New Jersey Administrative Code › Title 19 - OTHER AGENCIES › NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY › Chapter 31AA - FOOD DESERT RELIEF TAX CREDIT PROGRAM › Subchapter 1 - FOOD DESERT RELIEF TAX CREDIT PROGRAM › Section 19:31AA-1.12 - Assignment of rights of incentive award agreement

Current through Register Vol. 56, No. 14, July 15, 2024
(a) An applicant who has entered into an
				  incentive award agreement 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 award payable pursuant to the incentive award agreement, and the
				  right to receive the incentive award, along with the rights and remedies
				  provided to the applicant pursuant to the incentive award agreement. 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; 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 applicant shall obtain, in writing, the co-applicant's
				  consent, and the applicant shall provide the co-applicant's written consent to
				  the Authority and State Treasurer with the applicant's notice.
(b) A co-applicant who has entered into an
				  incentive award agreement 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 award payable pursuant to the incentive award agreement, and the
				  right to receive the incentive award, 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 applicant. 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 applicant's consent, and the
				  co-applicant shall provide the applicant'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 applicant 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 applicant 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 taxpayer 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 award 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 award agreement;
3. The
				  value of the right, title, or interest in the incentive award 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 award
				  agreement.