Code of Maine Rules › 94 - INDEPENDENT AGENCIES › 457 - FINANCE AUTHORITY OF MAINE (FAME) › Chapter 305 - OIL STORAGE FACILITY AND TANK PROGRAM › Section 457-305-1 - 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.
				Section961 and following (the "Act"), shall
				have the meaning set forth in the Act unless clearly specified otherwise or
				unless the context clearly indicates otherwise.
B.
Defined Terms
.
1. "Aboveground Oil Storage Facility" or
				"Aboveground Facility" means any aboveground oil storage tank or tanks,
				together with associated piping, and transfer and dispensing facilities located
				over land or water of the State at a single location for more than four months
				per year that is used or intended to be used for the storage or supply of oil.
				Oil terminal facilities, as defined in
				 38 MRSA
				§542, sub §
										7, and propane facilities are not
				included in this definition.
2.
				"Aboveground Oil Storage Tank" or "Aboveground Tank" means any aboveground
				container, less than 10% of the capacity of which is beneath the surface of the
				ground, that is used or intended to be used for the storage or supply of oil.
				Included in this definition are any tanks situated upon or above the surface of
				a floor in such a manner that they may be readily inspected.
3. "Borrower" means a person or entity that
				meets the eligibility requirements set forth in Section
				3 of this rule, and includes a
				prospective borrower where the context requires. If the borrower is a real
				estate holding company or is a subsidiary or affiliate of or is related to an
				entity with 50% or more common ownership "borrower" shall include the parent,
				affiliated or related entity when determining eligibility, including the net
				worth and debt service coverage of the borrower.
4. "Chief Executive Officer" means the
				Authority's Chief Executive Officer or a person acting under the supervisory
				control of the Chief Executive Officer.
5. "Current Obligation(s)" means the portion
				of all outstanding debts including principal and interest owed by the borrower
				due within one year of the date of application, including payments on leases of
				real and personal property.
6.
				"Debt Service Coverage" means an amount equal to the quotient of a fraction,
				the numerator of which is the sum of the borrower's net income plus
				depreciation plus interest and the denominator of which is the sum of the
				borrower's current obligations, plus proposed payments of principal and
				interest. e.g. Debt Service Coverage =
Net Income + Depreciation +
				Interest
/ Current Obligations + Proposed Loan
				Obligations)
7. "Equipment Related
				to Air Quality Improvement" means any equipment which must be installed by a
				gasoline service station to comply with applicable laws and regulations
				regarding gasoline service station vapor control and petroleum liquids transfer
				vapor recovery pursuant to the requirements of applicable law.
8. "Gasoline Service Station" means a single
				location from which a) motor fuel is sold to the general public or b) motor
				fuel is distributed solely for the use of officers or employees or owners of
				the location. A gasoline service station does not include a location from which
				motor fuel is distributed only for later sale.
9. "Net Income" means net income as
				determined by generally accepted accounting principles, as applied by the
				Authority. The determination of the borrower's net income shall be based on the
				financial statements and tax return for the borrower's most recent fiscal year
				and interim financial statements as the Authority may require. The Authority
				may rely on financial statements and tax returns from previous fiscal years if,
				in the discretion of the Authority, they are necessary to make a determination
				of net income.
10. "Net Worth"
				means, in the case of an individual or sole proprietorship, the total value of
				the equity of the borrower, the borrower's spouse, and dependents in all real
				and personal property, excluding the borrower's principal residence. In the
				case of a corporation or a limited liability company, net worth shall be
				defined in accordance with generally accepted accounting principles and shall
				include the individual net worth of each stockholder or member owning 20% or
				more of the outstanding and issued stock or ownership units of the corporation
				or limited liability company. In the case of a partnership, net worth shall be
				defined in accordance with generally accepted accounting principles and shall
				include the individual net worth of each general partner. In the case of a
				trust, net worth shall be defined in accordance with generally accepted
				accounting principles and shall include the individual net worth of each
				beneficiary of 20% or more of the proceeds of the trust. In the case of a
				co-op, net worth shall be defined in accordance with generally accepted
				accounting principles and may include the individual net worth of major owners
				in the discretion of the Authority.
11. "Members" means the members of the
				Finance Authority of Maine.
12.
				"Program" means the Oil Storage Facility and Tank Program governed by the Act
				and this rule.
13. "Project" means
				a) the renovation, removal, disposal or replacement of all or any part of an
				eligible underground oil storage facility or tank, or b) the construction,
				replacement or renovation of an aboveground tank or aboveground facility, or c)
				or the installation of equipment related to the improvement of air
				quality.
14. "State" means the
				State of Maine.
15. "Underground Oil
				Storage Facility" or "Underground Facility" means any tank, together with
				associated piping and dispensing facilities, 10% or more of which is located
				beneath the surface of the ground and not on or above a floor in such a manner
				that it may be readily inspected, located at a single location and used,
				formerly used or intended to be used for the marketing and distribution of oil,
				petroleum products or their by-products to persons or entities other than the
				owner of the facility.
16.
				"Underground Oil Storage Tank", or "Underground Tank" means any tank, together
				with associated piping, 10% or more of which is located beneath the surface of
				the ground and not on or above a floor in such a manner that it may be readily
				inspected, located at a single location and used, formerly used or intended to
				be used for consumption by the owner or user of the tank on the
				premises.