LD 1766
pg. 14
Page 13 of 21 An Act To Simplify the Finance Authority of Maine Act Page 15 of 21
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LR 2611
Item 1

 
F.__Loan insurance payments may not exceed the lesser of:

 
(1)__Principal, outstanding accrued interest and
collection costs approved by the authority; and

 
(2)__The original insured amount; and

 
G.__Terms other than those specified in paragraphs A to F as
may be required by law or by rule of the authority.

 
The authority may provide insurance for related entities of up to
$7,000,000.

 
Notwithstanding any provision to the contrary in this chapter,
the authority may provide special loan insurance benefits to
veterans and wartime veterans determined by rule of the authority
developed in consultation with the Department of Defense,
Veterans and Emergency Management, Bureau of Maine Veterans'
Services.

 
For all loan insurance liability in excess of $1,000,000 and in
other instances when the authority determines it is appropriate,
the authority shall obtain a written assessment from the
Department of Environmental Protection of the environmental
conditions known by the department to exist at a project location
so that the authority fully considers environmental risks when
making its decisions.__Environmental conditions posing risks that
must be considered include, but are not limited to, licensing
obligations, existing or historic regulatory noncompliance and
site clean-up responsibilities.

 
1-A. Coinsurance. Notwithstanding subsection 1, paragraph A,
and section 1026-D, subsection 2, with respect to mortgage
insured loans securing revenue obligation securities of the
authority issued under subchapter III 3, the authority may insure
an amount not to exceed 50% of the original principal amount of
the mortgage loan, plus 50% of accrued interest, and may provide
that mortgage payments be applied so that the insured percentage
of the loan increases and that proceeds of collateral are applied
first to reduce the portion of the loan not insured by the
authority, provided that that insurance shall does not exceed
$3,500,000 in original principal amount for any loan and that the
authority shall does not issue that insurance unless it
determines that the applicant is financially strong and credit
worthy creditworthy and that the loan is adequately secured by
collateral.

 
2. Loan eligibility. The authority may insure mortgage loan
payments under this subchapter subject to the following
requirements:


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