Current through Register Vol. 54, No. 45, November 9, 2024
Section 106.4 - Ineligible activitiesProjects are not eligible if they relate to any of the following activities:
(1) Refinancing any portion of the total project cost, except for short-term "bridge" financing when the bridge financing is being promptly replaced by the proceeds of the loan and the bridge financing has been disclosed to the Department and the ALO in connection with its review of the loan and approved by the ALO or local service provider.(2) Speculation in any type of property, real or personal.(3) Providing funds, directly or indirectly, for payment, whether as loan repayment, dividend distribution, return of capital, loans, or otherwise, to owners, partners or shareholders of the aquaculture enterprise, except as ordinary compensation for services rendered.(4) Related party transactions, that is, costs associated with a transaction when the buyer and the seller are one and the same or are related to each other by blood, marriage or law.(5) Projects that have commenced, or to which the borrower has committed, before receiving approval of the APDP loan, unless the borrower has received non-prejudicial approval to commence.(6) Loans may not be made for the purpose of investing in interest bearing accounts, certificates of deposit or other investments not related to the objectives of the APDP funds.(7) Loans may not be used to acquire an equity position in a private business.(8) Loans may not be used to subsidize interest payments on an existing loan.(9) Loans may not be used to provide the equity contribution required of borrowers under other State or Federal programs.(10) Loans may not be used to enable the borrower to acquire an interest in a business, either through purchase of stock or assets.