An Act To Simplify the Finance Authority of Maine Act
Maine Legislature, Session 121, LD 1766
Committee: Business, Research and Economic Development
Sponsors: KAELIN, BROMLEY, AUSTIN, PELLON, ROGERS, SULLIVAN, SHOREY
Amends: Title 26, Section 103, 10 MRSA §962, 10 MRSA §963-A, 10 MRSA §964, 10 MRSA §969-A, 10 MRSA §975-A, 10 MRSA §986, 10 MRSA §997, 10 MRSA §1023-D, 10 MRSA §1023-I, 10 MRSA §1023-K, 10 MRSA §1023-L, 10 MRSA §1024, 10 MRSA §1026-A, 10 MRSA §1026-B, 10 MRSA §1026-C, 10 MRSA §1026-D, 10 MRSA §1026-E, 10 MRSA §1026-F, 10 MRSA §1026-G, 10 MRSA §1026-H, 10 MRSA §1026-K, 10 MRSA §1026-P, 10 MRSA §1026-R, 10 MRSA §1026-S, 10 MRSA §1029, 10 MRSA §1030, 10 MRSA §1031, 10 MRSA §1032, 10 MRSA §1041-A, 10 MRSA §1044, 10 MRSA §1048

Legislative Document 
No. 1766 
H.P.1288 
House of Representatives, December 22,2003 
An Act To Simplify the Finance Authority of Maine Act 
Submitted by the Fmance Authority of Maine pursuant to Joint Rule 204. 
Received by the Clerk of the House on December 17, 2003. Referred to the Committee on 
Business, Research and Economic Development pursuant to Joint Rule 308.2 and ordered 
printed pursuant to Joint Rule 401. 
Presented by Representative KAELIN of Winterport. 
Cosponsored by Senator BROMLEY of Cumberland and 
/!l~/f7.~ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: AUSTIN of Gray, PELLON of Machias, ROGERS of Brewer, SULLIVAN of 
Biddeford, Senator: SHOREY of Washington. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 10MRSA§962,sub-§I, as amended by PL 1985, c. 344, 
§5, is further amended to read: 
1. 
Loans. 
Encourage 
the 
making 
of 
HleF1;~a~e 
loans 
to 
finance 
the 
planning, 
development, 
acquisition, 
construction, 
improvement, expansion and placing in operation of industrial, 
manufacturing, 
recreational, 
fishing, 
agricultural 
and 
other 
business and natural resource enterprises; 
Sec. 2. 10 MRSA §962, sub-§4, as amended by PL 1989, c. 559, 
§1, is further amended t~o read: 
4. 
Small businesses and veteran-owned small businesses. 
Encourage the making of 
HleF1;~a~e loans to small businesses and 
veteran-owned small businesses; 
Sec. 3. 10 MRSA §963-A, sub-§§6 and 8, as enacted by PL 1985, 
c. 344, §7, are amended to read: 
6. 
COJlllllitment to issue loan insurance. "Commitment to issue 
HleF1;~a~e l,Qgn insurance" means a commitment to provide insurance 
for 
HleF1;~a~e loan payments subject to terms specified by the 
authority. 
8. 
Eligible collateral. 
"Eligible collateral" 
means 
aB 
e±i'!fi:9],e.--E'£ejeet;. 
accounts, 
as-extracted 
collateral, 
chattel 
paper, commercial tort claims, consumer goods, deposit accounts, 
documents, 
equipment. 
farm 
products, 
fixtures, 
general 
intangibles, instruments, investment property. inventory, letter 
of 
credit 
rights, 
manufactured 
homes. 
money, 
real 
estate, 
supporting obligations and accessions to any of the foregoing and 
any other business asse1~. 
Sec. 4. 10 MRSA §963-A, sub-§10, as corrected by RR 1999, c. 
1, §§7 to 9, is amended to read: 
10. 
Eligible 
project. 
"Eligible 
project" 
eF--!!el.i!§fi:91e 
ee±±at;.eFa±~ means any of the following: 
A. 
Any 
Fea±-¥~-t-y--±eeat;.ea--w-.i_t-h-in--t;.A.e--St-a-t-e-,--iBe±\ieliB~ 
wi1;A.e\it;.----~~.i_t~l~---a£y----~aaGr---~~~~----~iHt;.\iFeT 
iHlpFeveHleB1;T-ea£emeR~7-~~~£~~-way~-~~--~~r-~aa4-±yiB~ 
\iBaeF-Wa1;eF-eF-aiF-Fi~A.1; eligible enterprise; 
:8 ... - - A-fl.y- -pe-r...£.Ona-~ -l?FepeF1=y r - -iR€l'l:la-iR~- -wi-t~- -~im1-t,.a.t,.i-G-H- -aBy 
±easeA.e±aT--~~~-Y-r-a€€e~R~--reGei~a&],e.r-~~~--lieeBseT 
~FaBeA.iseT-~~~~-~~i~a1=r-me£€ha£4-i£e7-~~-Hlat;.eFialT 
S\iPP±YT-¥-odu<!-t.-,--·W'eF*--i-n--pFeeessT--&t.~-iB--t-r-ad&-,--eapit:al 
• 
• 
steekT-~~--~HaFaBtYT-~~~-eeBtFaetT-~,--meFt~a~eT 
letteF-e~-eFeait-eF-seeHFity-a~FeemeBtf 
bT--Afiy-~~~~~~-aee~meB&ea-eF-~~~~~~~-~RaeF 
laws-e~-~~~it~-S&a~&-eF-~€~i£~€~€Q-~-~~-~-Fe~isteFee 
HBeeF--a--&&a~~&--~-~~-~~-~~-~~-e€--HSee--~eF 
eateaiB~T-~~~~-~--~~aR£pe~~iR~--~i&a-~-~--yessel 
eHt~ittea-~eF-aRY-SHea-aetiyitYf 
D. 
Any vessel registered under the law of the United States 
or a state; 
E. 
Any energy conservation project; 
F. 
Any energy distribution system project; 
G. 
Any energy generating system project; 
H. 
Any pOllution-control project; 
1. 
Any water supply system project; 
J. 
Any 
underground 
oil 
storage 
facility 
replacement 
project, including equipment installed to meet requirements 
for gasoline service station vapor control and petroleum 
liquids transfer vapor recovery; 
K. 
Any overboard discharge replacement project; 
L. 
Any 
hazardous 
waste 
or 
solid 
waste 
recycling 
or 
reduction project; 
M. 
