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§ 3006. Loans for industrial development projects

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 12 Pa.C.S.A. Commerce and TradeEffective: November 1, 2014

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 12 Pa.C.S.A. Commerce and Trade (Refs & Annos)
Part III. Economic Development Programs
Chapter 30. Pennsylvania Industrial Development Program
Effective: November 1, 2014
12 Pa.C.S.A. § 3006
Formerly cited as PA ST 73 P.S. § 306
§ 3006. Loans for industrial development projects
Currentness
The authority may contract to loan an amount not to exceed 50% of the cost of establishing an industrial development project, subject to the following conditions:
(1) Before making the loan, the authority shall determine that:
(i) the borrower is responsible to assume all obligations imposed by the authority in connection with the project, financial or otherwise, and to undertake the operation of the project; and
(ii) the borrower has obtained from other independent and responsible sources a firm commitment for any funds which, in addition to the loan and any other property or assets held by the borrower, are necessary for the completion and operation of the project.
(2) The authority shall determine the interest rate and repayment period of the loan.
(3) The loan must be evidenced by note of the borrower, and secured by a mortgage on the project for which the loan was made, subordinate only to the mortgage securing the first lien obligation issued to secure the commitment of funds provided to pay the cost of the project from the independent and responsible sources, and used in the financing of the project.
(4) The authority may require additional security as it may deem necessary.

Credits

2014, Oct. 22, P.L. 2569, No. 161, § 8.1, effective Nov. 1, 2014.
12 Pa.C.S.A. § 3006, PA ST 12 Pa.C.S.A. § 3006
Current through Act 10 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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