Authorized Uses of NMTC Allocation. The Allocatee shall use the proceeds of its NMTC Allocation to make investments or Reinvestments only as follows: (a) At such time that the Allocatee has made 100 percent of its QLICIs or September 30, 2011, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least 85 percent of the total dollar amount of its QLICIs in the types of activities listed in Schedule 1 of this Allocation Agreement. (b) At such time that the Allocatee has made 100 percent of its QLICIs or September 30, 2011, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least 85 percent of the total dollar amount of its QLICIs in the Service Area(s) listed in Schedule 1 of this Allocation Agreement. (c) If applicable, the Allocatee may transfer all or part of its NMTC Allocation to the Subsidiary Allocatees listed in Schedule 1 of this Allocation Agreement. (d) If applicable, as listed in Schedule 1 of this Allocation Agreement, the Allocatee shall satisfy the requirements of IRC § 45D(b)(1)(B) and 26 C.F.R. 1.45D-1(c)(5) with respect to the Qualified Equity Investments it receives by making QLICIs in businesses in which persons unrelated to the Allocatee hold the majority equity interest (as defined in IRC §45D(f)(2)(B)), and as determined subsequent to the Allocatee making the QLICI. The requirement of this Section 3.2(d) does not apply if an Allocatee becomes related to a business due to financial difficulties of the business that were unforeseen at the time the Allocatee made a QLICI in the business. (e) By September 30, 2011, the Allocatee shall issue at least 60 percent of the total dollar amount of its Qualified Equity Investments related to its NMTC Allocation. (f) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 2011, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall fulfill the requirements listed in Schedule 1 of this Allocation Agreement, pertaining to “Flexible Products”. The Allocatee shall demonstrate that 100 percent of QLICIs made in the form of loans to or investments in CDEs or QALICBs (as opposed to loan purchases or the provision of Financial Counseling and Other Services) incorporated terms and conditions that, at the time the QLICIs were made, were flexible, non-conventional, or non-conforming with reference to either the Allocatee’s underwriting guidelines or standard practice in the marketplace as documented by the Allocatee. Specifically, the Allocatee must have made QLICIs that (a) are equity or equity-equivalent financing, (b) have interest rates that are the designated percent lower than either the prevailing market rates for the particular product or the Allocatee’s current offerings for the particular product, or (c) meet the designated number of the following criteria, provided nothing in this Allocation Agreement shall be construed to require the Allocatee to engage in unsafe or unsound underwriting practices: (i) Debt with equity features (i.e., debt with royalties; debt with warrants; convertible debt); (ii) Subordinated debt; (iii) Below market interest rates; (iv) Lower than standard origination fees; (v) A longer than standard period of interest only loan payments; (vi) Higher than standard loan to value ratio; (vii) A longer than standard amortization period; (viii) More flexible borrower credit standards; (ix) Nontraditional forms of collateral; (x) Lower than standard debt service coverage ratio; or (xi) Loan loss reserve requirements that are less than standard. Furthermore, to the extent that the Allocatee makes QLICIs in the form of loans to or investments in CDEs (“Recipient CDEs”), the Allocatee shall require that the Recipient CDE fulfill the “Flexible Products” requirements listed in Schedule 1 to this allocation agreement, with respect to loans and investments made by the Recipient CDEs to QALICBs. (g) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 2011, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least the designated percentage of the total dollar amount of its QLICIs, as listed in schedule 1 of this Allocation Agreement, in Non- Metropolitan Counties. (h) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 2011, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall have made at least 75 percent of the total dollar amount of its QLICIs in areas that are (1) characterized by at least one of items (i) – (iii) on the list below for each QLICI, or (2) characterized by at least two of items (iv) –
Appears in 2 contracts
Sources: Allocation Agreement, Allocation Agreement
Authorized Uses of NMTC Allocation. The Allocatee shall use the proceeds of its NMTC Allocation to make investments or Reinvestments only as follows:
(a) At such time that the Allocatee has made 100 percent of its QLICIs or September 30, 20112010, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least 85 percent of the total dollar amount of its QLICIs in the types of activities listed in Schedule 1 of this Allocation Agreement.
(b) At such time that the Allocatee has made 100 percent of its QLICIs or September 30, 20112010, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least 85 percent of the total dollar amount of its QLICIs in the Service Area(s) listed in Schedule 1 of this Allocation Agreement.
(c) If applicable, the Allocatee may transfer all or part of its NMTC Allocation to the Subsidiary Allocatees listed in Schedule 1 of this Allocation Agreement.
(d) If applicable, as listed in Schedule 1 of this Allocation Agreement, the Allocatee shall satisfy the requirements of IRC § 45D(b)(1)(B) and 26 C.F.R. 1.45D-1(c)(51.45D- 1(c)(5) with respect to the Qualified Equity Investments it receives by making QLICIs in businesses in which persons unrelated to the Allocatee hold the majority equity interest (as defined in IRC §45D(f)(2)(B)), and as determined subsequent to the Allocatee making the QLICI. The requirement of this Section 3.2(d) does not apply if an Allocatee becomes related to a business due to financial difficulties of the business that were unforeseen at the time the Allocatee made a QLICI in the business.
(e) By September 30, 20112010, the Allocatee shall issue at least 60 percent of the total dollar amount of its Qualified Equity Investments related to its NMTC Allocation.
(f) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 20112010, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall fulfill the requirements listed in Schedule 1 of this Allocation Agreement, pertaining to “Flexible Products”. The Allocatee shall demonstrate that 100 percent of QLICIs made in the form of loans to or investments in CDEs or QALICBs (as opposed to loan purchases or the provision of Financial Counseling and Other Services) incorporated terms and conditions that, at the time the QLICIs were made, were flexible, non-conventional, or non-conforming with reference to either the Allocatee’s underwriting guidelines or standard practice in the marketplace as documented by the Allocatee. Specifically, the Allocatee must have made QLICIs that (a) are equity or equity-equivalent financing, (b) have interest rates that are the designated percent lower than either the prevailing market rates for the particular product or the AllocateeApplicant’s current offerings for the particular product, or (c) meet the designated number of the following criteria, provided nothing in this Allocation Agreement shall be construed to require the Allocatee to engage in unsafe or unsound underwriting practices:
(i) Debt with equity features (i.e., debt with royalties; debt with warrants; convertible debt);
(ii) Subordinated debt;
(iii) Below market interest rates;
(iv) Lower than standard origination fees;
(v) A longer than standard period of interest only loan payments;
(vi) Higher than standard loan to value ratio;
(vii) A longer than standard amortization period;
(viii) More flexible borrower credit standards;
(ix) Nontraditional forms of collateral;
(x) Lower than standard debt service coverage ratio; or
(xi) Loan loss reserve requirements that are less than standard. Furthermore, to the extent that the Allocatee makes QLICIs in the form of loans to or investments in CDEs (“Recipient CDEs”), the Allocatee shall require that the Recipient CDE fulfill the “Flexible Products” requirements listed in Schedule 1 to this allocation agreement, with respect to loans and investments made by the Recipient CDEs to QALICBs.
(g) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 2011, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least use the designated percentage of the total dollar amount proceeds of its QLICIs, as Qualified Equity Investments minimally or solely to make QLICIs in the project(s) listed in schedule Schedule 1 of this Allocation Agreement, in Non- Metropolitan Counties.
(h) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 20112010, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall have made at least 75 percent of the total dollar amount of its QLICIs in areas that are (1) characterized by at least one of items (i) – (iii) on the list below for each QLICI, or (2) characterized by at least two of items (iv) –– (xvi) on the list below for each QLICI, or (3) characterized by item (xvii) on the list below as of the date the Allocatee closed the QLICI transaction:
(i) Census tracts with poverty rates greater than 30 percent;
(ii) Census tracts that (a) if located within a non-Metropolitan Area, have a median family income that does not exceed 60 percent of statewide median family income; or (b) if located within a Metropolitan Area, have a median family income that does not exceed 60 percent of the greater of statewide median family income or the Metropolitan Area median family income;
(iii) Census tracts with unemployment rates at least 1.5 times the national average;
(iv) Census tracts with one of the following: (a) poverty rates greater than 25%; or (b) if located within a non-Metropolitan Area, median family income that does not exceed 70% of statewide median family income, or, if located within a Metropolitan Area, median family income that does not exceed 70% of the greater of the statewide median family income or the Metropolitan Area median family income; or (c) unemployment rates at least 1.25 times the national average.
