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Delaware General AssemblyDelaware RegulationsMonthly Register of RegulationsJuly 2013

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Pursuant to 29 Del.C. §5053(k), The Delaware Economic Development Authority (the "Authority") is directed to prescribe such regulations as may be necessary to carry out the purposes of act creating the Authority, 29 Del.C. Subch. IV (the "Act"). The purpose of Regulation 401 is to regulate the administration of the Act, including, but not limited to, regulation of the process for applying to the Authority for the issuance of conduit bonds and the Authority's approval of such applications. The proposed regulations constitute a revision of the existing Regulation 401, to update fees and current practices. The requirements of the amended Regulation 401 best serve the interests of the public in that they reflect the actual process for processing and approving an application for conduit bond financing.
Pursuant to 29 Del.C. §5029(a), The Delaware Economic Development Authority (the "Authority") is directed to prescribe such regulations as may be necessary to carry out the purposes of the Council on Development Finance (the "Council".) The proposed regulations constitute a revision of the existing Regulation 403, to reflect current practices. The requirements of the amended Regulation 403 best serve the interests of the public in that they reflect the actual practices regarding the administration and operation of the Council.
IT IS SO ORDERED this 30th day of May, 2013.
Pursuant to 29 Del.C. §5053(k), The Delaware Economic Development Authority (the "Authority") is directed to prescribe such regulations as may be necessary to carry out the purposes of the act creating the Authority, 29 Del.C. Subch. IV (the "Act"). The following regulations have been adopted by the Authority pursuant to the foregoing provision of the Act.
The purpose of this Regulation No. 2 is to regulate the administration of the Act, including, but not limited to, regulation of the process for applying to the Authority for the issuance of Bonds and the Authority's approval of such applications.
7.1.1 Draft closing documents should be forwarded to the Authority's special counsel Deputy Attorney General for review by bond counsel not less fewer than thirty (30) days prior to the anticipated closing date.
7.5 Liability Insurance and Indemnity. Prior to the issuance of a Bond by the Authority, the Assisted Person shall establish to the satisfaction of the Authority that (1) adequate liability insurance has been obtained to protect the Authority with respect to the Project during the period of time the Bond will be outstanding, and (2) adequate indemnity of the Authority has been provided against claims or losses resulting from the authorization and issuance of the Bond, or the refinancing of a Bond with respect to the Project.
8.2 Approval Fee. After initial approval of a Project, the applicant shall forthwith deposit Five Thousand Dollars ($5,000) with the Authority. If a Bond is issued for the Project, the Assisted Person shall pay to the Authority on the day the Bond is issued any additional amount which, together with the Five Thousand Dollars ($5,000) previously deposited with the Authority, will equal An amount equal to one-half percent (.50%) of the face amount of Bonds to be issued up to the first oOne Hundred Fifty Million Dollars ($150,000,000) face amount of Bonds shall be payable to the Authority on the day the Bond is issued. If the face amount of Bonds to be issued exceeds One Hundred Fifty Million Dollars ($150,000,000), the Assisted Person shall pay to the Authority on the day the Bonds are issued any additional amount which, together with the Five Thousand Dollars ($5,000) previously deposited with the Authority, will equal the sum of one-half percent (.50%) of the first One Hundred Fifty Million Dollars ($150,000,000) face amount of Bonds to be issued and An amount equal to one-quarter percent (.25%) of the face, amount of Bonds to be issued in excess of One Hundred Fifty Million Dollars ($150,000,000) shall be payable on the day the Bond is issued. If a Bond is not issued for a proposed Project, the applicant can request a return of the deposit, the balance of which will be refunded after the Authority has deducted its reasonable expenses, determined in the Authority's sole discretion.
8.3 Administration Fees. During the period of time a Bond is outstanding, administration fees of Thirty-Five Dollars ($35) per hour for any work performed in connection with a Project will be charged by the Authority to each Assisted Person. The Authority expects that such fFees will shall be at least Four Hundred Dollars ($400) per year, and may charge an annual administration fee based on this assumption or such other annual fee as the Authority, in its sole discretion, expects to approximate increase, at the Authority’s sole discretion, to reflect the Authority's annual administration expenses in connection with a Project.
Chairperson” means the Chairperson of the Council.
