Wyoming Administrative Code › Agency 004 - Treasurer's Office › Sub-Agency 0011 - Economic Development Large Project Program › Chapter 3 - ECONOMIC DEVELOPMENT LARGE PROJECT PROGRAM › Section 3-7 - Risk Analysis

Current through July 13, 2024
(a) Interest rate.
				The interest rate for any loan under this program shall be a minimum of one
				percent (1%). The interest rate shall be determined by considering applicable
				risk factors and the impact of the project.
(b) Subordinate financing. The loan or loan
				guarantee documents shall require that the State maintain a first priority lien
				on all collateral, and no subordinate financing may be placed on any collateral
				securing the loan or loan guarantee without the written consent of the State
				Treasurer.
(c) Insurance
				requirements. Insurance requirements shall vary based on the type of project
				which is the subject of the loan or loan guarantee but, at a minimum, general
				liability and property insurance shall be required in amounts and with terms
				that are acceptable to the State Treasurer naming the State as a lien holder.
				At the sole discretion of the State Treasurer, other types of insurance may be
				required based on the type of project being financed and/or the property which
				serves as collateral for the loan or loan guarantee, such as business
				interruption, flood, earthquake, etc.
(d) Financial covenants. The State Treasurer
				may require that the loan or loan guarantee documents include financial
				covenants with which the applicant must comply for the term of the loan or loan
				guarantee. Such covenants may include standards relating to debt service
				coverage, debt limitations, net worth, leverage, interest coverage or any other
				financial metrics determined by the State Treasurer necessary to insure the
				strength and performance of the applicant.
(e) Acceleration upon closure of facility or
				relocation outside the State. The loan documents may provide that, if the
				applicant should decide to close or downsize the facility or operation which is
				the subject of the project or relocate such facility or operation outside the
				State of Wyoming prior to maturity of the loan (or if the actions of the
				applicant indicate that applicant intends to so close, downsize or relocate the
				facility or operation) then, the outstanding balance of the loan shall be
				immediately due and payable including all interest accrued to the date of such
				payment and any and all fees and expenses due and owing. If the State has
				guaranteed financing pursuant to this large project program, the guarantee
				documents shall provide that the guarantee shall be null and void as of such
				decision to close, downsize or relocate the facility or operation (or as of the
				commencement of any actions indicating such a closure, downsize or
				relocation).
(f) Commencement of
				project. The documents shall require that the applicant commence construction
				of the project within one (1) year after closing of the loan or loan guarantee.
				If the applicant fails to commence construction within such time period, then
				the outstanding balance of the loan shall be immediately due and payable
				including all interest accrued to the date of such payment and any and all fees
				and expenses due and owing. If the State has guaranteed financing pursuant to
				this large project program, the guarantee documents shall provide that the
				guarantee shall be null and void after one (1) year if construction of the
				project has not commenced.
(g)
				Other covenants. The State Treasurer may include terms in the documents for the
				loan or loan guarantee to protect the State's interest, such as (1) escrow
				accounts, (2) cash sweeps, (3) pledge rights, (4) corporate approval rights,
				(5) acceleration rights for facility closure or downsizing, failure to meet job
				creation and tax base requirements and failure to continue to satisfy any
				requirements necessary to qualify for eligibility for the large project program
				and (6) other mechanisms the State Treasurer deems appropriate.
(h) Private funds. Prior to closing a loan or
				loan guarantee, an applicant must certify to the State Treasurer that the
				applicant has committed private funds in an amount which is at least three (3)
				times the requested loan or loan guarantee and that such private funds are
				being spent on buildings, equipment and direct project infrastructure. The
				State Treasurer, at his or her discretion, may require additional information,
				documentation, escrow of funds, implementation of processes and procedures or
				any other reasonable materials or terms, to evidence this commitment of private
				funds.
(i) Collateral. Based on the
				appraisals and information provided by the applicant for the collateral
				securing the loan or loan guarantee, the State Treasurer shall determine if
				such collateral is adequate based on the requirements of Sections 2(e)(i),
				2(e)(vi), and 2(e) (viii) of the Act. The State Treasurer shall secure a first
				security interest in the entire project which is the subject of the financing
				and must approve any subsequent financing which is to exist at the time of
				closing or which applicant enters into after closing of the loan or loan
				guarantee. If the applicant shows good cause why the applicant cannot grant the
				State a first security interest in the entire project, then the applicant must
				propose substitute collateral which the State Treasurer deems to be sufficient
				to repay the loan or loan guarantee in the case of a default and in which the
				State Treasurer's interest is before the interest of any and all other lenders
				in such substitute collateral (if such other lenders have been previously
				approved by the State Treasurer as provided in Section 7(b) above).
(j) Guarantees by affiliates. The State
				Treasurer may determine that upon examination and review of applicant's due
				diligence materials and the proposed collateral for the loan or loan guarantee,
				that additional collateral in the form of loan guarantees from affiliates of
				the applicant may be necessary to provide sufficient security to the State for
				repayment of the loan or loan guarantee.