(v) Federally designated Empowerment Zones, Enterprise Communities, or Renewal Communities;
(vi) U.S. Small Business Administration (SBA) designated HUB Zones, to the extent that the QLICIs will support businesses that obtain HUB Zone certification from the SBA;
(vii) ▇▇▇▇▇▇▇▇▇▇ sites as defined under 42 U.S.C. 9601(39) (viii) Areas encompassed by a HOPE VI redevelopment plan;
Appears in 2 contracts
Sources: Allocation Agreement, Allocation Agreement
Authorized Uses of NMTC Allocation. The Allocatee shall use the proceeds of its NMTC Allocation to make investments or Reinvestments only as follows:
(a) At such time that the Allocatee has made closed 100 percent of its QLICIs or September 30, 20112016, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least 85 percent of the total dollar amount of its QLICIs in the types of activities listed in Schedule 1 of this Allocation Agreement.
(b) At such time that the Allocatee has made closed 100 percent of its QLICIs or September 30, 20112016, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least 85 percent of the total dollar amount of its QLICIs in the Service Area(s) listed in Schedule 1 of this Allocation Agreement. The Service Area listed in Schedule 1 pertains only to the Allocatee. Should the Allocatee wish to suballocate to one or more of its Subsidiary Allocatee(s), if applicable, it shall ensure that any Subsidiary Allocatee(s) enjoined to this Allocation Agreement make NMTC investments only within the respective Subsidiary Allocatee’s certified service area.
(c) If applicable, the Allocatee may transfer all or part of its NMTC Allocation to the Subsidiary Allocatees listed in Schedule 1 of this Allocation Agreement.
(d) If applicable, as listed in Schedule 1 of this Allocation Agreement, the Allocatee shall satisfy the requirements of IRC § 45D(b)(1)(B) and 26 C.F.R. 1.45D-1(c)(5) with respect to the Qualified Equity Investments it receives by making QLICIs in businesses in which persons unrelated to the Allocatee hold the majority equity interest (as defined in IRC §45D(f)(2)(B)), and as determined subsequent to the receipt of a QEI, but prior to the Allocatee making using the proceeds of that QEI to make the initial QLICI. The requirement of this Section 3.2(d) does not apply if an Allocatee becomes related to a business due to financial difficulties of the business that were unforeseen at the time the Allocatee made a QLICI in the business.
(e) By September 30, 20112016, the Allocatee shall issue at least 60 percent of the total dollar amount of its Qualified Equity Investments related to its NMTC Allocation.
(f) If applicable, at such time that the Allocatee has made closed 100 percent of its QLICIs or September 30, 20112016, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall fulfill the requirements listed in Schedule 1 of this Allocation Agreement, pertaining to “Flexible Products”. The Allocatee shall demonstrate that 100 percent of QLICIs made closed in the form of loans to or investments in CDEs or QALICBs (as opposed to loan purchases or the provision of Financial Counseling and Other Services) incorporated terms and conditions that, at the time the QLICIs were made, were flexible, non-conventional, or non-conforming with reference to either the Allocatee’s underwriting guidelines or standard practice in the marketplace as documented by the Allocatee. Specifically, the Allocatee must have made QLICIs that (a) are equity or equity-equivalent financing, (b) have interest rates that are the designated percent lower than either the prevailing market rates for the particular product or the Allocatee’s current offerings for the particular product, or (c) meet the designated number of the following criteria, provided nothing in this Allocation Agreement shall be construed to require the Allocatee to engage in unsafe or unsound underwriting practices:
(i) Debt including debt with equity features (i.e.e.g., debt with royalties; debt with warrants; convertible debt);
(ii) Subordinated debt;
(iii) Below market interest rates;
(iv) Lower than standard origination fees;
(v) A longer than standard period of interest only loan payments;
(vi) Higher than standard loan to value ratio;
(vii) A longer than standard amortization period;
(viii) More flexible borrower credit standards;
(ix) Nontraditional forms of collateral;
(x) Lower than standard debt service coverage ratio; or
(xi) Loan loss reserve requirements that are less than standard. Furthermore, to the extent that the Allocatee makes QLICIs in the form of loans to or investments in CDEs (“Recipient CDEs”), the Allocatee shall require that the Recipient CDE fulfill the “Flexible Products” requirements listed in Schedule 1 to this allocation agreement, with respect to loans and investments made by the Recipient CDEs to QALICBs.
(g) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 2011, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least the designated percentage of the total dollar amount of its QLICIs, as listed in schedule 1 of this Allocation Agreement, in Non- Metropolitan Counties.
(h) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 2011, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall have made at least 75 percent of the total dollar amount of its QLICIs in areas that are (1) characterized by at least one of items (i) – (iii) on the list below for each QLICI, or (2) characterized by at least two of items (iv) –
Appears in 1 contract
Sources: Allocation Agreement
Authorized Uses of NMTC Allocation. The Allocatee shall use the proceeds of its NMTC Allocation to make investments or Reinvestments only as follows:
(a) At such time that the Allocatee has made 100 percent of its QLICIs or September 30, 20112008, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least 85 percent of its QLICIs (in terms of the total aggregate dollar amount of its QLICIs the QLICIs) in the types of activities listed in Schedule 1 of this Allocation Agreement.
(b) At such time that the Allocatee has made 100 percent of its QLICIs or September 30, 20112008, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least 85 percent of its QLICIs (in terms of the total aggregate dollar amount of its QLICIs the QLICIs) in the Service Area(s) listed in Schedule 1 of this Allocation Agreement.
(c) If applicable, the Allocatee may transfer all or part of its NMTC Allocation to the Subsidiary Allocatees listed in Schedule 1 of this Allocation Agreement.
(d) If applicable, as listed in Schedule 1 of this Allocation Agreement, the Allocatee shall satisfy the requirements of IRC § 45D(b)(1)(B) and 26 C.F.R. 1.45D-1(c)(51.45D- 1(c)(5) with respect to the Qualified Equity Investments it receives by making QLICIs in businesses in which persons unrelated to the Allocatee hold the majority equity interest (as defined in IRC §45D(f)(2)(B)), and as determined subsequent to the Allocatee making the QLICI. The requirement of this Section 3.2(d) does not apply if an Allocatee becomes related to a business due to financial difficulties of the business that were unforeseen at the time the Allocatee made a QLICI in the business.
(e) By September 30, 20112008, the Allocatee shall issue at least 60 percent of the total dollar amount of its Qualified Equity Investments related to its NMTC Allocation.
(f) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 20112008, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall fulfill demonstrate that it has made at least the requirements designated percent of such QLICIs as listed in Schedule 1 of this Allocation Agreement, pertaining to “Flexible Products”. The Allocatee shall demonstrate Agreement (in terms of the aggregate dollar amount of the QLICIs) that 100 percent of QLICIs made are in the form of loans to or investments in CDEs or QALICBs (as opposed to loan purchases or the provision of Financial Counseling and Other Services) incorporated using terms and conditions that, at the time each of the QLICIs were was made, were flexible, non-conventional, or non-non- conforming with reference to either the Allocatee’s underwriting guidelines or standard practice in the marketplace as documented by the Allocatee. Specifically, the Allocatee must have made QLICIs that (a) are equity including one or equity-equivalent financing, (b) have interest rates that are the designated percent lower than either the prevailing market rates for the particular product or the Allocatee’s current offerings for the particular product, or (c) meet the designated number more of the following criteriacriteria as is appropriate for the type of borrower or investee, use of loan or equity investment proceeds and transaction type, provided nothing in this Allocation Agreement shall be construed to require the Allocatee to engage in unsafe or unsound underwriting practices:
(i) Equity products;
(ii) Equity-equivalent terms and conditions;
(iii) Debt with equity features (i.e., debt with royalties; debt with warrants; convertible debt);
(iiiv) Subordinated debt;
(iiiv) Below market interest rates;
(ivvi) Lower than standard origination fees;
(vvii) A longer than standard period of interest only loan payments;
(viviii) Higher than standard loan to value ratio;
(viiix) A longer than standard amortization period;
(viiix) More flexible borrower credit standards;
(ixxi) Nontraditional forms of collateral;
(xxii) Lower than standard debt service coverage ratio; or
(xixiii) Loan loss reserve requirements that are less than standard. Furthermore, to the extent that the Allocatee makes QLICIs in the form of loans to or investments in CDEs (“Recipient CDEs”), the Allocatee shall require that the Recipient recipient CDE fulfill makes loans to or investments in QALICBs using one or more of the “Flexible Products” requirements listed in Schedule 1 to this allocation agreementcriteria set forth above for the Allocatee’s provision of flexible, with respect to loans and investments made by the Recipient CDEs to QALICBsnon-conventional, or non- confirming financing.
