Code of Maine Rules › 94 - INDEPENDENT AGENCIES › 457 - FINANCE AUTHORITY OF MAINE (FAME) › Chapter 204 - SECONDARY MARKET PROGRAM › Section 457-204-1 - Definitions

Current through 2024-29, July 17, 2024
A. Reference to Act Definitions. Certain
				terms used in this rule, which are defined in the Finance Authority of Maine
				Act,
				 10 M.R.S.A.
				§961 and following (the Act), shall have
				the meanings set forth in the Act, unless clearly specified otherwise or unless
				the context clearly indicates otherwise.
B. Defined Terms.
1. "Cap" means the maximum stated amount of
				liability of the Authority under any Program Document, stated as such, to any
				Holder.
2. "Certificate" means, as
				appropriate or as the context may require, the instrument evidencing ownership
				of an entire Guaranteed Portion or the instrument evidencing a fractional
				undivided ownership interest in a pool of Guaranteed Portions, each of which
				shall be an "insured certificate".
3. "Chief Executive Officer" means, the
				Authority's chief executive officer or a person acting under the supervisory
				control of the Chief Executive Officer.
4. "Eligible Loan" means a loan insured under
				the Authority's Mortgage Insurance Program ("Chapter 101") or Small Business
				and Veterans' Small Business Mortgage Insurance Programs ("Chapter 103'),
				except asset-based or revolving working capital loans or any other working
				capital loan which is not on regular amortization schedule for a period greater
				than one year
5. "Fiscal and
				Transfer Agent" or "FTA" means the Authority's agent in carrying out the
				central registration, initial settlement, and paying functions with respect to
(i) The Guaranteed Portions sold
				and
(ii) Certificates.
The FTA has the responsibility for issuing, on behalf of the
				  Authority, Certificates.
6. "Guaranteed Portion" means that portion of
				an Eligible Loan which has been insured by the Authority.
7. "Holder" is a person or organization other
				than the originating Lender who holds the Guaranteed Portion of an Eligible
				Loan with no servicing responsibilities. When a Lender assigns the Guaranteed
				Portion to an assignee, the assignee becomes a Holder only when a Program
				Document in substance and content acceptable to the Chief Executive Officer is
				executed.
8. "Lender" is the person
				or organization making and servicing an Eligible Loan. The Lender is also the
				party requesting insurance of an Eligible Loan.
9. "Loan Insurance Agreement" means the
				agreement between a Lender and the Authority to insure loans pursuant to the
				Small Business and Veterans' Small Business Mortgage Insurance Programs or to
				insure a specific loan pursuant to the Mortgage Insurance Program.
10. "Loan Insurance Authorization" means a
				letter from the Chief Executive Officer to a Lender agreeing to insure a loan
				to a Borrower on the terms and conditions and subject to the requirements
				stated therein.
11. "Loan Note
				Guarantee" means the agreement executed by the Chief Executive Officer setting
				forth the obligations of the Authority to the Holder of a Certificate
				evidencing either the Guaranteed Portion of an individual Eligible Loan or a
				fractional undivided interest in a specific pool of Guaranteed
				Portions.
12. "Program" means the
				Secondary Market Program governed by this rule and the Act.
13. "Program Documents" mean any and all
				instruments and documents acceptable in form and content to the Chief Executive
				Officer prepared for use in and to effectuate the Program.
14. "Secondary Market" means any Holder which
				acquires the insured portion of Eligible Loans insured by the Authority under
				Chapter 101 or Chapter 103, or both, and those portions of the Act pursuant to
				which those rules have been promulgated.
15. "Unguaranteed Portion" means that portion
				of an Eligible Loan which is not insured or guaranteed by the
				Authority.