New Jersey Administrative Code › Title 19 - OTHER AGENCIES › NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY › Chapter 31V - ASPIRE PROGRAM RULES › Subchapter 1 - ASPIRE › Section 19:31V-1.13 - Assignment of rights of incentive award agreement

Current through Register Vol. 56, No. 14, July 15, 2024
(a) A developer who has entered into an
				  incentive award agreement pursuant to
				  N.J.S.A.
				  34:1B-328 may, upon notice to and written
				  consent of the Authority and State Treasurer, pledge, assign, transfer, or sell
				  any or all of its right, title, and interest in, and to, the incentive award
				  agreement and in the incentive awards payable pursuant to the incentive award
				  agreement, and the right to receive the incentive awards, along with the rights
				  and remedies provided to the developer pursuant to the incentive award
				  agreement, provided that any sale, assignment, or transfer of the incentive
				  award agreement shall be to the purchaser, assignee, or transferee of the
				  redevelopment project. To decide whether to consent, the Authority and State
				  Treasurer will consider the purchase price and terms of the pledge, assignment,
				  transfer, or sale, the allocation of the purchase price to the tax credit in
				  relation to the minimum required pursuant to N.J.A.C. 19:31V-1.12(b), and the
				  impact of the transaction to the reasonable and appropriate return on
				  investment for the seller(s) and the purchaser. Any assignment shall be an
				  absolute assignment for all purposes, including the Federal bankruptcy code. If
				  the Authority approval included a co-applicant, prior to requesting the consent
				  of the Authority and State Treasurer, the developer shall obtain, in writing,
				  the co-applicant's consent, and the developer shall provide the co-applicant's
				  written consent to the Authority and State Treasurer with the developer's
				  notice.
(b) A co-applicant who has
				  entered into an incentive award agreement pursuant to
				  N.J.S.A.
				  34:1B-328 may, upon notice to and written
				  consent of the Authority and State Treasurer, assign, transfer, or sell any or
				  all of its right, title, and interest in, and to, the incentive award agreement
				  and in the incentive awards payable pursuant to the incentive award agreement,
				  and the right to receive the incentive awards, along with the rights and
				  remedies provided to the co-applicant pursuant to the incentive award
				  agreement, provided that the purchaser shall be a non-profit pursuant to
				  section 501(c)3 of the Internal Revenue Code. To decide whether to consent, the
				  Authority and State Treasurer will consider the contributions of the
				  co-applicant, the proposed contributions by the purchaser, the purchase price
				  and terms of the assignment, transfer, or sale, and the allocation of the
				  purchase price to the tax credit. The new purchaser shall be the co-applicant
				  and shall be required to receive an assignment of the co-applicant's
				  participation agreement or to execute a new participation agreement with the
				  developer. Any assignment shall be an absolute assignment for all purposes,
				  including the Federal bankruptcy code. Prior to requesting the consent of the
				  Authority and State Treasurer, the co-applicant shall obtain, in writing, the
				  developer's consent, and the co-applicant shall provide the developer's written
				  consent to the Authority and State Treasurer with the co-applicant's
				  notice.
(c) Any pledge of an
				  incentive award made by the developer shall be valid and binding from the time
				  the pledge is made and filed in the records of the Authority. The incentive
				  award pledged and thereafter received by the developer shall immediately be
				  subject to the lien of the pledge without any physical delivery thereof or
				  further act, and the lien of any pledge shall be valid and binding against all
				  parties having claims of any kind, in tort, contract, or otherwise against the
				  developer irrespective of whether the parties have notice thereof. As a
				  condition of any incentive grant, the grantee, assignee, pledgee, or subsequent
				  holder of the incentive grant shall immediately file notice of the same with
				  the clerk of the county in which the project is located.
(d) The Authority shall publish, on its
				  internet website, the following information concerning each pledge, assignment,
				  transfer, or sale approved by the Authority pursuant to this section:
1. The name of the person or entity offering
				  the pledge, assignment, transfer, or sale of a right, title, or interest in an
				  incentive grant agreement or tax credit agreement;
2. The name of the person or entity receiving
				  the pledge, assignment, transfer, or sale of a right, title, or interest in the
				  incentive grant agreement or tax credit agreement;
3. The value of the right, title, or interest
				  in the incentive grant agreement or tax credit agreement; and
4. The consideration received by the person
				  or entity offering the pledge, assignment, transfer, or sale of the right,
				  title, or interest in the incentive grant agreement or tax credit
				  agreement.