Any 
aboveground oil replacement or 
including 
equipment 
installed 
to 
meet 
gasoline service station vapor control and 
transfer vapor recovery; 
N. 
Any electric rate stabilization project; 
o. 
Any major business expansion project: 
upgrade project, 
requirements 
for 
petroleum liquids 
P. 
Any 
workers' 
compensation 
residual 
market 
mechanism 
project; 
Q. 
Any clean fuel vehicle project; 
R. 
Any paper industry job retention project; and 
S. 
Any transmission facilities project. 
In addition to and without limiting this subsection, "eligible 
project" 
eF--!!.eli~iB:le--eellat:eFa:l!! also means 
any project 
e~ 
ee:l:lat:eFa:l, 
the 
financing 
of 
which 
through 
the 
issuance 
of 
revenue obligation securities would result in the interest on the 
revenue 
obligation securities qualifying, 
as 
of 
the date 
of 
issuance, as tax-exempt under the United States Code, Title 26, 
Section 103, as amended. 
Sec. 5. 10 MRSA §963-A, sub-§15, as enacted by PL 1985, c. 
344, §7, is amended to read: 
15. 
Facility. "Facility" means an eligible project 
e~--aRy 
e:li~iB:le-ee:l:lat:eFa:l. 
Sec. 6. 10 MRSA §963-A, sub-§27, as enac ted by PL 1985, c. 
344, §7, is amended to read: 
27. 
Loan. "Loan" 
el'-.!'~-t~-],.eaB!! means an extension of 
credit made in consideration of a written promise of repayment or 
any 
other 
conditions 
waiea 
that 
may 
be 
established 
by 
the 
authority, performance of which may be secured by mortgage. 
Sec. 7. 10 MRSA §963-A. sub-§27-A, as enacted by PL 1993, c. 
460, §2, is amended to read: 
27-A. 
Loan 
illlsurance 
agreement. 
"Loan 
insurance 
agreement T" 
!!mel't;~a~e--i'fl-6-H-£-a.fJ.€€-~~...!'-~--'!me-F-8J~-iBSl:<l'aBee 
eeBt:Faet:!! 
means 
an agreement pursuant to which the authority 
insures 
payment of 
a 
mel't:~a~e loan pursuant to 
eaaF~e~--]"lGT 
subchapter II ~, and also means an agreement pursuant to which 
the authority insures or guarantees an insured certificate, if 
the authority's loan insurance liability for insuring an insured 
certificate is in lieu of and not in addition to its liability 
for insuring that portion of a mortgage loan represented by the 
insured certificate. 
Sec. 8. 10 MRSA §963-A, sub-§§30 and 31. as enacted by PL 1985, 
c. 344, §7, are repealed. 
Sec. 9. 10 MRSA §963-A. sub-§36, as enac ted by PL 1985, c. 
344, §7, is amended to read: 
36. 
Loan 
Insurance 
Program. 
"Mel't:~a~e 
Loan 
Insurance 
Program" means the program governed by subchapter II ~. 
Sec. 10. 10 MRSA §963-A, sub-§37, as enacted by PL 1985, c. 
344, §7, is repealed. 
Sec. 11. 10 MRSA §963-A, sub-§38, as enacted by PL 1985, c. 
344, §7, is amended to read: 
• 
38. 
Loan payments. 
"Me~t~a~e Loan payments" means payments 
required by or received on account of a mortgage or any other 
financial 
document, 
including, 
but 
not 
limited 
to, 
payments 
covering interest, installments of principal, taxes, assessments, 
loan insurance premiums and hazard insurance premiums. 
Sec. 12. 10 MRSA §963-A, sub-§44, as enacted by PL 1985, c. 
344, §7, is amended to read: 
44. 
Project. 
"Project" 
means 
any 
eligible 
project 
e!' 
e±i~ia±e-ee±±ate!'a±. 
Sec. 13. 10 MRSA §964, sub-§I, ,A, as enacted by PL 1983, c. 
519, §6, is amended to read: 
A. 
Me!'t~a~e Loan Insurance Program; 
Sec. 14. 10 MRSA §964, sub-§I, ,D, as enacted by PL 1983, c. 
519, §6, is repealed. 
Sec. 15. 10 MRSA §964, sub-§I,~, as amended by PL 1985, c. 
344, §8, is repealed. 
Sec. 16. 10 MRSA §969-A, sub-§5, as amended by PL 1991, c. 
511, Pt. A, §3, is further amended to read: 
5. 
Loan transactions. 
Purchase, 
sell, 
service, 
pledge, 
invest in, hold, trade, accept as collateral or otherwise deal 
in, acquire or transfer, 
on such terms and conditions as the 
authority may specify, any 
me!'t~a~e loan, 
me~t~a~e pass-through 
certificate, pledge including any pledge of 
me~t~a~e revenuer 
me!'t~a~e participation certificate, revenue obligation security 
or other mortgage-backed or mortgage-related security. Any such 
transaction may be conducted by public 
or private offering, with 
or without public bidding. 
In connection with the purchase or 
sale 
of 
a 
me~t~a~e 
loan 
or 
of 
a 
beneficial 
interest 
or 
participation in a 
me!'t~a~e loan, the authority may enter into 
one or more agreements providing for the custody, control and 
administration of 
the 
me!'t~a~e loan. 
Any 
such 
agreement 
may 
provide that the authority, 
a 
financial institution or other 
person shall act as trustor, 
trustee or custodian under 
the 
agreement. Any such agreement may provide that, with respect to 
me~t~a~e loans governed by the agreement, title to a 
me~t~a~e 
loan, or to a beneficial interest or participation in a 
me!'t~a~e 
loan, is deemed to have been transferred on terms and to the 
extent specified in that agreement and that the effect of a sale 
of a beneficial interest or participation in a 
me!'t~a~e loan is 
the same as a sale of a me!'t~a~e loan. 
The authority may issue or cause to be issued certificates or 
other instruments evidencing the holder's fractional interest in 
a pool of 
FAe!?l:~a~e loans, which interest may be undivided or 
limited to 
one 
or 
more 
specific 
loans. 
Whether 
or 
not 
the 
certificates or instruments are of such form or character as to 
be negotiable instruments under Title 11, article 
g 
-A, 
the 
certificates or instruments are negotiable instruments within the 
meaning of and for all the purposes of Title 11, article g 3-A, 
subject only to such registration requirements as the authority 
may establish. 