(g) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 2011, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least use the designated percentage of the total dollar amount proceeds of its QLICIs, as Qualified Equity Investments minimally or solely to make QLICIs in the project(s) listed in schedule Schedule 1 of this Allocation Agreement, in Non- Metropolitan Counties.
(h) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 20112008, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall have made at least 75 the designated percent of the total dollar amount of its QLICIs QLICIs, as listed in areas that are (1) characterized by at least Schedule 1 of this Allocation Agreement, with one or more of items the following criteria or programs, as of the date the Allocatee closed the QLICI transaction:
(i) – Poverty rates greater than 30 percent;
(ii) If located within a non-Metropolitan Area, median family income does not exceed 60 percent of statewide median family income or if located within a Metropolitan Area, median family income does not exceed 60 percent of the greater of statewide median family income or the Metropolitan Area median family income;
(iii) on the list below for each QLICI, or (2) characterized by Unemployment rates at least two of items 1.5 times the national average;
(iv) –Federally designated Empowerment Zones, Enterprise Communities, or Renewal Communities;
(v) U.S. Small Business Administration (SBA) designated HUB Zones, to the extent that the QLICIs will support businesses that obtain HUB Zone certification from the SBA;
(vi) Federally designated Brownfields redevelopment areas;
(vii) Encompassed by a HOPE VI redevelopment plan;
(viii) Federally designated as Native American or Alaskan Native areas, Hawaiian Homelands, or redevelopment areas by the appropriate Tribal or other authority;
(ix) Areas designated as distressed by the Appalachian Regional Commission or Delta Regional Authority;
(x) Colonias areas as designated by the U.S. Department of Housing and Urban Development;
(xi) Federally designated medically underserved areas, to the extent that QLICI activities will support health related services;
(xii) Located in a Hot Zone (defined as geographic areas designated by the Fund as having greater levels of economic distress); or
(xiii) State or local tax-increment financing districts, enterprise zone programs, or other similar state/local programs targeted towards particularly economically distressed communities. Furthermore, to the extent that the Allocatee makes QLICIs in the form of loans to or investments in CDEs, the Allocatee shall require that the recipient CDE makes loans to or investments in QALICBs using one or more of the criteria or programs set forth above in this Section 3.2(h).
(i) If applicable, the Allocatee shall require CDEs from which it purchases loans to reinvest at least the designated percent of the proceeds of such loan sales, as listed in Schedule 1 of this Allocation Agreement, in the form of QLICIs.
(j) If applicable, at such time that the Allocatee has issued 100 percent of its Qualified Equity Investments or September 30, 2008, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall use at least the designated percent of its Qualified Equity Investments (in terms of the aggregate dollar amount of the Qualified Equity Investments), as listed in Schedule 1 to this Allocation Agreement, to make QLICIs.
Appears in 1 contract
Sources: Allocation Agreement
Authorized Uses of NMTC Allocation. The Allocatee shall use the proceeds of its NMTC Allocation to make investments or Reinvestments only as follows:
(a) At such time that the The Allocatee has made 100 shall make at least 85 percent of its QLICIs or September 30, 2011, whichever date is earlier, and until (in terms of the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, aggregate dollar amount of the QLICIs) in the following types of activities:
(b) The Allocatee shall make at least 85 percent of the total authorized QLICIs (in terms of the aggregate dollar amount of its QLICIs the QLICIs) set forth in Section 3.2(a) hereof in the types of activities listed in Schedule 1 of this Allocation Agreement.
(b) At such time that the Allocatee has made 100 percent of its QLICIs or September 30, 2011, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least 85 percent of the total dollar amount of its QLICIs in the following Service Area(s) listed in Schedule 1 of this Allocation Agreement.):
(c) If [if applicable, the ] The Allocatee may transfer all or part of its NMTC Allocation to the following Subsidiary Allocatees listed in Schedule 1 of this Allocation Agreement.Allocatees:
(d) If [if applicable, as listed in Schedule 1 of this Allocation Agreement, the ] The Allocatee shall satisfy the requirements of IRC § 45D(b)(1)(B) and 26 C.F.R. 1.45D-1(c)(51.45D-1T(c)(5) with respect to the Qualified Equity Investments it receives by making QLICIs in businesses in which persons unrelated to the Allocatee hold the majority equity interest (as defined in IRC §45D(f)(2)(B)), and as determined subsequent to the Allocatee making the QLICI. The requirement At no time shall the aggregate dollar amount of this Section 3.2(d) does not apply if an Allocatee becomes QLICIs made to related to a business due to financial difficulties entities exceed 15 percent of the business that were unforeseen at the time the Allocatee made a QLICI in the business.Allocatee’s total NMTC Allocation;
(e) By September 30, 20112007, the Allocatee shall issue at least 60 percent of the total dollar amount of its Qualified Equity Investments related to its NMTC Allocation.;
(f) If [if applicable, at ] At such time that the Allocatee has made 100 percent of its QLICIs or September 30, 20112007, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall fulfill the requirements listed in Schedule 1 of this Allocation Agreement, pertaining to “Flexible Products”. The Allocatee shall demonstrate that 100 more than percent of such QLICIs(in terms of the aggregate dollar amount of the QLICIs made ) that are in the form of loans to or investments in CDEs or QALICBs (as opposed to loan purchases or the provision of Financial Counseling and Other Services) incorporated were made using terms and conditions that, at the time each of the QLICIs were was made, were flexible, non-conventional, or non-conforming with reference to either the Allocatee’s underwriting guidelines or standard practice in the marketplace as documented by the Allocatee. Specifically, the Allocatee must have made QLICIs that (a) are equity including one or equity-equivalent financing, (b) have interest rates that are the designated percent lower than either the prevailing market rates for the particular product or the Allocatee’s current offerings for the particular product, or (c) meet the designated number more of the following criteriacriteria as is appropriate for the type of borrower or investee, use of loan or equity investment proceeds and transaction type, provided nothing in this Allocation Agreement shall be construed to require the Allocatee to engage in unsafe or unsound underwriting practices:
(i) Equity products;
(ii) Equity-equivalent terms and conditions;
(iii) Debt with equity features (i.e., debt with royalties; debt with warrants; convertible debt);
(iiiv) Subordinated debt;
(iiiv) Below market interest rates;
(ivvi) Lower than standard origination fees;
(vvii) A longer than standard period of interest only loan payments;
(viviii) Higher than standard loan to value ratio;
(viiix) A longer than standard amortization period;
(viiix) More flexible borrower credit standards;
(ixxi) Nontraditional forms of collateral;
(xxii) Lower than standard debt service coverage ratio; or
(xixiii) Loan loss reserve requirements that are less than standard. Furthermore, to the extent that the Allocatee makes QLICIs in the form of loans to or investments in CDEs (“Recipient CDEs”), the Allocatee shall require that the Recipient CDE fulfill the “Flexible Products” requirements listed in Schedule 1 to this allocation agreement, with respect to loans and investments made by the Recipient CDEs to QALICBs.
(g) If [if applicable, at ] The Allocatee shall use the proceeds of its Qualified Equity Investments to make QLICIs in the following project(s):
(h) [if applicable] At such time that the Allocatee has made 100 percent of its QLICIs or September 30, 20112007, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least the designated percentage of the total dollar amount of its QLICIs, as listed in schedule 1 of this Allocation Agreement, in Non- Metropolitan Counties.
(h) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 2011, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall have made at least 75 percent of the total dollar amount of its the Allocatee’s QLICIs shall have been made in areas that are (1) characterized by at least within its Service Area with one or more of items the following criteria or programs, as of the date the Allocatee closed the QLICI transaction:
(i) – Poverty rates greater than 30 percent;
(ii) Median incomes of less than 60 percent of area median income, as measured by the Metropolitan Area in which the communities are located, or as measured by the statewide area median income if the area is not in a Metropolitan Area;
(iii) on the list below for each QLICI, or (2) characterized by Unemployment rates at least two of items 1.5 times the national average;
(iv) –Designated for redevelopment by a governmental agency;
(v) Federally designated Empowerment Zones, Enterprise Communities, or Renewal Communities;
(vi) SBA designated HUB Zones;
(vii) Designated as Native American or Alaskan Native areas, Hawaiian Homelands, or redevelopment areas by the appropriate Tribal or other authority;
(viii) Brownfields redevelopment areas;
(ix) Encompassed by a HOPE VI redevelopment plan; or
(x) Located in a Hot Zone (defined as geographic areas designated by the Fund as having greater levels of economic distress).
