Code of Maine Rules › 94 - INDEPENDENT AGENCIES › 457 - FINANCE AUTHORITY OF MAINE (FAME) › Chapter 107 - ELECTRIC RATE STABILIZATION PROJECT TAXABLE BOND PROGRAM › Section 457-107-11 - PREMIUMS, FEES AND OTHER CHARGES

Current through 2024-29, July 17, 2024
A. The Authority
				will be paid a commitment fee in accordance with the following schedule:
LOAN AMOUNT
FEE
Up to $7,000,000
1 % of the loan benefiting
							 from capital reserve fund security
Greater than $7,000,000 and less than $10,000,000
1 % of the first $7,000,000 of the loan benefiting from the capital
							 reserve fund security, plus up to 1 % of the portion of the loan above
							 $7,000,000
$10,000,000 or more
1 % of the first
							 $7,000,000 of the loan benefiting from the capital reserve fund security, plus
							 up to 5 % of the portion of the loan above $7,000,000.
The Authority may, in its discretion, provide that a portion
				  of the commitment fee is due upon execution of the financing commitment with
				  the remainder due at a later date specified in the financing commitment, any
				  such later date shall not be later than the date of issue of the bonds. Upon
				  funding of the loan benefiting from capital reserve fund security, the
				  commitment fee may in the discretion of the Authority, be applied in whole or
				  in part to the first year's capital reserve fund premium. In the event. that
				  the borrower elects not to participate in the program for mum other than the
				  Authority's breach of the financing commitment, the full amount of the fee may
				  be retained by the Authority as liquidated damages and/or for payment of the
				  Authority's time and expenses unless otherwise provided in the financing
				  commitment.
B. The
				Authority shall be paid an annual capital reserve fund premium not to exceed 2
				%, as determined by the Authority, of the outstanding balance of the portion of
				each loan benefitting from a capital reserve fund at the closing of the loan
				and on each anniversary date of the loan or such other date specified in the
				contract. The premium shall be paid in advance for such period as is specified
				in the contract or other documentation. In the case of a loan in excess of
				$10,000,000, the annual premium shall not exceed 1/2 of 1 %, as determined by
				the Authority.
C. The Authority may
				provide that it shall receive in lieu of annual capital reserve fund premium
				payments a one time payment upon execution of the capital reserve fund contract
				equal to the estimated present value of premiums scheduled to be due over the
				anticipated term of the loan.
D. In
				the event that bonds are issued for the program prior to the execution of the
				capital reserve contract, the Authority may require borrowers to pay the
				interest rate differential between the rate paid on the bonds and the rate
				achieved by investment of bond proceeds prior to the funding of the loan from
				bond proceeds.
E. A borrower shall
				reimburse the Authority for its out-of-pocket expenses in connection with
				processing an application for capital reserve fund security or with the capital
				reserve fund, including any fee payable in connection with servicing the loan,
				and all expenses in connection with the bond issue, including without
				limitation charges of counsel and costs of sale of bonds, copying, mailing,
				phone calls, advertising and travel.
F. Where application is made after issuance
				to obtain the Authority's and/or trustee's consent to transfer of collateral,
				if any, alteration of rights or other matters, the Authority may charge the
				borrower for the cost of the Authority's staff and trustee's staff utilized to
				review the application and for the Authority's and trustee's out-of-pocket
				expenses in connection with the application, including without limitation,
				charges of counsel.