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NO. 131. AN ACT RELATING TO THE VERMONT ECONOMIC DEVELOPMENT AUTHORITY.

(H.683)

It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1. 10 V.S.A. § 216(15) is amended to read:

(15) To delegate to loan officers the power to review, approve and make loans under this chapter, subject to the approval of the manager, and to disburse funds on such loans, subject to the approval of the manager, provided that such loans do not exceed *[$150,000.00]* $250,000.00 in aggregate amount for any industrial loan for any three-year period for any particular individual, partnership, corporation or other entity or related entity, or do not exceed *[$120,000.00 in aggregate amount]* $200,000.00 in aggregate amount if the loan is guaranteed by the Farm Services Agency, or its successor agency, or $150,000.00 in aggregate amount if the loan is not guaranteed by the Farm Services Agency, or its successor agency, for any agricultural loan for any three-year period for any particular individual, partnership, corporation or other entity or related entity. No funds may be disbursed for any loan approved under this provision until three working days after the members of the authority are notified by facsimile or overnight delivery, mailed or sent on the day of approval, of the intention to approve such loan. If any member objects within that three-day period, the approval will be held for reconsideration by the members of the authority at its next duly scheduled meeting.

Sec. 1a. 10 V.S.A. § 217(d) is added to read:

(d) At such time as the authority has exhausted all rights and remedies to enforce the terms of a financing document or mortgage serving as security for a loan, the identity of the borrower and the outstanding principal balance of the loan shall become a public record.

Sec. 2. 10 V.S.A. § 262(5) is amended to read:

(5) The principal obligation of the authority's mortgage does not exceed *[$800,000.00]* $1,300,000.00 of which no more than *[$500,000.00]* $800,000.00 may be secured by land and buildings and no more than *[$300,000.00]* $500,000.00 may be secured by machinery and equipment; such principal obligation does not exceed forty percent of the cost of the project; and the mortgagor is able to obtain financing for the balance of the cost of the project from other sources as provided in the following section;

Sec. 3. 10 V.S.A. § 279b(c) is amended to read:

(c) Upon entering into a contract with a participating bank, the full faith and credit of the state shall be pledged in the amount of $50,000.00 to the reserve account of such bank, created under section 279 of this title. Such amount shall be reduced on a pro rata basis for actual reserve fund contributions resulting from loans made under this subchapter*[; and such pledge shall be eliminated six years from the date that the participating bank contract was executed, or June 20, 1994, whichever is later]*.

Approved: May 12, 2000