Code of Maine Rules › 95 - INDEPENDENT AGENCIES › 648 - EFFICIENCY MAINE TRUST › Chapter 110 - PACE PROGRAM REGULATIONS: LOAN UNDERWRITING STANDARDS, CONSUMER DISCLOSURE REQUIREMENTS, TERMS AND CONDITIONS OF PARTICIPATION AND QUALITY ASSURANCE SYSTEM › Section 648-110-5 - TERMS AND CONDITIONS OF PARTICIPATION

Current through 2024-29, July 17, 2024
The following terms and conditions govern the participation
				  of Municipalities and Borrowers in a PACE Program funded by funds awarded to
				  the State under the federal Energy Efficiency and Conservation Block Grant
				  Program or by any other funds from the Trust for this purpose.
1.
PACE Program Design, Implementation
				and Administration.
A. PACE Program
				Design.
(1) Schedule Energy Audit. The
				proposed Borrower schedules an Energy Audit with a Participating Energy
				Advisor.
(2) Energy Audit. A
				Participating Energy Advisor conducts an Energy Audit, performing initial
				testing and generating reports regarding proposed Energy Savings Improvements,
				their cost, Estimated Useful Life and potential savings, and provides such
				reports, PACE Program information and PACE Loan application form to the
				proposed Borrower.
(3) Application.
				The proposed Borrower contacts the Master Provider in the manner designated by
				the Master Provider from time to time (which may include but is not limited to
				contact by telephone or online) to begin the application process, supplying
				sufficient information to enable the Master Provider to obtain the proposed
				Borrower's Credit Report and lien and debt information and to calculate the
				contemplated approximate PACE Loan terms. The Master Provider then will send a
				written notice to the Borrower:
(a) explaining
				what the proposed Borrower must provide in order to complete the application
				form, including a quote from a Registered Vendor to construct/install specified
				Energy Savings Improvements; and
(b) confirming the specific Energy Savings
				Improvements the proposed Borrower wishes to have constructed/installed and
				financed and the maximum PACE Loan amount, term, interest rate and rebate from
				the Trust potentially available with respect to such Energy Savings
				Improvements; and
(c) providing a
				Good Faith Estimate (GFE) of the costs related to the proposed PACE Loan in
				accordance with the Real Estate Settlement Procedures Act (RESPA); and
(d) asking the proposed Borrower
				to advise the Master Provider of the proposed Borrower's preference as to the
				term of the PACE Loan (five, ten or fifteen years, but not to exceed the
				average Estimated Useful Life of the Energy Savings Improvement(s)) and the
				name and location of the branch office of a participating bank or credit union
				to be used for closing or to make arrangements for an in-home closing.
				("Closing Agent").
(4)
				Application Review and Action. Upon receiving a completed PACE Loan application
				and the other requested materials from the Borrower, the Master Provider
				reviews the application and materials to determine within thirty (30) days
				whether the proposed Borrower meets the Underwriting Standards in Section 3 of
				this Rule.
(a) If the proposed PACE Loan is
				approved, the Master Provider prepares the PACE Agreement, which describes the
				Energy Savings Improvements and the terms of the PACE Loan, and the PACE
				Mortgage, using forms prepared by the Trust (collectively, the "PACE Loan
				Documents"). The Master Provider sends the PACE Loan Documents to the Closing
				Agent, and notifies the proposed Borrower and the Closing Agent as to how they
				should coordinate to select the date, time and location of closing which must
				occur within fourteen (14) days.
(b) If the proposed PACE Loan is not
				approved, the Master Provider shall send written notice of that fact, along
				with the reason(s) for the denial, to the proposed Borrower.
(5) Loan Origination- Initial
				Disbursement. At the Closing, the Borrower shall execute the PACE Loan
				Documents. After expiration of the rescission period described in 9A M.R.S.A.
				§ 8-204 the Trust or its agent issues a check or electronic payment to the
				Borrower in an amount equal to 30% of the PACE Loan Amount not to exceed
				$5,000.
(6) Establishment of PACE
				Mortgage. Within two (2) business days after the closing, the Closing Agent
				mails the signed PACE Agreement and PACE Mortgage to the Master Servicer, which
				promptly records the PACE Mortgage in the appropriate county registry of
				deeds.
(7)
				Construction/Installation of Energy Savings Improvements. The Registered Vendor
				constructs and/or installs the Energy Savings Improvements consistent with the
				Energy Audit.
(8) Loan Origination
				- Mid-project Disbursements. Upon receipt of notice from the Borrower that
				construction and/or installation of a major component of the Energy Savings
				Improvements is complete, the Trust or its agent may issue partial or total
				payment therefor, electronic or otherwise, up to the invoiced amount therefor,
				to the Borrower or, if directed by the Borrower, to the contractor providing
				such component.
(9) Loan
				Origination - Final Disbursement. Upon receipt of (i) notice from the
				Registered Vendor that construction and/or installation of the Energy Saving
				Improvement is complete; and (ii) notice from the Participating Energy Advisor
				that it has conducted a test-out procedure verifying that the construction
				and/or installation of the Energy Savings Improvements meets BPI guidelines and
				recommendations, the Trust or its agent shall issue payments, electronic or
				otherwise, to the the Borrower (or, if directed by the Borrower, to the
				contractor providing the Energy Saving Improvement) for the remaining amount of
				the PACE Loan.
(10) Loan Servicing.
				Unless the Trust has established an alternative arrangement with a Municipality
				administering the PACE Program under which the PACE Loan is established, the
				Master Servicer shall bill monthly PACE Assessments to the Borrower to be paid
				to the Master Servicer within thirty (30) days of each PACE Assessment invoice.
				Where the Borrower has failed to timely pay its monthly PACE Assessment, the
				Master Servicer shall send a notice of
mortgagor's right to cure in
				accordance with the provisions of 14 MRSA § 6111(1), 14 MRSA §
				6111(1-A)14 and MRSA § 6111(3)
. If a PACE Assessment remains
				unpaid for six (6) months after it becomes delinquent, the Master Servicer may
				institute collection proceedings through collection agencies and/or through
				institution of legal proceedings exclusive of foreclosure. Upon payment in full
				of the PACE Loan and all interest, costs, fees and other charges in connection
				with the PACE Loan, the Master Servicer, or the Municipality if it is
				administering its PACE Program, shall record a discharge of the PACE Mortgage
				at the appropriate registry of deeds.