In connection with the exercise of the powers authorized in this 
subsection and those plOwers otherwise granted to the authority, 
the authority may create and operate 
a 
secondary market 
and 
warehousing facility or facilities for 
FAe!?l:~a~e loans or the 
insured portion of 
FAe!?l:~a~e loans that provide liquidity to 
lenders making FAe!?l:~a~e loans; 
Sec. 17. 10 MRSA §975-A, sub-§l, ~A, as enacted by PL 1985, c. 
344, §25, is amended to read: 
A. 
After filing of a written application or proposal for 
financial assistance or property transfer, in form specified 
by or acceptable to the authority: 
(1) 
Names of recipients of or applicants for financial 
assistance, including principals, where applicable; 
(2) 
Amounts, 
types 
and general 
terms 
of financial 
assistance provided to those recipients or requested by 
those applicants; 
(3) 
Descriptions of projects and businesses benefiting 
or to benefit from the financial assistance; 
(4 ) 
Names 
of transferors or transferees, 
including 
principals, of property to or from the authority, the 
general terms of transfer and the purposes for which 
transferred property will be used; 
(5) 
Number of jobs and the amount of tax revenues 
projected or resulting in connection with a project; 
(6) 
Upon the authority's satisfaction of its FAe!?l:~a!e 
loan insurance liability, the amount of any FA9Ft;!a!e 
loan insurance payments with respect to a 
FA9Ft;~a!e loan 
insurance contract; and 
.. 
.. 
• 
.. 
(7) 
Names of financial institutions participating in 
providing financial assistance and the general terms of 
that financial assistance; 
Sec. 18. 10 MRSA §986, sub-§4, as enacted by PL 1983, c. 519, 
§7, is amended to read: 
4. 
Procure insurance. 
The authority may procure insurance 
from public or private entities against any loss in connection 
with its operations and property interests, including insurance 
for any loss in connection with any bonds or obligations held by 
it and any of its property or assets and for payment of any bonds 
or obligations issued by it. To the maximum extent possible, the 
authority 
shall 
use 
the 
I!lel't;~a~e 
loan 
insurance 
program 
established pursuant to subchapter II ~. 
Sec. 19. 10 MRSA §997, sub-§2, 1fC, as amended by PL 1985, c. 
344, §36, is further amended to read: 
C. 
Mel't;~a~e LQgn insurance for loans whieh that satisfy the 
following requirements: 
(1) 
The lender must be a seller of agr icul tural land 
and other eligible collateral: 
(a) 
Who is a natural person; or 
(b) 
Whieh That is a family farm corporation; 
( 2 ) 
The 
borrower 
must 
be 
an 
entrant 
to 
natural 
resource enterprises; 
(3) 
The loan must be made for the purpose of financing 
all or part of the purchase price of agricultural land 
and other eligible collateral; and 
(4) 
The 
interest 
rate 
on 
the 
loan 
must 
be 
significantly less than the market interest rate, if 
required by the authority; and 
Sec. 20. 10 MRSA §1023-D, sub-§3, as amended by PL 2001, c. 
231, §3, is further amended to read: 
3. 
Application of fund. 
Money in the fund may be applied 
to carry out any power of the authority under this section or 
under or in connection with section lG69-~ 1026-A, subsection 1, 
paragraph A, 
subparagraph (1), division (b), including, but not 
limited to, to pledge or transfer and deposit money in the fund 
as security for and to apply money in the fund in payment of 
principal, 
interest and other 
amounts 
due 
on 
insured loans. 
Except as otherwise prohibited under this subsection, money in 
the fund may be used for direct loans or grants for all or part 
of underground oil storage facility projects, 
underground oil 
storage tank projects, aboveground oil storage tank or facility 
construction or replacement projects or gasoline service station 
vapor 
control 
or 
petroleum 
liquids 
transfer 
vapor 
recovery 
projects when the authority determines that: 
A. 
One or more of the following circumstances exists: 
(1) 
The underground oil storage facility or tank is 
leaking or has been identified by the Department of 
Environmental 
Protection 
as 
posing 
an 
environmental 
threat, or removal is required by applicable law; 
(2) 
The applicant is required to install equipment 
related to the improvement of air quality pursuant to 
requirements for gasoline service station vapor control 
and petroleum liquids transfer vapor recovery; 
(3) 
The 
applicant 
is 
constructing, 
replacing 
or 
renovating a tank or facility used for the aboveground 
storage 
of 
oil 
and 
the 
work 
is 
supervised 
by 
a 
state-registered professional 
engineer 
with 
training 
and 
experience 
in 
aboveground oil 
storage facility 
installation; or 
(4) 
The applicant is renovating an underground oil 
storage tank or facility, the work is supervised by an 
underground oil storage tank installer certified by the 
Board 
of 
Underground 
Storage 
Tank 
Installers 
under 
Title 32, chapter 104-A and the estimated cost of the 
work exceeds $1999 $1,000; 
B. 
The applicant, if the applicant is not a unit of local 
government, demonstrates financial need for the assistance; 
and 
c. 
If the assistance includes a loan, there is a reasonable 
likelihood that the applicant will be able to repay the loan. 
Applicants demonstrating the 
related to the improve·ment of 
19~~-~ 1026-A, 
subsection 
1, 
division (b) and who 
.. 10 fewer 
requirement to install equipment 
air quality pursuant to section 
paragraph 
A, 
subparagraph 
(1), 
than 15 service stations, and who 
are not able to 
than $35,000 per 
expenses relating 
repay a loan, are eligible to receive no more 
service station in grants for the payment of 
to the installation of this equipment. 
" 
.. 
The authority, pursuant to Title 5, chapter 375, subchapter II 2, 
shall 
adopt 
rules 
for 
determining 
eligibility, 
feasibility, 
terms, conditions and security for the loans and grants. 
In the 
case of loans, the authority may charge an interest rate that may 
be as low as 
0'1-0 and may be greater, depending on the financial 
abili ty of the applicant to pay as determined by the authority, 
up to a maximum of the prime rate of interest charged by major 
New York banks. 
The maximum the authority may loan or grant to 
anyone borrower, including related entities as determined by the 
authority, is $600,000. 
Loans or grants for the purposes listed 
in paragraph A, subparagraph (3) may not exceed $1,000,000 in a 
12-month period. 
Grants may not be made for the purpose listed 
in paragraph A, subparagraph (4). 