"Clawback" means an obligation by a grantee to repay a part or all of a grant for a failure to meet benchmark employment, cessation of operations in the State, or other terms contained in the grant agreement.
Competitiveness Fund” shall have the meaning given pursuant to 75 Del. Laws, c. 308, §36(d) (July 1, 2004), 75 Del. Laws, c. 98, §39(d) (July 1, 2005), and 75 Del. Laws, c. 353, §40(d) (July 1, 2006).
Council” means the Council on Development Finance.
DEDA” means The Delaware Economic Development Authority.
DEDO” means the Delaware Economic Development Office.
Director” means the Director of DEDO in his or her capacity as Director, or as the Chairperson of DEDA.
Member or Members” means the Members appointed to serve on the Council in accordance with 29 Del.C. §5007.
Project or Projects” shall have the meaning given pursuant to 29 Del.C. §5052(12).
Strategic Fund” shall have the meaning given pursuant to 29 Del.C. §§50217 – 5029.
Substantive Changes” means
a. a 10% or lower decrease of more than 1 percentage point in the interest rate for any fixed or variable rate loan made by DEDO or DEDA;
b. any changes in the collateral of a loan which would cause result in a decrease in the security position of DEDO or DEDA; and
Pursuant to 29 Del.C. §5003, DEDO was established pursuant to 29 Del.C. §5003. Pursuant to 29 Del.C. §5007 The Council was established pursuant to 29 Del.C. §5007. Pursuant to 29 Del.C. §5053 DEDA was established pursuant to 29 Del.C. §5053. DEDO and DEDA have authority to make regulations pursuant to 29 Del.C. §§5005(11) and 5053(k).
4.32 The Council will, consistent with the provisions of 29 Del.C. §§10001 - 10005 Ch. 100 and 8 DE Admin. C. 1500, make certain information contained in a company’s application available to the public upon written request.
4.43 The Council will, when practicable, schedule and locate meetings of the Council in a way that achieves geographic balance and centrality.
4.54 Any Ssubstantive Cchanges made to any agreement or contract excluding any agreement contract or associated document related to any conduit bond issued by DEDA, after initial review by the Council shall be resubmitted to the Council for additional review and recommendation.
4.65 DEDO will organize and provide orientation for all new Council Members and will organize and provide an annual retreat for all Council Members. The orientation will include:
4.86 The Council will, consistent with the State Employees’, Officers’ and Officials Code of Conduct, 29 Del.C. §§5804, 5805 and 5806, Ch. 58, encourage Members to identify prospective companies and to turn any information directly over to the Council staff for follow up business development opportunities to DEDO.
4.97 DEDO shall present an annual operating budget report to Tthe Council will, once a year, cooperate with the staff of DEDO in matters relating to DEDO’s strategic marketing plan, including the annual review of the plan for comment and review.
4.118 Any public disclosure of funding by DEDO, prior to approval by Tthe Council requires that: i) DEDO make no announcement regarding the awarding of any funding prior to review by the Council and approval by the Director; or ii) that any announcement regarding the awarding of any funding, when the matter is under DEDO control, include that the by DEDO shall include a disclaimer which indicates that such funding is subject to review and recommendation of the Council.
4.129 Twice a year, DEDO staff will bring shall provide an annual Portfolio Report to the Council for review:, which shall include, but not be limited to, compliance with benchmark employment levels percents above sustainable wages, company investments and the repayment status for outstanding loans made by DEDO and repayment status for outstanding loans made by DEDA.
4.1310 Projects with approvals that are more than two years old without an executed agreement will be brought to the Council’s attention. Council shall review any Strategic Fund loan or grant in which the applicant has not entered into a contract with DEDA within one year of approval.
4.1511 DEDO staff will provide reports information to the Council on return on investment, gross State product and personal income tax data related to each Project where such information is used to determine the value of the Project in the Application Evaluation Report.
4.1612 DEDO will continue to inform shall present biannual Strategic Fund cash management reports to the Council biannually on the fiscal status of all Projects including the which shall include, but not be limited to total Strategic fFunds available, balances, amounts encumbered (and corresponding dates of encumbrances), Strategic funds committed to future Projects and available Strategic Fund balances.
Last Updated: December 31 1969 19:00:00.
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