870 R.I. Code R. 870-RICR-20-00-2.13

Current through December 3, 2024

Section 870-RICR-20-00-2.13 - Financing Agreement

A. Upon approval of First Wave Financing for an Applicant by the Board, the Corporation and the Application will enter into a Financing Agreement prior to the issuance of any First Wave Financing to the Applicant.

B. In order to safeguard the expenditure of public funds and ensure that the disbursement of funds further the objectives of the Act, the Financing Agreement shall include, among others, the following terms:

1. the maximum amount of First Wave Financing awarded;

2. the timing of the disbursement of the First Wave Financing;

3. a provision delineating the permissible uses of the First Wave Financing provided;

4. reasonable evidence that the Applicant is in good standing with the Division of Taxation at the time of execution of the Financing Agreement, meaning that the:

a. the Applicant is current on all outstanding filings and declared tax liabilities subject to audit;

b. the Applicant and the Division of Taxation have a workout payment agreement or other settlement with respect to any known delinquent tax liability and the Applicant is current on that workout payment agreement or settlement; or

c. the Applicant has timely commenced or is engaged in an administrative or judicial proceeding concerning a tax liability the status of which would otherwise preclude the issuance of a letter of good standing from the Division of Taxation;

5. events of default and remedies including events, if any, that would trigger forfeiture, revocation and/or repayment of the First Wave Financing provided;

6. indemnification, insurance and other customary protective requirements;

7. reporting requirements including, but not limited to, any requirements under the Act;

8. the imposition of such restrictions or covenants upon the Project as may be necessary, in the Corporation's sole determination, to ensure continued compliance with the Act, the Rules, and any terms and conditions on the provision of First Wave Financing that the Corporation deems appropriate;

9. at the Corporation's discretion, a provision requiring the Applicant to pay the Corporation's reasonable attorneys' fees incurred in connection with the negotiation, execution and enforcement of the Financing Agreement; and

10. any other provisions the Corporation deems appropriate.

870 R.I. Code R. 870-RICR-20-00-2.13