Money in the fund not needed 
currently to meet the obligations of the authority as provided in 
this section may be invested as permitted by law. 
Sec. 21. 10 MRSA §1023-D. sub-§5. as enacted by PL 1987, c. 
521, §4, is amended to read: 
5. 
Revolving fund. 
The fund saa±±--ae is a nonlapsing, 
revolving fund. 
All money in the fund saa±± must be continuously 
applied by the authority to carry out this section and section 
lG69-~ 
=1~0~2~6~-~A~,~~s~u~b~s~e~c~t~i~o~n~~1~, __ ~p~a~r~a~g~r~a~p~h~~AL, __ ~s~u~b~p~a~r~a~g~r~a~p~h~~(~l~)L' 
division (b). 
Sec. 22. 10 MRS A §1023-E. as enacted by PL 1987, c. 846, §5, 
is repealed. 
Sec. 23. 10 MRSA §1023-I, sub-§5, as amended by PL 1993, c. 
722, Pt. B, §1 and affected by §3, is further amended to read: 
5. 
Revolving fund. 
The fund is a nonlapsing, 
revolving 
fund. 
All money in the 1992 Bond Proceeds Account of the fund 
must be continuously applied by the authority to carry out this 
section and 
section 1026-J 
and all 
money 
in the 
1994 
Bond 
Proceeds Account of the fund must be continuously applied by the 
authority to carry out this section ans-see~iens, section 1026-A, 
subsection 1, paragraph A, 
subparagraph (2) 
and section 1026-J 
ans-±G69-K. 
Sec. 24. 10 MRSA §1023-K. sub-§3, as amended by PL 2001, c. 
714, Pt. JJ, §2, is further amended to read: 
3. Application of fund. 
The fund may be applied to carry 
out any power of the authority under or in connection with 
section lG69-P 1026-A, subsection 1, paragraph A, 
subparagraph 
(1), division (c), including, but not limited to, the pledge or 
transfer and deposit of money in the fund as security for and the 
application of the fund to pay principal, interest and other 
amounts due on insured loans. 
The fund may be used for direct 
loans to finance all or part of any clean fuel vehicle project 
when the authority determines that: 
A. 
The applicant demonstrates a reasonable likelihood that 
the applicant will be able to repay the loan; 
B. The applicant demonstrates a reasonable likelihood that 
the applicant will not be able to obtain the funds necessary 
to undertake all or any part of the project from any other 
source, 
including 
a 
loan 
insured 
under 
section 
lG6e-P 
1026-A, 
subsection 
1, 
paragraph 
A, 
subparagraph 
(1), 
division (c); 
C. The project is technologically feasible; and 
D. 
The project will contribute to a reduction of or more 
efficient use of fossil fuels. 
The 
authority shall adopt 
rules for 
determining eligibility, 
project feasibility, 
terms, 
conditions and security for loans 
under this section. 
Rules adopted pursuant to this section are 
routine technical rules under Title 5, chapter 375, subchapter 
II-A 2-A. 
Money in the fund not currently needed to meet the 
obligations of the authority as provided in this section may be 
invested in such a mannE!r as permitted by law. 
Sec. 25. 10 MRSA H023-K, sub-§5. as enacted by PL 1997, c. 
500, §5, is amended to read: 
5. 
Revolving fund. 
The fund is a non1apsing, 
revolving 
fund. 
The fund must be continuously applied by the authority to 
carry out this section and section lG6e-P 1026-A, subsection 1, 
paragraph A, subparagral)h (1), division (c). 
Sec. 26. 10 MRSA §1023-L, sub-§3-A, as enacted by PL 2001, c. 
356, §6, is amended to read: 
3-A. 
Use of funds by authority. 
The authority may use 
money in the fund to carry out any power of the authority under 
this section, section 1023-MT--6€-£-t-i-on--1G6e-R or section lG6e-:; 
1026-A, subsection 1, paragraph A, subparagraph (1), division (d) 
or (e), including, but not limited to, the pledge or transfer and 
deposit of money in the fund as security for and the application 
of money in the fund in payment of principal, interest and other 
amounts due on insured loans. 
Money in the fund not needed to 
meet the obligations of the authority as provided in this section 
or section 1023-M may be invested as permitted by law. 
Any costs 
incurred by the authority in administering this fund may be taken 
from interest from all sources of the fund. 
.. 
Sec. 27. 10 MRS A §1023-M, sub-§2, as amended by PL 2003, c. 
129, §§l and 2 and affected by §5, is further amended to read: 
2. 
Eligibility 
to 
participate 
in 
loan 
program. 
The 
authority may use money in the fund to carry out any power of the 
authority under this section or under section 1969-8 1026-A, 
subsection 
1, 
paragraph 
A, 
subparagraph 
(1), 
division 
(e), 
including, but not limited to, the pledge or transfer and deposit 
of money in the fund as security for and the application of money 
in the fund in payment of principal, interest and other amounts 
due on insured loans. 
Money in the fund may be used for direct 
loans or deferred loans for all or part of the costs of the 
Plymouth waste oil site remedial study, past cost settlement, 
implementation of institutional controls selected by the United 
States 
Environmental 
Protection 
Agency 
to 
prevent 
use 
of 
contaminated groundwater by nearby residents and time-critical 
removal action costs when the authority determines that: 
A-I. 
The applicant has been identified by the United States 
Environmental Protection Agency as a potentially responsible 
party with respect to the waste oil disposal site and the 
applicant is alleged by the United States Environmental 
Protection 
Agency 
to 
have 
generated waste oil 
from 
an 
address or location within the State; 
B. 
The applicant has 
signed the Administrative Order by 
Consent pursuant to United States Environmental Protection 
Agency Docket No. CERCLA l-2000-0004; 
B-1. 
The applicant has signed the West Site/Hows Corner 
RI/FS Group Agreement; 
B-2. The applicant has entered into a consent decree with 
the 
United 
States 
and 
the 
State 
regarding 
past 
cost 
settlement at the Plymouth waste oil disposal site and the 
applicant is a participant in that consent decree or the 
applicant has entered into an inability-to-pay settlement 
with the United States Environmental Protection Agency: 
C. 
The applicant is not a state or federal agency; and 
D. There is a reasonable likelihood that the applicant will 
be able to repay the loan. 