(i) [if applicable] The Allocatee shall require CDEs from which it purchases loans to reinvest percent of the proceeds of such loan sales in the form of QLICIs.
Appears in 1 contract
Sources: Allocation Agreement
Authorized Uses of NMTC Allocation. The Allocatee shall use the proceeds of its NMTC Allocation to make investments or Reinvestments only as follows:
(a) At such time that the Allocatee has made 100 percent of its QLICIs or September 30, 20112009, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least 85 percent of its QLICIs (in terms of the total aggregate dollar amount of its QLICIs the QLICIs) in the types of activities listed in Schedule 1 of this Allocation Agreement.
(b) At such time that the Allocatee has made 100 percent of its QLICIs or September 30, 20112009, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least 85 percent of its QLICIs (in terms of the total aggregate dollar amount of its QLICIs the QLICIs) in the Service Area(s) listed in Schedule 1 of this Allocation Agreement.
(c) If applicable, the Allocatee may transfer all or part of its NMTC Allocation to the Subsidiary Allocatees listed in Schedule 1 of this Allocation Agreement.
(d) If applicable, as listed in Schedule 1 of this Allocation Agreement, the Allocatee shall satisfy the requirements of IRC § 45D(b)(1)(B) and 26 C.F.R. 1.45D-1(c)(51.45D- 1(c)(5) with respect to the Qualified Equity Investments it receives by making QLICIs in businesses in which persons unrelated to the Allocatee hold the majority equity interest (as defined in IRC §45D(f)(2)(B)), and as determined subsequent to the Allocatee making the QLICI. The requirement of this Section 3.2(d) does not apply if an Allocatee becomes related to a business due to financial difficulties of the business that were unforeseen at the time the Allocatee made a QLICI in the business.
(e) By September 30, 20112009, the Allocatee shall issue at least 60 percent of the total dollar amount of its Qualified Equity Investments related to its NMTC Allocation.
(f) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 20112009, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall fulfill the requirements listed in Schedule 1 of this Allocation Agreement, pertaining to “Flexible Products”. The Allocatee shall demonstrate that 100 percent of any QLICIs made in the form of loans to or investments in CDEs or QALICBs (as opposed to loan purchases or the provision of Financial Counseling and Other Services) incorporated terms and conditions that, at the time each of the QLICIs were was made, were flexible, non-conventional, or non-conforming with reference to either the Allocatee’s underwriting guidelines or standard practice in the marketplace as documented by the Allocatee. Specifically, the Allocatee must have made QLICIs that (a) are equity or equity-equity- equivalent financing, (b) have interest rates that are the designated at least 25 percent lower than either the prevailing market rates for the particular product or at least 25 percent lower than the AllocateeApplicant’s current offerings for the particular product, or (c) meet the designated number at least three of the following criteria, provided nothing in this Allocation Agreement shall be construed to require the Allocatee to engage in unsafe or unsound underwriting practices:
(i) Debt with equity features (i.e., debt with royalties; debt with warrants; convertible debt);
(ii) Subordinated debt;
(iii) Below market interest rates;
(iv) Lower than standard origination fees;
(v) A longer than standard period of interest only loan payments;
; (vi) Higher than standard loan to value ratio;
(vii) A longer than standard amortization period;
(viii) More flexible borrower credit standards;
(ix) Nontraditional forms of collateral;
(x) Lower than standard debt service coverage ratio; or
(xi) Loan loss reserve requirements that are less than standard. Furthermore, to the extent that the Allocatee makes QLICIs in the form of loans to or investments in CDEs (“Recipient CDEs”), the Allocatee shall require that the Recipient CDE fulfill the “Flexible Products” requirements listed in Schedule 1 to this allocation agreement, with respect to loans and investments made by the Recipient CDEs to QALICBs.
(g) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 2011, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least the designated percentage of the total dollar amount of its QLICIs, as listed in schedule 1 of this Allocation Agreement, in Non- Metropolitan Counties.
(h) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 2011, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall have made at least 75 percent of the total dollar amount of its QLICIs in areas that are (1) characterized by at least one of items (i) – (iii) on the list below for each QLICI, or (2) characterized by at least two of items (iv) –
Appears in 1 contract
Sources: Allocation Agreement
Authorized Uses of NMTC Allocation. The Allocatee shall use the proceeds of its NMTC Allocation to make investments or Reinvestments only as follows:
(a) At such time that the Allocatee has made 100 percent of its QLICIs or September 30, 20112009, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least 85 percent of its QLICIs (in terms of the total aggregate dollar amount of its QLICIs the QLICIs) in the types of activities listed in Schedule 1 of this Allocation Agreement.
(b) At such time that the Allocatee has made 100 percent of its QLICIs or September 30, 20112009, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least 85 percent of its QLICIs (in terms of the total aggregate dollar amount of its QLICIs the QLICIs) in the Service Area(s) listed in Schedule 1 of this Allocation Agreement.
(c) If applicable, the Allocatee may transfer all or part of its NMTC Allocation to the Subsidiary Allocatees listed in Schedule 1 of this Allocation Agreement.
(d) If applicable, as listed in Schedule 1 of this Allocation Agreement, the Allocatee shall satisfy the requirements of IRC § 45D(b)(1)(B) and 26 C.F.R. 1.45D-1(c)(5) with respect to the Qualified Equity Investments it receives by making QLICIs in businesses in which persons unrelated to the Allocatee hold the majority equity interest (as defined in IRC §45D(f)(2)(B)), and as determined subsequent to the Allocatee making the QLICI. The requirement of this Section 3.2(d) does not apply if an Allocatee becomes related to a business due to financial difficulties of the business that were unforeseen at the time the Allocatee made a QLICI in the business.
(e) By September 30, 20112009, the Allocatee shall issue at least 60 percent of the total dollar amount of its Qualified Equity Investments related to its NMTC Allocation.
(f) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 20112009, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall fulfill the requirements listed in Schedule 1 of this Allocation Agreement, pertaining to “Flexible Products”. The Allocatee shall demonstrate that 100 percent of QLICIs made in the form of loans to or investments in CDEs or QALICBs (as opposed to loan purchases or the provision of Financial Counseling and Other Services) incorporated terms and conditions that, at the time the QLICIs were made, were flexible, non-conventional, or non-non- conforming with reference to either the Allocatee’s underwriting guidelines or standard practice in the marketplace as documented by the Allocatee. Specifically, the Allocatee must have made QLICIs that (a) are equity or equity-equity- equivalent financing, (b) have interest rates that are the designated at least 25 percent lower than either the prevailing market rates for the particular product or at least 25 percent lower than the AllocateeApplicant’s current offerings for the particular product, or (c) meet the designated number at least three of the following criteria, provided nothing in this Allocation Agreement shall be construed to require the Allocatee to engage in unsafe or unsound underwriting practices:
(i) Debt with equity features (i.e., debt with royalties; debt with warrants; convertible debt);
(ii) Subordinated debt;
(iii) Below market interest rates;
(iv) Lower than standard origination fees;
(v) A longer than standard period of interest only loan payments;
(vi) Higher than standard loan to value ratio;
(vii) A longer than standard amortization period;
(viii) More flexible borrower credit standards;
(ix) Nontraditional forms of collateral;
(x) Lower than standard debt service coverage ratio; or
(xi) Loan loss reserve requirements that are less than standard. Furthermore, to the extent that the Allocatee makes QLICIs in the form of loans to or investments in CDEs (“Recipient CDEs”), the Allocatee shall require that the Recipient CDE fulfill makes loans to or investments in QALICBs that (a) are equity or equity-equivalent financing, (b) have interest rates that are at least 25 percent lower than the “Flexible Products” requirements listed in Schedule 1 to this allocation agreementprevailing market rates for the particular product or at least 25 percent lower than the CDE’s current offerings for the particular product, with respect to loans and investments made by the Recipient CDEs to QALICBsor (c) meet at least three of criteria i-xi above.
(g) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 2011, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least use the designated percentage of the total dollar amount proceeds of its QLICIs, as Qualified Equity Investments minimally or solely to make QLICIs in the project(s) listed in schedule Schedule 1 of this Allocation Agreement, in Non- Metropolitan Counties.
