Administrative Rules of Montana › Department 8 - COMMERCE › Chapter 8.97 - BOARD OF INVESTMENTS › Subchapter 8.97.17 - Economic Development Bond Program › Rule 8.97.1707 - APPLICATION PROCEDURES AND PUBLIC HEARING REQUIREMENTS

Current through Register Vol. 13, July 5, 2024
(1) A business enterprise may apply for
				financing under the economic development bond programs by submitting a loan
				application to the board which will review project eligibility and the proposed
				use of the money.
(2) For moral
				obligation bonds, the financial institution shall submit a complete loan
				application on a form provided by the board. The application shall be properly
				signed and certified by the borrower and the financial institution. An
				application signed by the financial institution shall constitute a commitment
				by the financial institution to originate the loan or participate in the
				financing (if such participation is required) , in the manner set forth in the
				application. The board shall review the complete application with bond counsel
				to determine whether the project meets the requirements of these rules and the
				regulations of the Internal Revenue Code.
(3) If the applicant has applied for bond
				financing which is subject to federal tax exemption and the project appears
				eligible, the board shall notify the governing body of the local government in
				which the project is located of the pending application for financing and of
				the local government's right to conduct a public hearing on the project for the
				purpose of determining whether the project is in the public interest. The local
				government shall notify the board within fourteen days after receipt of
				notification of the pending application of whether the local government intends
				to conduct the public hearing.
(4)
				If the local government elects to conduct the public hearing, the board and
				local government shall determine the date for the public hearing and the board
				shall publish notice of the public hearing pursuant to the requirements of
				17-5-1526(4) and
				17-5-1527(4),
				MCA. If the local government, after the public hearing, determines that the
				project is in the public interest, it shall adopt a resolution which makes
				appropriate findings of public interest with respect thereto. The local
				government must notify the board within fourteen days of the public hearing of
				its findings and provide the board with a copy of the resolution. The board,
				upon notification that the local government has determined that the project is
				in the public interest, may issue an inducement resolution.
(5) If the local government declines to
				conduct the public hearing or fails to notify the board of its intention to
				conduct the hearing within fourteen days, the board shall hold a public hearing
				on the project for the purpose of determining whether the project is in the
				public interest. If the local government fails to notify the board of its
				determination of public interest within fourteen days of the hearing, the board
				may hold a public hearing on the project for the purpose of determining whether
				the project is in the public interest. At the conclusion of the public hearing,
				the board may issue its inducement resolution for the project.
(6) If the board determines that time is of
				the essence to an applicant applying for financing from federally tax-exempt
				bonds, the board may adopt a preliminary inducement resolution after an
				application has been submitted in accordance with 8.97.1706 terms and
				conditions deemed necessary by the board.
(7) Upon receipt of the local government's
				determination or upon its own determination that the project is in the public
				interest, the board may adopt an inducement resolution. This inducement
				resolution shall only constitute an expression of present intention of the
				board with respect to the project and shall not constitute a binding commitment
				on the part of the board that its bonds or notes will be issued for the
				project. This resolution expires one year from its date of adoption.
(8) After the board has approved an
				application for financing with federally tax-exempt bonds, but before the board
				issues such bonds, a project description shall be submitted to the governor.
				The governor shall, in writing, approve the project and certify that the
				required public hearing was conducted in compliance with the Internal Revenue
				Code.
(9) After an application has
				been approved by the board, the board may issue a conditional
				commitment.
AUTH:
					 17-5-1504,
					 17-5-1521, MCA IMP:
					 17-5-1504,
					 17-5-1521,
					 17-5-1526,
					 17-5-1527,
					 MCA