Money in the fund may not be used for attorney's fees associated 
with costs of the Plymouth waste oil site remedial study, past 
cost 
settlement, 
implementation 
of 
institutional 
controls 
or 
time-critical removal action, except that money in the fund may 
be 
used for attorney's fees 
incurred for the preparation of 
restrictive covenants, including deed and title research, for the 
properties within the 
area identified by 
the 
United States 
Environmental Protection Agency as the institutional control zone 
in order to implement the institutional controls selected by the 
United States Environmental Protection Agency. 
A past cost settlement share may not be paid from the fund to a 
person if the United St:ates Environmental Protection Agency has 
waived payment of the share based on the person's financial 
capacity. 
The authority may condition payments related to the 
Plymouth waste oil disposal site on receipt of an abili ty-to-pay 
determination from the agency. 
The authority, pursuant to Title 5, chapter 375, subchapter II 1, 
shall 
adopt 
rules 
for 
determining 
eligibility, 
feasibility, 
terms, conditions, 
secu.r i ty and fees for the loans, including 
deferred loans. 
The aut:hority shall adopt rules that provide for 
a simplified loan application process for loan requests of under 
$6999 $2,000. 
Rules adopted pursuant to this subsection are 
routine technical rules 
as defined in Title 5, 
chapter 
375, 
subchapter II-A 2-A. 
The authority shall charge an interest rate 
of 
O'l-o on all loans. 
Loan repayment must be deferred until the 
United States Environmental Protection Agency determines that 
construction of the final 
remedy is complete. 
If the total 
amount of the loan requests exceeds funds available under section 
1023-L, 
the authority shall prorate the 
amount 
of the 
loan 
available to each applicant by the ratio of the funds available 
to the total loans requested. 
Sec. 28. 10 MRSA §1024, sub-§I, as amended by PL 1989, c. 543, 
§4, is further amended t.o read: 
1. 
Mortgage 
Reserve 
Request for funds. 
Insurance 
Fund and 
Fund, 
exclusive of 
I f at any time the money in the 
the money in the Loan Insurance 
the money pledged or assigned as 
security 
for 
specific 
obligations 
of 
the 
authority, 
is 
insufficient to meet expenses and obligations of the authority, 
as these expenses and obligations are projected by the authority 
to become due and payable, the authority shall in writing request 
the Governor to provide the necessary money. 
The Governor shall 
transfer sufficient money to the Mortgage Insurance Fund or Loan 
Insurance Reserve Fund, as directed by the authority, from the 
State Contingent Account or the proceeds of bonds of the State 
issued pursuant to subsection 2. 
If at any time the money in the 
Underground 
Oil 
Storage 
Replacement 
Fund, 
exclusive 
of 
any 
amounts reserved by law for direct loans pursuant to section 
1023-D, subsection 3, is insufficient to meet the expenses and 
obligations of the authority incurred pursuant to section 
196fi-~ 
1026-A, 
subsection 1, 
paragraph A, 
subparagraph (1), division 
~, as these expenses 
and obligations are projected by the 
authority to become 
due 
and payable, 
the authority shall in 
Page Il-LR26l1(1) 
• 
writing request the Governor to provide the necessary money. 
Within 30 days of receipt of the request, the Governor shall 
transfer 
sufficient 
money 
to 
the 
Underground 
Oil 
Storage 
Replacement Fund from the Ground Water Oil Clean-up Fund or the 
proceeds of bonds of the State issued pursuant to subsection 2. 
1~-~-~-~ime-~he-~-i&-~he-~~~~~~-ReFlaeemeRE 
~~RaT-eHeJ~6ive-e~-~-~~~~~~-~-&~-~~~e-~eF-aiFeeE 
leaRs - j>-\H'-s-uant.- -~ 
- 6e€~ieR- -.J...().2...3----E-,- -&~b&ee~ie& - -J"7 - -i-s- - iRS ~Ii Ii ie ieRE 
Ee-~-Ehe-~~-a&G-e~~~~~~e£~-~~-~he-~-~~-iRe~FFea 
F~Fs~aRE-~e-6e€~~eR-~~~~-~~~~-a&G-ebli~aEieR&-aFe 
FFe~eeEee--bY--Ehe--a~EheFiEY--Ee--beeeme--e~e--aRe--FayableT--Ehe 
a~EheFiEy-6h~~~-~~~--~-WFiEi&~r-~he-~~~-~~-~~~iGe-Ehe 
ReeessaFy-meney,--~~~~-~g-4~y6-~--~e&i~E-efi-~~-~~&~r-Ehe 
GeveFReF--~had~--~~~~---&~~~ieie&E--meRey--~~-~~--GveFbeaFe 
QisehaF~e-~~~~--~~&G-fi£em-~~-SEaEe-~~~~£~e£~-~-eF 
Ehe-~e€ee46-~-~-&~-Ehe-S~~~e-~~~~-~-6~bseeEieR 
6T 
Sec. 29. 10 MRSA §1026-A, as amended by PL 1993, c. 319, §l, 
is further amended to read: 
§1026-A. Insurance of loans 
1. 
Insurance. 
The 
authority 
may 
make 
commitments 
and 
agreements to insure 
meFE~a~e loan payments. Any 
meFE~a~e loan 
insurance shall must be subject to the following: 
A. 