(h) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 20112009, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall have made at least 75 percent of the total dollar amount of its QLICIs in areas that are (1) characterized by at least one of items (i) – (iii) on the list below for each QLICI, or (2) characterized by at least two of items (iv) –– (xiv) on the list below for each QLICI, or (3) characterized by item (xv) on the list below as of the date the Allocatee closed the QLICI transaction:
(i) Census tracts with poverty rates greater than 30 percent;
(ii) If located within a non-Metropolitan Area, median family income does not exceed 60 percent of statewide median family income or if located within a Metropolitan Area, median family income does not exceed 60 percent of the greater of statewide median family income or the Metropolitan Area median family income;
(iii) Census tracts with unemployment rates at least 1.5 times the national average;
(iv) Federally designated Empowerment Zones, Enterprise Communities, or Renewal Communities;
(v) U.S. Small Business Administration (SBA) designated HUB Zones, to the extent that the QLICIs will support businesses that obtain HUB Zone certification from the SBA;
(vi) ▇▇▇▇▇▇▇▇▇▇ sites as defined under 42 U.S.C. 9601(39)
(vii) Areas encompassed by a HOPE VI redevelopment plan;
(viii) Federally designated as Native American or Alaskan Native areas, Hawaiian Homelands, or redevelopment areas by the appropriate Tribal or other authority;
(ix) Areas designated as distressed by the Appalachian Regional Commission or Delta Regional Authority;
(x) Colonias areas as designated by the U.S. Department of Housing and Urban Development;
(xi) Federally designated medically underserved areas, to the extent that QLICI activities will support health related services;
(xii) Located in a Hot Zone (defined as geographic areas designated by the Fund as having greater levels of economic distress);
(xiii) High Migration Rural County (defined as any county which, during the 20 year period ending with the year in which the most recent census was conducted, has a net out-migration of inhabitants from the county of at least 10 percent of the population of the county at the beginning of such period. See IRC §45D(e)(5));
(xiv) State or local tax-increment financing districts, enterprise zone programs, or other similar state/local programs targeted towards particularly economically distressed communities; or
(xv) Counties for which the Federal Emergency Management Agency (FEMA) has (a) issued a “major disaster declaration” since July 15, 2005; and (b) made a determination that such County is eligible for both “individual and public assistance;” provided that, for areas not located within the GO Zone, the initial project investment was made within 24 months of the disaster declaration. Furthermore, to the extent that the Allocatee makes QLICIs in the form of loans to or investments in CDEs (“Recipient CDEs”), the Allocatee shall require that the Recipient CDE makes loans to or investments in QALICBs in areas that are
(1) characterized by at least one of items (i) – (iii) on the list above for each loan or investment, (2) characterized by at least two of items (iv) – (xiv) on the list above for each loan or investment, or (3) characterized by item (xv) on the list above for each loan or investment .
(i) If applicable, the Allocatee shall require CDEs from which it purchases loans to invest at least the designated percent of the proceeds of such loan sales, as listed in Schedule 1 of this Allocation Agreement, in the form of QLICIs.
(j) If applicable, at such time that the Allocatee has issued 100 percent of its Qualified Equity Investments or September 30, 2009, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall use at least the designated percent of its Qualified Equity Investments (in terms of the aggregate dollar amount of the Qualified Equity Investments), as listed in Schedule 1 to this Allocation Agreement, to make QLICIs. To the extent that the Qualified Equity Investment finances loans to or investments in CDEs (“Recipient CDEs”) that are not Affiliates of or Controlled by the Allocatee, the standard set forth above in this section 3.2(j) shall be applied only to Allocatee – not to the Recipient CDEs.
Appears in 1 contract
Sources: Allocation Agreement
Authorized Uses of NMTC Allocation. The Allocatee shall use the proceeds of its NMTC Allocation to make investments or Reinvestments only as follows:
(a) At such time that the Allocatee has made 100 percent of its QLICIs or September 30, 20112015, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least 85 percent of the total dollar amount of its QLICIs in the types of activities listed in Schedule 1 of this Allocation Agreement.
(b) At such time that the Allocatee has made 100 percent of its QLICIs or September 30, 20112015, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least 85 percent of the total dollar amount of its QLICIs in the Service Area(s) listed in Schedule 1 of this Allocation Agreement. The Service Area listed in Schedule 1 pertains only to the Allocatee. Should the Allocatee wish to suballocate to one or more of its Subsidiary Allocatee(s), if applicable, it shall ensure that any Subsidiary Allocatee(s) enjoined to this Allocation Agreement make NMTC investments only within the respective Subsidiary Allocatee’s certified service area.
(c) If applicable, the Allocatee may transfer all or part of its NMTC Allocation to the Subsidiary Allocatees listed in Schedule 1 of this Allocation Agreement.
(d) If applicable, as listed in Schedule 1 of this Allocation Agreement, the Allocatee shall satisfy the requirements of IRC § 45D(b)(1)(B) and 26 C.F.R. 1.45D-1(c)(5) with respect to the Qualified Equity Investments it receives by making QLICIs in businesses in which persons unrelated to the Allocatee hold the majority equity interest (as defined in IRC §45D(f)(2)(B)), and as determined subsequent to the receipt of a QEI, but prior to the Allocatee making using the proceeds of that QEI to make the initial QLICI. The requirement of this Section 3.2(d) does not apply if an Allocatee becomes related to a business due to financial difficulties of the business that were unforeseen at the time the Allocatee made a QLICI in the business.
(e) By September 30, 20112015, the Allocatee shall issue at least 60 percent of the total dollar amount of its Qualified Equity Investments related to its NMTC Allocation.
(f) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 20112015, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall fulfill the requirements listed in Schedule 1 of this Allocation Agreement, pertaining to “Flexible Products”. The Allocatee shall demonstrate that 100 percent of QLICIs made in the form of loans to or investments in CDEs or QALICBs (as opposed to loan purchases or the provision of Financial Counseling and Other Services) incorporated terms and conditions that, at the time the QLICIs were made, were flexible, non-conventional, or non-conforming with reference to either the Allocatee’s underwriting guidelines or standard practice in the marketplace as documented by the Allocatee. Specifically, the Allocatee must have made QLICIs that (a) are equity or equity-equivalent financing, (b) have interest rates that are the designated percent lower than either the prevailing market rates for the particular product or the Allocatee’s current offerings for the particular product, or (c) meet the designated number of the following criteria, provided nothing in this Allocation Agreement shall be construed to require the Allocatee to engage in unsafe or unsound underwriting practices:
(i) Debt with equity features (i.e., debt with royalties; debt with warrants; convertible debt);
(ii) Subordinated debt;
(iii) Below market interest rates;
(iv) Lower than standard origination fees;
(v) A longer than standard period of interest only loan payments;
(vi) Higher than standard loan to value ratio;
(vii) A longer than standard amortization period;
(viii) More flexible borrower credit standards;
(ix) Nontraditional forms of collateral;
(x) Lower than standard debt service coverage ratio; or
(xi) Loan loss reserve requirements that are less than standard. Furthermore, to the extent that the Allocatee makes QLICIs in the form of loans to or investments in CDEs (“Recipient CDEs”), the Allocatee shall require that the Recipient CDE fulfill the “Flexible Products” requirements listed in Schedule 1 to this allocation agreement, with respect to loans and investments made by the Recipient CDEs to QALICBs.
(g) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 2011, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least the designated percentage of the total dollar amount of its QLICIs, as listed in schedule 1 of this Allocation Agreement, in Non- Metropolitan Counties.
(h) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 2011, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall have made at least 75 percent of the total dollar amount of its QLICIs in areas that are (1) characterized by at least one of items (i) – (iii) on the list below for each QLICI, or (2) characterized by at least two of items (iv) –Financial
Appears in 1 contract
Sources: Allocation Agreement
Authorized Uses of NMTC Allocation. The Allocatee shall use the proceeds of its NMTC Allocation to make investments or Reinvestments only as follows:
(a) At such time that the Allocatee has made closed 100 percent of its QLICIs or September 30December 31, 20112019, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least 85 percent of the total dollar amount of its QLICIs in the types of activities listed in Schedule 1 of this Allocation Agreement.
