prev     Up     Next    
Rule Title: APPLICATION AND FINANCING FEES, COSTS AND OTHER CHARGES
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Department: COMMERCE, DEPARTMENT OF
Chapter: BOARD OF INVESTMENTS
Subchapter: Economic Development Bond Program
 
Latest version of the adopted rule presented in Administrative Rules of Montana (ARM):

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8.97.1706    APPLICATION AND FINANCING FEES, COSTS AND OTHER CHARGES

(1) Applicants for participation in either the MOBP or the SABP program shall submit a non-refundable application fee of $500 at the time the application is submitted.

(2) An application for consideration under the MOBP or the SABP program shall require the submission of:

(a) the names, addresses and titles of the applicants;

(b) a history of the project and organization;

(c) a resume of the applicant's principals;

(d) financial statement of the applicant;

(e) other information including, but not limited to, feasibility studies, appraisals, market studies, personal financial statements, and tax returns deemed necessary by the board to evaluate the applicant's request.

(3) An applicant for consideration under the MOBP program shall also submit a written acknowledgment from a financial institution of its intention to commit to the financing of the project as fully described in ARM 8.97.1802.

(4) At the time revenue bonds are issued by the board under the MOBP or the SABP program to provide financing for a project, the borrower shall pay a financing fee to the board based on the principal amount of the revenue bonds issued on behalf of that borrower. The financing fee is to reimburse the board for a proportionate share of its administrative costs associated with the making and servicing of its financial undertakings and its general operative and administrative expenses.

(a) The financing fee for the MOBP program will be as follows:

(i) one percent (1%) of the first $1,000,000 plus

(ii) one-half percent (.5%) of the next $4,000,000, plus

(iii) one-quarter percent (.25%) of any amount over $5,000,000.

(iv) borrowers under the MOBP program shall remit to the board or its designee a monthly administrative and guarantee fee equal to one-half percent per annum of the outstanding loan balance.

(b) The financing fee for the SABP program will be as follows:

(i) one percent (1%) of the first $500,000, plus

(ii) one-half percent (.5%) of the next $500,000, plus

(iii) one-tenth percent (.1%) of any amount over $1,000,000.

(5) Borrowers under either the MOBP or SABP program shall pay the costs of issuance of the bonds. The costs of the bond issue may include, but are not limited to, fees of the underwriter, financial advisor, and bond counsel; and the costs of printing, advertising, executing and delivering the bonds.

(6) Financial institutions participating in the board's bond programs shall be entitled to charge borrowers a fee for services provided to borrowers as set forth herein. Allowable fees may include, but are not limited to: loan origination fee, loan servicing fee, inspection fee, disbursement fee, and letter of credit fee.

History: Sec. 17-5-1504, 17-5-1521, MCA; IMP, Sec. 17-5-1504, 17-5-1521, MCA; NEW, 1989 MAR p. 659, Eff. 5/26/89.


 

 
MAR Notices Effective From Effective To History Notes
5/26/1989 Current History: Sec. 17-5-1504, 17-5-1521, MCA; IMP, Sec. 17-5-1504, 17-5-1521, MCA; NEW, 1989 MAR p. 659, Eff. 5/26/89.
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