A-~~~~-maY-Re~-~-a~~~ieG-iB-~~&~~-ERaE 
we~leT--~eF--a&y-~-~~}eot,--~~~~-~he--Fe£€eB~a~e--ef 
meFE~a~e-FaymeB~6-~£6~£e4-~-~~~~~~~r~~~E-EhaE-Ehi6 
FaFa~FaFh-eee6-Re~-~y-~~~~~-~~-aRy-eRe 
FFe~eeE-maY-Re~-~~~~~~~~-~-~&&e~-e~-69%-ef 
Ehe-~~~~-~~i&&i~a~-ame~R~-~--Ehe-me£~~~~e--~-eF Loan 
insurance may not exceed: 
(1) 
IR--~-~-e~--iR&~FaRee-~~~-~£~~~~--te 
seetieR---±-O-2-6-B-,--$6S(hGGGf One hundred percent of the 
principal 
amount 
of 
the 
loan made 
to 
any borrower 
including related entities for' any of the following 
types of loans or projects: 
(a) 
Loans 
to 
veterans 
and 
wartime 
veterans, 
except that the authority may not at any time 
have, in the aggregate amount of the principal and 
interest outstanding, 
loan insurance obligations 
pursuant to this division exceeding $5,000,000; 
(b) 
Underground 
and 
aboveground 
oil 
storage 
facility 
projects 
and 
projects 
to 
install 
equipment 
related 
to 
the 
improvement 
of 
air 
guality 
pursuant 
to 
reguirements 
for 
gasoline 
service 
station 
vapor 
control 
and 
petroleum 
liguids transfer vapor recovery, except that the 
authority 
may 
not 
at 
any 
time 
have, 
in 
the 
aggregate 
amount of 
the principal 
and interest 
outstanding, 
loan insurance obligations pursuant 
to this division exceeding $5,000,000; 
(c) 
Clean fuel vehicle projects, except that the 
authority 
may 
not 
at 
any 
time 
have, 
in 
the 
aggregate 
amount of the principal 
and interest 
outstanding, 
loan insurance obligations pursuant 
to this division exceeding $5,000,000; 
(d) 
Waste oil disposal site clean-up projects, 
except that the authority may not at any time 
have, in the aggregate amount of the principal and 
interest outstanding, 
loan insurance obligations 
pursuant to this division exceeding $1,000,000; or 
(e) 
The Plymouth waste oil remedial study, except 
that the! authority may not at any time have, in 
the aggregate amount of the principal and interest 
outstanding, 
loan insurance obligations pursuant 
to this division exceeding $1,000,000; and 
{ 2 } 
;ta--~---c-a&€--- ef--iasHF2usee--p-r-{W-ided-- ptl-r-6-+.l-a£-t.--te 
seetiea--1G69-bT--$6§TGGG r --eF 
Ninety 
percent 
of 
the 
principal amount of the loan made to any borrower, 
including related entities for any other manufacturing 
enterprise, 
industrial 
enterprise, 
recreational 
enterprise, 
fishing 
enterprise, 
agricultural 
enterprise, natural resource enterprise or any other 
eligible business enterprise; 
f 6 + ---l-B- - -t-he- -- -€-a-6€- -e E - -],.B-&bl:F-a:-ae€- ~ ¥-o-v-,i-ded- - ptl-r-6-+.l-a£-t.- - te 
seetiea-1G69-9T-$lTGGGTGGGt 
B. 
The loan sRall must be serviced as required by the 
authority; aaa 
bT--~-G&heF--t.~£m£-~-maY-~-Fe~HiFea-~-baw-e~-~-tRe 
aHtR9FitYT 
D. 
The authority must determine that there is a reasonable 
prospect that the loan will be repaid; 
E. 
The loan must be in compliance with the credit policy of 
the authority; 
• 
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, 
aBEl-~-.i-on--lQ6e-~T-~--i-{}U--6T with respect to 
ffieFt;~a~e 
insured 
loans 
securing 
revenue 
obligation securities 
of 
the 
authority issued under subchapter ±±± }, the authority may insure 
an amount not to exceed 50'l-o of the original principal amount of 
the 
ffieFt;~a~e loan, plus 50% of accrued interest, and may provide 
that ffieFt;~a~e 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 ssa;:!,;:!, 
does not exceed 
$3,500,000 in original principal amount for any loan and that the 
author i ty 
ssa;:!,;:!, 
does 
not 
issue 
that 
insurance 
unless 
it 
determines that the applicant is financially strong and sFeElit; 
weFt:sy creditworthy and that the loan is adequately secured by 
collateral. 
2. 
Loan 
loan payments 
requirements: 
eligibility. 
under this 
The authority may insure 
subchapter subject to the 
Page l4-LR26ll(1) 
ffieFt;~a~e 
following 
A. 
The meF~~a~e-6ha~~ loan must be secured by a lien on or 
a security interest in eligible collateral, subject to such 
encumbrances, 
including, 
without 
limitation, 
coordinate 
first liens, 
as 
are acceptable to the 
authoritYT-~~eepE 
~aatT-~~-tae-~~~~i~~-pFiaeipa~-~--e~-~~-meFt~a~e 
ia6~Faaee-~£~~-~~~~r-~ae-14e£-~--~r~&~-ia~eFesE 
saa~~-ae-a-~iFs~-~iea-eF-EiFsE-see~Fi~y-ia~eFes~; 
B. 
The 
used or 
eligible 
held by 
enterprise; 
collateral 
or 
saa~~ 
saa~~ must be owned, 
otherwise benefit an 
leased, 
eligible 
C. 
The 
meF~~a~e--and--Fe~aEeEl. documents 
saa~~ must contain 
provisions satisfactory to the authority pertaining to the 
payment 
of 
principal 
and 
interest 
and 
saa~~ 
contain 
covenants and other provisions satisfactory to the authority 
pertaining 
to 
F€fal---e6~a~e 
taxes, 
assessments, 
repairs, 
maintenance, aaiSal'EI. insurance, 
meF~~a<§fe-4££-\,l.£aaeeT default, 
remedies, 
transfer or alteration of eligible collateral, 
change in management or control of the 
meF~~a~eF business 
and such other matters as the authority may determine; and 
D. 
Other conditions whiea-IDay---ha¥e--aeea prescribed by law 
or by the authority must have been complied with. 
~T--~~~-iBSQFed-~~-~1m~~~~-~e£-~~~-bQsiBeSSeSy 
Waeaeve F - - a£- - -appJ.--i£·ant- - -app-l-i-B-&- - -f--<H:- - -ffiG-rt-q.~ - -ia&IH'·aaee - - ~aEl.e F 
see~ieas-~-aaEl.--~~-e~--&&&&~&&-~~~~~--aaG-~~~--Eae 
a~~aeFi~y--may--ias~Fe--meF~~a~e--~eaas--EeF--waiea--~ae--eemaiaeEl. 
pFiaeipa~-~~--o-~-meF~~a~e--i-n6-H~-a-f1.€-e--o-E--aeEa-~-e£-t--i-€ffi6--<io--aeE 
eHeeeEl.-$~T±ggTgggT 
4. 
Ineligible for loan insurance. 
The authority may not 
provide loan insurance for the following: 
A. 
Investment real estate; 
B. 
Religious organizations; 
C. 
Fraternal organizations; 
D. 
Residential housing; or 
E. 
Consumer loans. 
5. 
Limitations 
on 
lOan 
insurance. 
The 
authority 
may 
establish a maximum insurance liability for particular sectors by 
rule. 
Rules 
adopted pursuant to this subsection are routine 
Page l5-LR26ll(1) 
.. 
technical rules as defined in Title 5, chapter 375, subchapter 
2-A. 