(b) At such time that the Allocatee has made closed 100 percent of its QLICIs or September 30December 31, 20112019, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least 85 percent of the total dollar amount of its QLICIs in the Service Area(s) listed in Schedule 1 of this Allocation Agreement. The Service Area listed in Schedule 1 pertains only to the Allocatee. Should the Allocatee wish to suballocate to one or more of its Subsidiary Allocatee(s), if applicable, it shall ensure that any Subsidiary Allocatee(s) enjoined to this Allocation Agreement make NMTC investments only within the respective Subsidiary Allocatee’s certified service area.
(c) If applicable, the Allocatee may transfer all or part of its NMTC Allocation to the Subsidiary Allocatees listed in Schedule 1 of this Allocation Agreement.
(d) If applicable, as listed in Schedule 1 of this Allocation Agreement, the Allocatee shall satisfy the requirements of IRC § 45D(b)(1)(B) and 26 C.F.R. 1.45D-1(c)(5) with respect to the Qualified Equity Investments it receives by making QLICIs in businesses in which persons unrelated to the Allocatee hold the majority equity interest (as defined in IRC §45D(f)(2)(B))) in the QALICB after a QEI is made in the Allocatee, and as determined subsequent to but before the Allocatee uses the proceeds of that QEI for making its initial QLICI in the QLICIQALICB. The CDFI Fund will assess compliance with the unrelated entities requirement at the Allocatee and Subsidiary Allocatee level (if any). The requirement of this Section 3.2(d) does not apply if an Allocatee becomes related to a business due to financial difficulties of the business that were unforeseen at the time the Allocatee made a QLICI in the business. The CDFI Fund may review any subsequent changes in the QALICB, Allocatee, or Subsidiary Allocatee’s ownership resulting in common ownership between the Allocatee (and/or Subsidiary Allocatee) and the QALICB on a case-by-case basis to determine whether a principal purpose of a transaction or a planned series of transactions is to achieve a result that is inconsistent with the purposes of this Section 3.2(d).
(e) By September 30December 31, 20112019, the Allocatee shall issue at least 60 percent of the total dollar amount of its Qualified Equity Investments related to its NMTC Allocation.
(f) If applicable, at such time that the Allocatee has made closed 100 percent of its QLICIs or September 30December 31, 20112019, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall fulfill the requirements listed in Schedule 1 of this Allocation Agreement, pertaining to “Flexible Products”. The Allocatee shall demonstrate that 100 percent of QLICIs made closed in the form of loans to or investments in CDEs or QALICBs (as opposed to loan purchases or the provision of Financial Counseling and Other Services) incorporated terms and conditions that, at the time the QLICIs were made, were flexible, non-conventional, or non-conforming with reference to either the Allocatee’s underwriting guidelines or standard practice in the marketplace as documented by the Allocatee. Specifically, the Allocatee must have made QLICIs that (a) are equity or equity-equivalent financing, (b) have interest rates that are the designated percent lower than either the prevailing market rates for the particular product or the Allocatee’s current offerings for the particular product, or (c) meet the designated number of the following criteria, provided nothing in this Allocation Agreement shall be construed to require the Allocatee to engage in unsafe or unsound underwriting practices:
(i) Debt including debt with equity features (i.e.e.g., debt with royalties; debt with warrants; convertible debt);
(ii) Subordinated debt;
(iii) Below market interest rates;
(iv) Lower than standard origination fees;
(v) A longer than standard period of interest only loan payments;
(vi) Higher than standard loan to value ratio;
(vii) A longer than standard amortization period;
(viii) More flexible borrower credit standards;
(ix) Nontraditional forms of collateral;
(x) Lower than standard debt service coverage ratio; or
(xi) Loan loss reserve requirements that are less than standard. Furthermore, to the extent that the Allocatee makes QLICIs in the form of loans to or investments in CDEs (“Recipient CDEs”), the Allocatee shall require that the Recipient CDE fulfill the “Flexible Products” requirements listed in Schedule 1 to this allocation agreement, with respect to loans and investments made by the Recipient CDEs to QALICBs.
(g) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 2011, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least the designated percentage of the total dollar amount of its QLICIs, as listed in schedule 1 of this Allocation Agreement, in Non- Metropolitan Counties.
(h) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 2011, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall have made at least 75 percent of the total dollar amount of its QLICIs in areas that are (1) characterized by at least one of items (i) – (iii) on the list below for each QLICI, or (2) characterized by at least two of items (iv) –
Appears in 1 contract
Sources: Allocation Agreement
Authorized Uses of NMTC Allocation. The Allocatee shall use the proceeds of its NMTC Allocation to make investments or Reinvestments only as follows:
(a) At such time that the Allocatee has made 100 percent of its QLICIs or September 30, 20112012, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least 85 percent of the total dollar amount of its QLICIs in the types of activities listed in Schedule 1 of this Allocation Agreement.
(b) At such time that the Allocatee has made 100 percent of its QLICIs or September 30, 20112012, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least 85 percent of the total dollar amount of its QLICIs in the Service Area(s) listed in Schedule 1 of this Allocation Agreement.
(c) If applicable, the Allocatee may transfer all or part of its NMTC Allocation to the Subsidiary Allocatees listed in Schedule 1 of this Allocation Agreement.
(d) If applicable, as listed in Schedule 1 of this Allocation Agreement, the Allocatee shall satisfy the requirements of IRC § 45D(b)(1)(B) and 26 C.F.R. 1.45D-1(c)(5) with respect to the Qualified Equity Investments it receives by making QLICIs in businesses in which persons unrelated to the Allocatee hold the majority equity interest (as defined in IRC §45D(f)(2)(B)), and as determined subsequent to the Allocatee making the QLICI. The requirement of this Section 3.2(d) does not apply if an Allocatee becomes related to a business due to financial difficulties of the business that were unforeseen at the time the Allocatee made a QLICI in the business.
(e) By September 30, 20112012, the Allocatee shall issue at least 60 percent of the total dollar amount of its Qualified Equity Investments related to its NMTC Allocation.
(f) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 20112012, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall fulfill the requirements listed in Schedule 1 of this Allocation Agreement, pertaining to “Flexible Products”. The Allocatee shall demonstrate that 100 percent of QLICIs made in the form of loans to or investments in CDEs or QALICBs (as opposed to loan purchases or the provision of Financial Counseling and Other Services) incorporated terms and conditions that, at the time the QLICIs were made, were flexible, non-conventional, or non-conforming with reference to either the Allocatee’s underwriting guidelines or standard practice in the marketplace as documented by the Allocatee. Specifically, the Allocatee must have made QLICIs that (a) are equity or equity-equivalent financing, (b) have interest rates that are the designated percent lower than either the prevailing market rates for the particular product or the Allocatee’s current offerings for the particular product, or (c) meet the designated number of the following criteria, provided nothing in this Allocation Agreement shall be construed to require the Allocatee to engage in unsafe or unsound underwriting practices:
(i) Debt with equity features (i.e., debt with royalties; debt with warrants; convertible debt);
(ii) Subordinated debt;
(iii) Below market interest rates;
(iv) Lower than standard origination fees;
(v) A longer than standard period of interest only loan payments;
(vi) Higher than standard loan to value ratio;
(vii) A longer than standard amortization period;
(viii) More flexible borrower credit standards;
(ix) Nontraditional forms of collateral;
(x) Lower than standard debt service coverage ratio; or
(xi) Loan loss reserve requirements that are less than standard. Furthermore, to the extent that the Allocatee makes QLICIs in the form of loans to or investments in CDEs (“Recipient CDEs”), the Allocatee shall require that the Recipient CDE fulfill the “Flexible Products” requirements listed in Schedule 1 to this allocation agreement, with respect to loans and investments made by the Recipient CDEs to QALICBs.
(g) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 20112012, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least the designated percentage of the total dollar amount of its QLICIs, as listed in schedule 1 of this Allocation Agreement, in Non- Metropolitan Counties.
(h) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 20112012, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall have made at least 75 percent of the total dollar amount of its QLICIs in areas that are (1) characterized by at least one of items (i) – (iii) on the list below for each QLICI, or (2) characterized by at least two of items (iv) –
Appears in 1 contract
Sources: Allocation Agreement
Authorized Uses of NMTC Allocation. The Allocatee shall use the proceeds of its NMTC Allocation to make investments or Reinvestments only as follows:
(a) At such time that the Allocatee has made 100 percent of its QLICIs or September 30, 20112014, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least 85 percent of the total dollar amount of its QLICIs in the types of activities listed in Schedule 1 of this Allocation Agreement.
