 |
Oklahoma Administrative Code (Last Updated: March 11, 2021) |
 |
TITLE 200. Oklahoma Development Finance Authority |
|
Chapter 10. Administration of Credit Enhancement Reserve Fund |
|
Subchapter 7. Insurance Commitment Amounts, Premiums and Security |
SECTION 200:10-7-5. Insurance to value
Latest version.
- The amount of the Insurance commitment will be determined by the credit evaluation, by the exposure of the Fund and by specific program guidelines as may be developed pursuant to 200:10-5-8. In no event will the maximum amount of the Insurance Commitment exceed the limits set forth in this Section except for obligations exempted under the Quality Jobs Investment Program.(1) Private sector. The maximum amount of the Insurance Commitment in enhancing private sector financing or refinancing of facilities will be limited as set forth in this Section.(A) Real property. For costs of financing or refinancing real property, including soft costs associated with the construction or development of the facilities and the Insurance premium, the amount of the Insurance Commitment will not exceed ninety percent (90%) of the lower of:(i) the actual certified and documented costs of such Project; or,(ii) the appraised (as built) fair market value of the real property as indicated in an independent appraisal by an MAI appraiser or such other independent appraiser as is acceptable to the Administrator.(B) Personal property. For costs of financing the acquisition of personal property, e. g., machinery and equipment, the amount of the Insurance Commitment will not exceed seventy-five percent (75%) of the actual certified or documented installation cost, including the expense of delivery, refurbishing and installation. The Fund may require an independent appraisal in connection with establishing a fair market value for such personal property and in such case, the amount of the Fund commitment may not exceed seventy-five percent (75%) of the lower of:(i) the fair market value of such personal property; or(ii) its documented installed cost.(C) Current assets and other personal property. Insurance Commitments, or portions thereof, secured by accounts receivable, inventory, other current assets and other personal property will not exceed fifty percent (50%) of the value of the collateral as determined by the Administrator or its designee.(D) Cash or cash equivalents and eligible investment securities. Insurance Commitments, or portions thereof, secured by cash or cash equivalents or by Eligible Investment Securities will not exceed one hundred percent (100%) of their market value.(E) Project completion. All improvements in private sector financing shall be complete prior to the issuance of insurance. Project completion shall be determined by the Authority's Executive Officers upon recommendation of the Credit Officer.(F) Other requirements. Funds invested by the Authority pursuant to the Quality Jobs Investment Program shall be matched, at least, equally by private sector investments. The private sector investments shall be at risk prior to ODFA's direct, indirect or guaranteed amounts. An amount equal to ODFA funds, guarantees or indirect investments plus the private sector matching funds shall be invested in projects within the boundaries of the State of Oklahoma. However, this shall not prohibit private sector investment enterprises from investing other funds not generated by ODFA or CERF activities or considered as part of the matching funds used to attract ODFA capital in projects outside of the State of Oklahoma.(2) Public sector. The maximum amount of an Insurance Commitment in enhancing a public sector entity financing (or refinancing) of facilities or Program participation will not exceed one hundred percent (100%) of the entity's cost of financing, refinancing or Program participation.