Sec. 30. 10 MRSA §1026-B, as amended by PL 1999, c. 504, §9, 
is repealed. 
Sec. 31. 10 MRSA §1026-C, as amended by PL 1997, c. 455, §6 
and c. 489, §6, is repealed. 
Sec. 32. 10 MRSA §1026-D, as amended by PL 2001, c. 417, §15, 
is repealed. 
Sec. 33. 10 MRSA §1026-E, first 1[, as amended by PL 1985, c. 
714, §25, is further amended to read: 
In addition to its other powers under this chapter, subject 
to the limitations of this subchapter, 
eHeept,-~-i-Qn--J.Q~9-AT 
sY9seet,i9B--IT--paFa~Faph--AT--aBa--seet,i9Bs--IQ~9-8T--lQ69-G--aBa 
lQ69-~T the authority may insure mortgage payments with respect 
to mortgage 
loans designated as 
one or more 
pools or other 
segregated portfolios. Any such insurance shall may not exceed 
50% of the aggregate principal balances of the mortgage loans as 
of the date on which the mortgage 
loans are designated for 
inclusion in a pool. The authority shall, by rulemaking pursuant 
to Title 5, chapter 375, subchapter ±± ~, establish requirements 
for demonstrating project feasibility and for collateral. 
Sec. 34. 10 MRSA §1026-F, as amended by PL 1993, c. 601, §3, 
is repealed. 
Sec. 35. 10 MRSA §1026-G, as enacted by PL 1987, c. 846, §9, 
is repealed. 
Sec. 36. 10 MRSA §1026-H, sub-§4, 1[1[B and C, as enacted by PL 
1989, c. 552, §14, are amended to read: 
B. 
In the case of security for commercial loans, funds may 
be provided from the fund established under section 
lQ~9-G 
1023-F to the lender as collateral for the loan on such 
terms and conditions as may be established by the authority 
by rulemaking pursuant to the Maine Administrative Procedure 
Act, Title 5, chapter 375, subchapter ±± ~, PF9Viaea-t,hat, as 
long as funds deposited with the lender do not exceed 45% of 
the total loan. 
The authority may provide that the lender 
may apply the deposited money from the fund to the loan in 
the event of default prior to application of collateral to 
the loan. 
The authority may also provide funds to a lender 
as a deposit in the name of the authority at a reduced rate 
of 
interest 
pF9viaea----t,hat 
as 
long 
as 
the 
interest savings to the lender is passed on to the borrower 
in the form of a lower interest rate on the loan. 
C. 
In the case of security for equity investments, 
the 
authority 
may 
pledge 
or 
deposit 
money 
from 
the 
fund 
established under section 
lG~9-G 1023-F as security for up 
to 30% of a direct equity investment in an eligible borrower 
on terms and conditions established by the authority by 
rulemaking pursuant to the Maine Administrative Procedure 
Act, Title 5, chapter 375, subchapter II ~. 
Sec. 37. 10 MRSA §1026-K, as enacted by PL 1993, c. 319, §2, 
is repealed. 
Sec. 38. 10MRSA§1026-0, as enacted by PL 1997, c. 217, §1, 
is repealed. 
Sec. 39. 10 MRSA §1026-P, as enacted by PL 1997, c. 500, §6, 
is repealed. 
Sec. 40. 10 MRSA §1026-R, as reallocated by RR 1999, c. 1, 
§14, is repealed. 
Sec. 41. 10 MRSA §1026-S, as enacted by PL 1999, c. 713, §4, 
is repealed. 
Sec. 42. 10 MRSA §1029, as amended by PL 1987, c. 846, §10, 
is further amended to read: 
§1029. Insurance of subchapter 3 loans 
1. 
Eligible for insurance. All payments required under a 
mortgage, 
a loan agremnent or related documents for a project 
financed 
by 
revenue obligation securities issued pursuant to 
subchapter III .1, including revenue obligation securities whieh 
FRay.thQ.t. provide full or partial financing for more than one 
project, 
shall--ae 
arEt eligible for 
insurance 
to 
the extent 
permitted under this subchapter. 
2. 
Insurance payment. In any case where when the authority 
becomes obligated by contract or other agreement to make 
an 
insurance payment with respect to any insured mortgage or other 
agreement issued with respect to insured subchapter III 1 loans, 
the authority shall: 
A. 
Make the payment at the time and in the manner provided 
by 
the 
applicable 
contract 
or 
agreement, 
charging 
the 
payment 
to 
the 
Mortgage 
Insurance 
Fund, 
Loan 
Insurance 
Reserve Fund or, in the case of payments required under 
agreements issued ~arsaaa~-~e-6ee~ieR-IG~e-~ for aboveground 
and underground storage facility replacement projects, to 
the Underground Oil Storage ~aei±iEY Replacement Fund eFr-iR 
Eae--€a6e--~--~~-~~~~--~~~--~FeeffieH~&--iss~ea 
P~Fs~aHE--Ee--seeEieR--196e-Gr--Ee--Eae--QveFaeaFa--~iseaaF~e 
Rep±aeeffieRE-~~Ra; 
D. 
Take all reasonable steps to enforce the payment of 
amounts due from the mortgagor. 
The trustee for any bond or note 
bondr orL 
if there is no trustee, 
saa±l-aave has the right to bring 
payment 
in 
accordance 
with 
the 
executed by the authority. 
issued in anticipation of the 
the holder of any bond or note 
suit against the authority for 
contract 
or 
other 
agreement 
Sec. 43. 10 MRSA §1030, as amended by PL 1987, c. 846, §ll, 
is further amended to read: 
§I030. Incontestability 
Any 
ffieFE~a~e loan insurance commitment or contract executed 
and delivered by the authority under this subchapter saall-ae is 
conclusive evidence of the eligibility of the 
ffieFE~a~e loan for 
insurance subject to satisfaction of any conditions set forth in 
the 
ffieFE~a~e loan insurance contract or commitment and that the 
requirements of sections 1026-A Ee-~g6e-G and 1026-E have, to the 
extent determined applicable by the authority, been satisfied or 
made 
conditions of the 
ffieFE~a~e loan insurance 
commitment or 
contract, 
and 
the 
validity 
of 
any 
ffieFE~a~e 
10aQ 
insurance 
commitment or contract so executed and delivered saaJJ--ae is 
incontestable in the hands of an insured except for fraud or 
misrepresentation on the part of the insured. 