(b) At such time that the Allocatee has made 100 percent of its QLICIs or September 30, 20112014, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least 85 percent of the total dollar amount of its QLICIs in the Service Area(s) listed in Schedule 1 of this Allocation Agreement. The Service Area listed in Schedule 1 pertains only to the Allocatee. Should the Allocatee wish to suballocate to one or more of its Subsidiary Allocatee(s), if applicable, it shall ensure that any Subsidiary Allocatee(s) enjoined to this Allocation Agreement make NMTC investments only within the respective Subsidiary Allocatee’s certified service area.
(c) If applicable, the Allocatee may transfer all or part of its NMTC Allocation to the Subsidiary Allocatees listed in Schedule 1 of this Allocation Agreement.
(d) If applicable, as listed in Schedule 1 of this Allocation Agreement, the Allocatee shall satisfy the requirements of IRC § 45D(b)(1)(B) and 26 C.F.R. 1.45D-1(c)(5) with respect to the Qualified Equity Investments it receives by making QLICIs in businesses in which persons unrelated to the Allocatee hold the majority equity interest (as defined in IRC §45D(f)(2)(B)), and as determined subsequent to the receipt of a QEI, but prior to the Allocatee making using the proceeds of that QEI to make the initial QLICI. The requirement of this Section 3.2(d) does not apply if an Allocatee becomes related to a business due to financial difficulties of the business that were unforeseen at the time the Allocatee made a QLICI in the business.
(e) By September 30, 20112014, the Allocatee shall issue at least 60 percent of the total dollar amount of its Qualified Equity Investments related to its NMTC Allocation.
(f) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 20112014, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall fulfill the requirements listed in Schedule 1 of this Allocation Agreement, pertaining to “Flexible Products”. The Allocatee shall demonstrate that 100 percent of QLICIs made in the form of loans to or investments in CDEs or QALICBs (as opposed to loan purchases or the provision of Financial Counseling and Other Services) incorporated terms and conditions that, at the time the QLICIs were made, were flexible, non-conventional, or non-conforming with reference to either the Allocatee’s underwriting guidelines or standard practice in the marketplace as documented by the Allocatee. Specifically, the Allocatee must have made QLICIs that (a) are equity or equity-equivalent financing, (b) have interest rates that are the designated percent lower than either the prevailing market rates for the particular product or the Allocatee’s current offerings for the particular product, or (c) meet the designated number of the following criteria, provided nothing in this Allocation Agreement shall be construed to require the Allocatee to engage in unsafe or unsound underwriting practices:
(i) Debt with equity features (i.e., debt with royalties; debt with warrants; convertible debt);
(ii) Subordinated debt;
(iii) Below market interest rates;
(iv) Lower than standard origination fees;
(v) A longer than standard period of interest only loan payments;
(vi) Higher than standard loan to value ratio;
(vii) A longer than standard amortization period;
(viii) More flexible borrower credit standards;
(ix) Nontraditional forms of collateral;
(x) Lower than standard debt service coverage ratio; or
(xi) Loan loss reserve requirements that are less than standard. Furthermore, to the extent that the Allocatee makes QLICIs in the form of loans to or investments in CDEs (“Recipient CDEs”), the Allocatee shall require that the Recipient CDE fulfill the “Flexible Products” requirements listed in Schedule 1 to this allocation agreement, with respect to loans and investments made by the Recipient CDEs to QALICBs.
(g) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 2011, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least the designated percentage of the total dollar amount of its QLICIs, as listed in schedule 1 of this Allocation Agreement, in Non- Metropolitan Counties.
(h) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 2011, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall have made at least 75 percent of the total dollar amount of its QLICIs in areas that are (1) characterized by at least one of items (i) – (iii) on the list below for each QLICI, or (2) characterized by at least two of items (iv) –
Appears in 1 contract
Sources: Allocation Agreement
Authorized Uses of NMTC Allocation. The Allocatee shall use the proceeds of its NMTC Allocation to make investments or Reinvestments only as follows:
(a) At such time that the Allocatee has made 100 percent of its QLICIs or September 30, 20112014, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least 85 percent of the total dollar amount of its QLICIs in the types of activities listed in Schedule 1 of this Allocation Agreement.
(b) At such time that the Allocatee has made 100 percent of its QLICIs or September 30, 20112014, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least 85 percent of the total dollar amount of its QLICIs in the Service Area(s) listed in Schedule 1 of this Allocation Agreement. The Service Area listed in Schedule 1 pertains only to the Allocatee. Should the Allocatee wish to suballocate to one or more of its Subsidiary Allocatee(s), if applicable, it shall ensure that any Subsidiary Allocatee(s) enjoined to this Allocation Agreement make NMTC investments only within the respective Subsidiary Allocatee’s certified service area.
(c) If applicable, the Allocatee may transfer all or part of its NMTC Allocation to the Subsidiary Allocatees listed in Schedule 1 of this Allocation Agreement.
(d) If applicable, as listed in Schedule 1 of this Allocation Agreement, the Allocatee shall satisfy the requirements of IRC § 45D(b)(1)(B45D(b)(l)(B) and 26 C.F.R. 1.45D-1(c)(51.45D-l(c)(5) with respect to the Qualified Equity Investments it receives by making QLICIs in businesses in which persons unrelated to the Allocatee hold the majority equity interest (as defined in IRC §45D(f)(2)(B)), and as determined subsequent to the receipt of a QEI, but prior to the Allocatee making using the proceeds of that QEI to make the initial QLICI. The requirement of this Section 3.2(d) does not apply if an Allocatee becomes related to a business due to financial difficulties of the business that were unforeseen at the time the Allocatee made a QLICI in the business.
(e) By September 30, 20112014, the Allocatee shall issue at least 60 percent of the total dollar amount of its Qualified Equity Investments related to its NMTC Allocation.
(f) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 20112014, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall fulfill the requirements listed in Schedule 1 of this Allocation Agreement, pertaining to “Flexible Products”. The Allocatee shall demonstrate that 100 percent of QLICIs made in the form of loans to or investments in CDEs or QALICBs (as opposed to loan purchases or the provision of Financial Counseling and Other Services) incorporated terms and conditions that, at the time the QLICIs were made, were flexible, non-conventional, or non-conforming with reference to either the Allocatee’s underwriting guidelines or standard practice in the marketplace as documented by the Allocatee. Specifically, the Allocatee must have made QLICIs that (a) are equity or equity-equivalent financing, (b) have interest rates that are the designated percent lower than either the prevailing market rates for the particular product or the Allocatee’s current offerings for the particular product, or (c) meet the designated number of the following criteria, provided nothing in this Allocation Agreement shall be construed to require the Allocatee to engage in unsafe or unsound underwriting practices:
(i) Debt including debt with equity features (i.e.e.g., debt with royalties; debt with warrants; convertible debt);
(ii) Subordinated debt;
(iii) Below market interest rates;
(iv) Lower than standard origination fees;
(v) A longer than standard period of interest only loan payments;
(vi) Higher than standard loan to value ratio;
(vii) A longer than standard amortization period;
(viii) More flexible borrower credit standards;
(ix) Nontraditional forms of collateral;
(x) Lower than standard debt service coverage ratio; or
(xi) Loan loss reserve requirements that are less than standard. Furthermore, to the extent that the Allocatee makes QLICIs in the form of loans to or investments in CDEs (“Recipient CDEs”), the Allocatee shall require that the Recipient CDE fulfill the “Flexible Products” requirements listed in Schedule 1 to this allocation agreement, with respect to loans and investments made by the Recipient CDEs to QALICBs.
(g) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 2011, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least the designated percentage of the total dollar amount of its QLICIs, as listed in schedule 1 of this Allocation Agreement, in Non- Metropolitan Counties.
(h) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 2011, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall have made at least 75 percent of the total dollar amount of its QLICIs in areas that are (1) characterized by at least one of items (i) – (iii) on the list below for each QLICI, or (2) characterized by at least two of items (iv) –
Appears in 1 contract
Authorized Uses of NMTC Allocation. The Allocatee shall use the proceeds of its NMTC Allocation to make investments or Reinvestments only as follows:
(a) At such time that the Allocatee has made 100 percent of its QLICIs or September 30, 20112008, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least 85 percent of its QLICIs (in terms of the total aggregate dollar amount of its QLICIs the QLICIs) in the types of activities listed in Schedule 1 of this Allocation Agreement.
(b) At such time that the Allocatee has made 100 percent of its QLICIs or September 30, 20112008, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least 85 percent of its QLICIs (in terms of the total aggregate dollar amount of its QLICIs the QLICIs) in the Service Area(s) listed in Schedule 1 of this Allocation Agreement.
