An Act To Improve Access to Capital
Maine Legislature, Session 127, LD 0672
Committee: Labor, Commerce, Research and Economic Development
Sponsors: HERBIG, VOLK, AUSTIN, CAMPBELL, FECTEAU, GILBERT, MASTRACCIO, WARD, PATRICK
Amends: 10 MRSA §1026-A

Legislative Document 
No. 672 
H.P. 453 
House of Representatives, March 3, 2015 
An Act To Improve Access to Capital 
Submitted by the Finance Authority of Maine pursuant to Joint Rule 204. 
Reference to the Committee on Labor, Commerce, Research and Economic Development 
suggested and ordered printed. 
ROBERT B. HUNT 
Clerk 
Presented by Representative HERBIG of Belfast. 
Cosponsored by Senator VOLK of Cumberland and 
Representatives: AUSTIN of Gray, CAMPBELL of Newfield, FECTEAU of Biddeford, 
GILBERT of Jay, MASTRACCIO of Sanford, WARD of Dedham, Senator: PATRICK of 
Oxford. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  10 MRSA §1026-A, sub-§1, as amended by PL 2009, c. 124, §3, is 
further amended to read: 
1.  Insurance.  The authority may make commitments and agreements to insure loan 
payments. Any loan insurance must be subject to the following:  
A.  Loan insurance may not exceed: 
(1)  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 quality pursuant to 
requirements for gasoline service station vapor control and petroleum liquids 
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 and sustainable biofuel 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)  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; 
B.  The loan must be serviced as required by the authority; 
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 $10,000,000. 
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. 
Sec. 2.  Funds deposited.  Funds appropriated or allocated pursuant to this Act 
must be deposited in the Finance Authority of Maine Loan Insurance Reserve Fund set 
forth pursuant to the Maine Revised Statutes, Title 10, section 1023-C. 
Sec. 3.  Contingent effective date.  This Act takes effect only upon the receipt by 
the Finance Authority of Maine Loan Insurance Reserve Fund of an appropriation, 
allocation or other funding source in the amount of at least $37,000,000. 
SUMMARY 
This bill, which takes effect only upon the receipt by the Finance Authority of Maine 
Loan Insurance Reserve Fund of an appropriation, general obligation bond funding or 
other funding in the amount of at least $37,000,000, increases the maximum loan 
insurance amount available through the Finance Authority of Maine from $7,000,000 to 
$10,000,000.