Code of Maine Rules › 94 - INDEPENDENT AGENCIES › 457 - FINANCE AUTHORITY OF MAINE (FAME) › Chapter 325 - MAINE NEW MARKETS CAPITAL INVESTMENT PROGRAM (Amendment 3) › Section 457-325-1 - DEFINITIONS

Current through 2024-29, July 17, 2024
1. "Allocation Application" means the
				Authority's then current application for allocation of tax credit authority
				that is filed by a CDE with the Authority.
2. "Allocation Application fee" means a
				non-refundable fee of $1,000 that shall be included with the Allocation
				Application at the time of filing with the Authority.
3. "Annual Report fee" means a fee of $250
				that shall be included with the annual report required of a CDE as set forth
				below in Section
				6.
4. "Applicant" means a CDE that files an
				Allocation Application or Certification Application with the Authority as
				contemplated by
				10 M.R.S.A.
				§1100-Z.
5. "CDE" means a Qualified Community
				Development Entity as defined by this Rule, or a subsidiary thereof that is
				also a Qualified Community Development Entity as defined by this
				Rule.
6. "CDFI Fund" means the U.S.
				Department of Treasury, Community Development Financial Institutions
				Fund.
7. "Certification
				Application" means the Authority's current application for certification of a
				qualified equity investment in a CDE.
8. "Certification Application Fee" means a
				non-refundable fee of $2,500 that shall be included with a Certification
				Application at the time of filing with the Authority.
9. "Code" means the
United States
				Internal Revenue Code of 1986
, as amended.
10. "Commissioner" means the Maine
				Commissioner of Administrative and Financial Services.
11. "Credit allowance date" means, with
				respect to any qualified equity investment, the date on which the investment is
				initially made in the CDE, and each of the successive six anniversary dates of
				that date thereafter, provided the investment is certified by the Authority as
				required by this Rule.
12.
				"Long-term debt security" means any debt instrument issued by a CDE, at par
				value or a premium, with an original maturity date of at least seven years from
				the date of its issuance, with no acceleration of repayment, amortization or
				prepayment features prior to its original maturity date. The CDE that issues
				the debt instrument may not make cash interest payments on the debt instrument
				during the period commencing with its issuance and ending on its final credit
				allowance date in excess of the cumulative operating income (as defined in the
				regulations adopted pursuant to the Code, Section 45D ) of the CDE for the same
				period, prior to giving effect to interest expense on such debt instrument.
				This paragraph does not limit the holder's ability to accelerate payments on
				the debt instrument in situations when the CDE has defaulted on covenants
				designed to ensure compliance with
				10 M.R.S.A.
				§1100-Z;
				36
				M.R.S.A. §191(2)(SS);
				36
				M.R.S.A. §2351; or the Code, Section
				45D.
13. "Low-income community"
				has the same meaning as set forth in the Code, Section 45D.
14. "Non-metropolitan census tract" means a
				census tract located in a non-metropolitan county as defined by the CDFI
				Fund.
15. "Purchase price" means
				the amount of the investment in the CDE for the qualified equity
				investment.
16. "Qualified active
				low-income community business" or "QALICB" has the same meaning as set forth in
				the Code, Section 45D and regulations adopted thereunder, including 26 CFR Sec.
				1.45D -1, but shall also include an entity which, for the most recent calendar
				year ending prior to the date of investment by the CDE, can demonstrate that
				50% or more of its gross income was derived from business activities within,
				50% or more of its tangible property was located within; or 50% or more of its
				services were performed within, a community in a municipality that according to
				statistics published by the Maine Department of Labor, experienced an
				unemployment rate greater than the state average, during such period. To the
				extent statistics are not reported for such municipality by the Maine
				Department of Labor, the rates of the Labor Market Area in which such
				municipality is located shall apply.
17. "Qualified community development entity"
				has the same meaning as set forth in the Code, Section 45D, except that the
				entity must have entered into or be controlled by or under the common control
				of an entity that has entered into an allocation agreement with the CDFI Fund
				with respect to credits authorized by the Code, Section 45D, and must be
				authorized to operate in the State.
18. "Qualified equity investment" or "QEI"
				means any equity investment in, or long-term debt security issued by, a CDE
				that:
A. Has at least 85 percent of its cash purchase price
				used by the issuer to make qualified low-income community investments in
				qualified active low-income community businesses located in the State by the
				second anniversary of the initial credit allowance date;
B. Is acquired after December 31, 2011 at its
				original issuance solely in exchange for cash; and
C. Is designated by the issuer as a qualified
				equity investment and is certified by the Authority pursuant to
				10 M.R.S.A.
				§1100-Z(3)(G).
				"Qualified equity investment" includes any qualified equity investment that
				does not meet the provisions of
				10 M.R.S.A.
				§1100-Z(3)(G) if the
				investment was a qualified equity investment in the hands of a prior holder.
				The CDE shall keep sufficiently detailed books and records with respect to the
				investments made with the proceeds of the qualified equity investments to allow
				the direct tracing of the proceeds into qualified low-income community
				investments in qualified active low-income community businesses in the State.