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Can you summarize NDCC Chapter 6-09.14?
Banks and Banking > Partnership in Assisting Community Expansion
Short Summary
The legal document governs the Partnership in Assisting Community Expansion in North Dakota. It applies to communities and new or expanding businesses. The document establishes a partnership in assisting community expansion fund, which is a revolving fund used to buy down the interest rate on loans made by a lead financial institution in participation with the Bank of North Dakota. The Bank of North Dakota administers the fund, and the moneys in the fund must be used for eligible uses such as the purchase of real property and equipment, expansion of facilities, working capital, and inventory. However, the loan funds cannot be used to refinance existing debt or for business relocation within North Dakota. The community determines the amount of the interest rate buydown and applies to the Bank of North Dakota for participation from the partnership in assisting community expansion fund. The fund participation portion in the buydown is determined by the Bank of North Dakota based on economic conditions in the city or county where the business is located. The maximum amount from the fund in the interest rate buydown is five hundred thousand dollars per loan, limited to the amount required to buy down the interest to five hundred basis points below the national prime interest rate. The Bank of North Dakota is responsible for adopting rules to implement this chapter.
Whom does it apply to?
Communities and new or expanding businesses
What does it govern?
Partnership in Assisting Community Expansion
What are exemptions?
The loan funds cannot be used to refinance existing debt or for business relocation within North Dakota
What are the Penalties?
No specific penalties are mentioned
Jurisdiction
North Dakota