CHAPTER III

ECONOMIC DEVELOPMENT PROJECTS

  Section I. Adoption of Rules and Regulations. These Rules and Regulations are adopted pursuant to W.S. 9-7-105.

  Section 2. Purpose and Objectives. These Rules and Regulations are established to effectuate, and shall be applied so as to accomplish the economic development purposes of the Wyoming Community Development Authority Act, as amended. W.s. 9-7-101 through 9-7-124 (the "Act").

  Section 3. Definitions. As used in these Rules and Regulations, terms defined in the Act have the meanings set forth therein, and unless the context otherwise requires:

  (a) "Application" means the completed application for economic development bond financing.

  (b) "Authority" means the Wyoming Community Development Authority.

  (c) "Borrower" means the person, partnership, corporation or any other ,entity to whom or to which the proposed loan will be made.

  (d) "Credit Enhancement Arrangement" means a letter of credit, line of credit agreement, insurance or guarantee issued by one or more lenders or by public or private insurers or guarantors including the Authority's insurance fund created under W.S. 9-7-123 that provides credit insurance for a loan for an economic development project.

  (e) "Executive Director" means the Executive Director of the Wyoming Community Development Authority.

  (f) "Lender" means the mortgage lender that will originate a loan for an economic development project and sell the same to the Authority.

  (g) "Project" means an economic development project as defined in W.S. 9-7-103(a) (iv).

  Section 4, Description of the Program. The Authority is authorized under the Act to issue bonds and to use the proceeds to purchase loans from Lenders for Projects located in the State of Wyoming.The bonds are payable solely from loan repayments and one or more Credit Enhancement Arrangements.

  Section 5. Information on the Program. Information on the Authority's economic development project financing program and application forms may be obtained from the Executive Director of the Au- thority.

  Section 6. Application Procedure. An Application for economic development Project financing shall be submitted on the Application form approved and provided by the Authority. The application shall be properly signed by the Borrower and the Lender and accompanied by the non-refundable application fee. An Application signed by the Lender shall constitute a commitment by the Lender to originate the loan subject to such conditions as may be expressed, and may include a commitment to enter into a Credit Enhancement Arrangement for the loan.

  Section 7. Non-refundable Application Fee. The applicant shall submit with the Application a non-refundable application fee in the amount of $1,000.

  Section 8. Review of the Application by the Authority. The Executive Director of the Authority shall review the Application to determine whether it is complete, and whether there is any apparent reason why the Borrower and the Project would not be eligible for financing.

  Section 9. Letter from Local Governing Body. The Borrower shall request the local governing body of the city, town, or county in which the Project will be located to provide the Authority with letter stating that it has no objection to the financing of the Project with economic development bond financing. The Borrower shall request the City Council, Town Council, or Board of County Commissioners, as the case may be, to establish a time for a joint public hearing on the statutory findings set forth in ‘~.S.9-7-122. The Authority will arrange for publication of a Notice of Hearing in a local newspaper and in a newspaper published statewide. The notices need be published no fewer than 14 days before the hearing.

  Section 10. Contents of the Notice of Hearing. The Notice of Hearing shall contain the following information:

 .1a) The name of the local governing body conducting the hearing.

  (b) The date and time of the hearing.

  (c) The address and location of the hearing room.

  (d) The name of the applicant.

  (e) A description of the Project.

  (f) The name and style under which the facility will be operated.

  (g) The developer, operator, and manager of ‘the project.

  (h) The location of the project.

  (i) The address of the project.

  (j) The maximum aggregate face amount of obligations to be issued with respect to the project,.

  Section 11. Conduct of the Joint Public Hearing. A representative of the Applicant must appear at the public hearing to present testimony on the issues before the hearing. The Executive Director or other persons designated by the Authority are are hereby designated as hearing officers charged with the responsibility for attending the joint public hearing and reporting back to the Board of Directors of the Authority on the statutory findings and the resolution, if any, adopted by the local governing body of the City, Town, or County stating the statutory findings. The hearing shall be recorded and any interested firm may obtain a transcript upon payment of the cost of preparing the same.

  Section l2. Adoption of the Local Governing Body's Findings; Preliminary Approval. If the local governing body adopts a resolution granting approval of the financing of the Project and making the statutory findings, the Board of Directors of the Authority shall meet to consider the report of the joint public hearing and the resolution. A representative of the Applicant may appear at the meeting at which the Authority considers the resolution adopted by the local governing body. The Board of Direc- tors of the Authority shall determine whether or not to adopt the findings of the City Council, Town Council, or Board of County Commissioners. If the Board of Directors of the Authority adopts the findings of the local governing body, it shall state those in a resolution of the Authority preliminarily approving of financing for the Project.

Section 13. Approval of Credit by the Lender. The Borrower shall furnish the Lender the following information, as applicable: credit report, current financial statements, appraisal, costs figures, lease information, business history, business income, proforma statement, purchase agreements, and any other information as requested. If the Lender approves the credit, it shall forward its approval of credit to the Authority together with its conditional commitment to participate in the financing of the Project.

Section 14. Credit Enhancement Arrangements. The Borrrower shall obtain Credit Enhancement Arrangements covering the primary risk on the loan. In addition, the Authority may arrange for secondary insurance, guarantee or other Credit Enhancement Arrangements in which event the primary Credit Enhancement Arrangements must meet the requirements of the providers of the secondary Credit Enhancement Arrangements.

  Section 15. Insurance Fund. The Authority may commit the insurance fund created under W.S.9-7-123 to provide primary or secondary Credit Enhancement Arrangements to the extent that comparable arrangements are not available from private sources.

Section 16. Terms of Loans: Cost of Issuance. The interest rate and terms of the loan to the Borrower will be determined based upon the interest rate and term' of the bonds issued by the Authority to finance the project, including an interest rate differential to cover costs of administering the economic development program. The Borrower shall bear direct costs of issuance, including but not limited to underwriting discounts, counsel fees, an,d printing expense.

Section 17. Approval of the Governor. The Authority must obtain the approval of the Governor prior to issuing any bonds to finance a project.

Section 18. Issuance of the Bonds. When the Authority determines that it is prepared to consider a bond resolution, documents shall be prepared, a bond resolution adopted, the bonds sold, and the loan closed.

Section 19. Confidentiality of Information. Unless otherwise required by law, the Au- thority shall treat as confidential all information submitted by a Lender and Borrower except the following information:

  (a) name and address of Borrower;

  (b) name and address of Lender;

  (c) short description of the Project;

  (d) location of the Project;

  (e) amount of the proposed loan;

  (f) any other information which the Borrower has consented to disclose to the public.

  Section 20. False or Misleading Statement. Any person who purposely and knowingly makes a false or deceptive statement in an Application or purposely or knowingly omits information necessary to prevent the statements in an Application from being misleading, may be prosecuted under W.S. 9-7- 121. The submission of false, misleading, or deceptive information in any Application shall be grounds for rejection of the Application.