(1) A business enterprise may apply for
financing under the economic development bond programs by submitting a loan
application to the board which will review project eligibility and the proposed
use of the money.
(2) For moral obligation bonds, the
financial institution shall submit a complete loan application on a form
provided by the board. The application shall be properly signed and certified
by the borrower and the financial institution. An application signed by the
financial institution shall constitute a commitment by the financial
institution to originate the loan or participate in the financing (if such
participation is required) , in the manner set forth in the application. The
board shall review the complete application with bond counsel to determine
whether the project meets the requirements of these rules and the regulations
of the Internal Revenue Code.
(3) If the applicant has applied for bond
financing which is subject to federal tax exemption and the project appears
eligible, the board shall notify the governing body of the local government in
which the project is located of the pending application for financing and of
the local government's right to conduct a public hearing on the project for the
purpose of determining whether the project is in the public interest. The local
government shall notify the board within fourteen days after receipt of
notification of the pending application of whether the local government intends
to conduct the public hearing.
(4) If the local government elects to
conduct the public hearing, the board and local government shall determine the
date for the public hearing and the board shall publish notice of the public
hearing pursuant to the requirements of 17-5-1526(4) and 17-5-1527(4) ,
MCA. If the local government, after the public hearing, determines that the
project is in the public interest, it shall adopt a resolution which makes
appropriate findings of public interest with respect thereto. The local government
must notify the board within fourteen days of the public hearing of its
findings and provide the board with a copy of the resolution. The board, upon
notification that the local government has determined that the project is in
the public interest, may issue an inducement resolution.
(5) If the local government declines to
conduct the public hearing or fails to notify the board of its intention to
conduct the hearing within fourteen days, the board shall hold a public hearing
on the project for the purpose of determining whether the project is in the
public interest. If the local government fails to notify the board of its
determination of public interest within fourteen days of the hearing, the board
may hold a public hearing on the project for the purpose of determining whether
the project is in the public interest. At the conclusion of the public hearing,
the board may issue its inducement resolution for the project.
(6) If the board determines that time is of
the essence to an applicant applying for financing from federally tax-exempt
bonds, the board may adopt a preliminary inducement resolution after an
application has been submitted in accordance with ARM 8.97.1706 and upon such
other terms and conditions deemed necessary.
(7) Upon receipt of the local government's
determination or upon its own determination that the project is in the public
interest, the board may adopt an inducement resolution. This inducement
resolution shall only constitute an expression of present intention of the
board with respect to the project and shall not constitute a binding commitment
on the part of the board that its bonds or notes will be issued for the
project. This resolution expires one year from its date of adoption.
(8) After the board has approved an application
for financing with federally tax-exempt bonds, but before the board
issues such bonds, a project description shall be submitted to the governor.
The governor shall, in writing, approve the project and certify that the
required public hearing was conducted in compliance with the Internal Revenue
(9) After an application has been approved
by the board, the board may issue a conditional commitment.