Sec. 44. 10 MRSA §1031, as amended by PL 1985, c. 344, §54, 
is further amended to read: 
§I031. Loans eligible for investment 
MeFE~a~es Loans insured under this subchapter are made legal 
investments for all insurance companies, trust companies, banks, 
investment 
companies, 
savings 
banks, 
savings 
and 
loan 
associations, executors, trustees and other f iduciar ies, public 
and private pension or retirement funds and other persons. 
Sec. 45. 10 MRSA §1032, sub-§3, as amended by PL 1993, c. 410, 
Pt. EEEE, §2, is further amended to read: 
3. 
Security for loans. 
With respect to 
that may be insured under this subchapter, 
agreements 
benefiting eligible enterprises 
any ffieFE~a~e loans 
interest rate swap 
and 
loans 
to 
the 
authority to be used for direct loans to eligible enterprises or 
students pursuing higher education, 
the authority may provide 
that such ma~E~a~e loans, interest rate swap agreements or loans 
to the authority must be secured by one or more capital reserve 
funds established pursuant to subsection 1 
in~tead of or in 
addi tion to 
me~E~a~e insurance provided under other sections of 
this 
subchapter. 
Limitations 
and 
requirements 
applicable 
to 
ma~E~a~e insurance under sections 1026-A to 1028 are applicable 
to ma~~~a~e loans, but not interest rate swap agreements or loans 
to the authority, to which one or more capital reserve funds 
apply 
as 
if 
the 
mE'~E~a~e 
loans 
were 
backed 
by 
ma~E~a~e 
insurance. 
Capital reserve funds may secure interest rate swap 
agreements pertaining to eligible enterprises that demonstrate 
the ability to honor the swap agreement as determined by the 
authority and that do not have as a principal element space for 
retail sales or professional office space, 
as defined by the 
authority. 
Any 
commitment 
with 
respect 
to 
a 
me~E~a~e loan 
executed and delivered pursuant to this section is conclusive 
evidence of the eligibility of the 
me~E~a~e loan for insurance 
and 
the 
validity 
of 
any 
such 
commitment 
or 
contract 
1S 
incontestable 
in 
the 
hands 
of 
a 
ma~E~a~e 
lender, 
swap 
counterparty or lender to the authority except for 
fraud or 
misrepresentation 
on 
the 
part 
of 
the 
me~E~a~e lender, 
swap 
counterparty or lender to the authority. 
Ma~E~a~es Loans secured 
by capital reserve 
funds 
under this 
section are 
made 
legal 
investments for all insurance companies, trust companies, banks, 
investment 
companies, 
savings 
banks, 
savings 
and 
loan 
associations, executors, trustees and other fiduciaries, public 
and private pension or retirement funds and other persons. 
Sec. 46. 10 MRSA §JL032, sub-§6. as amended by PL 1997, c. 217, 
§2, is further amended to read: 
6. 
Obl.iqations ollltstandinq. 
The authority may not have at 
anyone time outstanding obligations to which this section is 
stated in any agreement of the authority· to apply in principal 
amount 
exceeding 
$150, 000, 000, 
less 
the 
amount 
of 
revenue 
obligation securities to which section 1053 is stated in the 
trust agreement or 
otht~r document to apply. 
Amounts of revenue 
obligation securities that are not taken into account pursuant to 
section 1053, subsection 6, 
may not be taken into account for 
purposes of determining the amount that may be outstanding under 
this section. 
g£-~~-~~~~~r-$lT999Tggg-~~-~-FeseFveg 
£a~-~~-ias~~eg-~~~--Ee-~~-lg~e-gT Notwithstanding 
the foregoing, the authority may additionally have outstanding at 
anyone time up to $3,500,000 of obligations relating to direct 
loans to students pursuing higher education. 
Sec. 47. 10 MRSA §1041-A, first 1[, as enacted by PL 1991, c. 
606, Pt. F, §2, is amended to read: 
The authority may not provide financing from proceeds of 
revenue obligation securities issued by the authority for any 
housing that is eligible for financing by the Maine State Housing 
Authority except with respect to property that the authority has 
acquired or may acquire on account or in anticipation of imminent 
or actual default under the me~~~a~e insurance program. 
Sec. 48. 10 MRSA §1044. sub-§9, as amended by PL 1985, c. 714, 
§3l, is further amended to read: 
9. 
Credit 
not 
pledged. 
Except 
as 
provided 
in 
this 
subsection, securities issued under this subchapter ssa±± do not 
constitute 
any 
debt 
or 
liability of 
the 
State 
or 
of 
any 
municipality therein or any political subdivision thereof, or of 
the authority or a pledge of the faith and credit of the State or 
of any such municipality or political subdivision, but ssa±±-ee 
~ 
payable solely from the revenues of the project or projects 
for which they are issued or from other eligible collateral or 
the revenues or proceeds of other eligible collateral pledged to 
the payment of the revenue obligation securities and all such 
securities ssa±± must contain on their face a statement to that 
effect. The issuance of securities under this subchapter ssa;!,;!, 
does 
not directly or indirectly or contingently obligate the 
State or any municipality or political subdivision to levy or to 
pledge any form of taxation whatever therefor or to make any 
appropriation for 
their payment. 
Under 
subchapter II 
~, 
the 
authority may insure 
me~~EJaEJe loans made with the proceeds of 
revenue obligation securities. 
To 
these ends, 
the faith 
and 
credit of the State may be pledged, under and consistent with the 
terms and limitations of the Constitution of Maine, Article IX, 
Section 14-A or 14-D, and such further limitations, if any, as 
may be provided by statute. 
Sec. 49. 10 MRSA §1048, 3rd~, as enacted by PL 1993, c. 741, 
§2, is amended to read: 
If, in connection with any outstanding revenue obligation 
securities issued under previous chapter 104, any predecessor to 
the authority financed or guaranteed more than 90 q" of the total 
value of a project, the authority, in connection with issuing its 
revenue 
refunding 
securities, 
may 
continue 
to 
finance 
or 
guarantee the corresponding percentage of the total value of the 
project 
financed 
or 
guaranteed 
by 
its 
predecessor, 
notwithstanding section ±G69-g 1026-A, subsection 6 
~, paragraph 
A, subparagraph (1). 
SUMMARY 
This bill simplifies the Finance Authority of Maine Act by 
clarifying definitions 
and 
consolidating 
the 
loan 
insurance 
sections of law. 
This bill also corrects cross-references.