(c) If applicable, the Allocatee may transfer all or part of its NMTC Allocation to the Subsidiary Allocatees listed in Schedule 1 of this Allocation Agreement.
(d) If applicable, as listed in Schedule 1 of this Allocation Agreement, the Allocatee shall satisfy the requirements of IRC § 45D(b)(1)(B) and 26 C.F.R. 1.45D-1(c)(51.45D- 1(c)(5) with respect to the Qualified Equity Investments it receives by making QLICIs in businesses in which persons unrelated to the Allocatee hold the majority equity interest (as defined in IRC §45D(f)(2)(B)), and as determined subsequent to the Allocatee making the QLICI. The requirement of this Section 3.2(d) does not apply if an Allocatee becomes related to a business due to financial difficulties of the business that were unforeseen at the time the Allocatee made a QLICI in the business.;
(e) By September 30, 20112008, the Allocatee shall issue at least 60 percent of the total dollar amount of its Qualified Equity Investments related to its NMTC Allocation.;
(f) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 20112008, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall fulfill demonstrate that it has made at least the requirements designated percent of such QLICIs as listed in Schedule 1 of this Allocation Agreement, pertaining to “Flexible Products”. The Allocatee shall demonstrate Agreement (in terms of the aggregate dollar amount of the QLICIs) that 100 percent of QLICIs made are in the form of loans to or investments in CDEs or QALICBs (as opposed to loan purchases or the provision of Financial Counseling and Other Services) incorporated using terms and conditions that, at the time each of the QLICIs were was made, were flexible, non-conventional, or non-non- conforming with reference to either the Allocatee’s underwriting guidelines or standard practice in the marketplace as documented by the Allocatee. Specifically, the Allocatee must have made QLICIs that (a) are equity including one or equity-equivalent financing, (b) have interest rates that are the designated percent lower than either the prevailing market rates for the particular product or the Allocatee’s current offerings for the particular product, or (c) meet the designated number more of the following criteriacriteria as is appropriate for the type of borrower or investee, use of loan or equity investment proceeds and transaction type, provided nothing in this Allocation Agreement shall be construed to require the Allocatee to engage in unsafe or unsound underwriting practices:
(i) Equity products;
(ii) Equity-equivalent terms and conditions;
(iii) Debt with equity features (i.e., debt with royalties; debt with warrants; convertible debt);
(iiiv) Subordinated debt;
(iiiv) Below market interest rates;
(ivvi) Lower than standard origination fees;
(vvii) A longer than standard period of interest only loan payments;
(viviii) Higher than standard loan to value ratio;
(viiix) A longer than standard amortization period;
(viiix) More flexible borrower credit standards;
(ixxi) Nontraditional forms of collateral;
(xxii) Lower than standard debt service coverage ratio; or
(xixiii) Loan loss reserve requirements that are less than standard. Furthermore, to the extent that the Allocatee makes QLICIs in the form of loans to or investments in CDEs (“Recipient CDEs”), the Allocatee shall require that the Recipient recipient CDE fulfill makes loans to or investments in QALICBs using one or more of the “Flexible Products” requirements listed in Schedule 1 to this allocation agreementcriteria set forth above for the Allocatee’s provision of flexible, with respect to loans and investments made by the Recipient CDEs to QALICBsnon-conventional, or non- confirming financing.
(g) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 2011, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least use the designated percentage of the total dollar amount proceeds of its QLICIs, as Qualified Equity Investments minimally or solely to make QLICIs in the project(s) listed in schedule Schedule 1 of this Allocation Agreement, in Non- Metropolitan Counties.
(h) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 20112008, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall have made at least 75 the designated percent of the total dollar amount of its QLICIs QLICIs, as listed in areas that are (1) characterized by at least Schedule 1 of this Allocation Agreement, with one or more of items the following criteria or programs, as of the date the Allocatee closed the QLICI transaction:
(i) – Poverty rates greater than 30 percent;
(ii) If located within a non-Metropolitan Area, median family income does not exceed 60 percent of statewide median family income or if located within a Metropolitan Area, median family income does not exceed 60 percent of the greater of statewide median family income or the Metropolitan Area median family income;
(iii) on the list below for each QLICI, or (2) characterized by Unemployment rates at least two of items 1.5 times the national average;
(iv) –Federally designated Empowerment Zones, Enterprise Communities, or Renewal Communities;
(v) U.S. Small Business Administration (SBA) designated HUB Zones, to the extent that the QLICIs will support businesses that obtain HUB Zone certification from the SBA;
(vi) Federally designated Brownfields redevelopment areas;
(vii) Encompassed by a HOPE VI redevelopment plan;
(viii) Federally designated as Native American or Alaskan Native areas, Hawaiian Homelands, or redevelopment areas by the appropriate Tribal or other authority;
(ix) Areas designated as distressed by the Appalachian Regional Commission or Delta Regional Authority;
(x) Colonias areas as designated by the U.S. Department of Housing and Urban Development;
(xi) Federally designated medically underserved areas, to the extent that QLICI activities will support health related services;
(xii) Located in a Hot Zone (defined as geographic areas designated by the Fund as having greater levels of economic distress); or
(xiii) State or local tax-increment financing districts, enterprise zone programs, or other similar state/local programs targeted towards particularly economically distressed communities. Furthermore, to the extent that the Allocatee makes QLICIs in the form of loans to or investments in CDEs, the Allocatee shall require that the recipient CDE makes loans to or investments in QALICBs using one or more of the criteria or programs set forth above in this Section 3.2(h).
(i) If applicable, the Allocatee shall require CDEs from which it purchases loans to reinvest at least the designated percent of the proceeds of such loan sales, as listed in Schedule 1 of this Allocation Agreement, in the form of QLICIs.
(j) If applicable, the Allocatee shall use at least the designated percent of its Qualified Equity Investments (in terms of the aggregate dollar amount of the Qualified Equity Investments), as listed in Schedule 1 to this Allocation Agreement, to make QLICIs.
Appears in 1 contract
Sources: Allocation Agreement
Authorized Uses of NMTC Allocation. The Allocatee shall use the proceeds of its NMTC Allocation Qualified Equity Investments to make investments or Reinvestments only as follows:
(a) At such time that the Allocatee has made closed 100 percent of its QLICIs or September 30December 31, 20112020, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least 85 percent of the total dollar amount of its QLICIs in the types of activities listed in Schedule 1 of this Allocation Agreement.
(b) At such time that the Allocatee has made closed 100 percent of its QLICIs or September 30December 31, 20112020, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least 85 percent of the total dollar amount of its QLICIs in the Service Area(s) listed in Schedule 1 of this Allocation Agreement. Should the Allocatee wish to transfer some portion of its NMTC Allocation to one or more of its Subsidiary Allocatee(s), the Allocatee shall ensure that any Subsidiary Allocatee(s) enjoined to this Allocation Agreement make QLICIs within the Service Area(s) listed in Schedule 1 of this Allocation Agreement adequate to satisfy the requirements of this subsection such that at least 85 percent of the total dollar amount of QLICIs made pursuant to this Allocation Agreement are in the Service Area(s) listed in Schedule 1.
(c) If applicable, the Allocatee may transfer all or part of its NMTC Allocation to the Subsidiary Allocatees listed in Schedule 1 of this Allocation Agreement. Such Subsidiary Allocatees must agree to all of the terms, conditions, provisions, representations, warranties, covenants, and agreements set forth in this Allocation Agreement and agree that all such terms, conditions, provisions, representations, warranties, covenants, and agreements apply to each of the Subsidiary Allocatees to the same extent as they apply to the Allocatee, except for the provisions within the Section 2 definitions of “Allocation Application,” and “Notice of Allocation;”
Section 3.1 “NMTC Allocation;” and Section 4.1, “Organization, Standing and Powers;” which apply solely to the Allocatee.
(d) If applicable, as listed in Schedule 1 of this Allocation Agreement, the Allocatee shall satisfy the requirements of IRC § 45D(b)(1)(B) and 26 C.F.R. 1.45D-1(c)(5) with respect to the Qualified Equity Investments it receives by making QLICIs in businesses in which persons unrelated to the Allocatee hold the majority equity interest (as defined in IRC §45D(f)(2)(B))) in the QALICB after a QEI is made in the Allocatee, and as determined subsequent to but before the Allocatee uses the proceeds of that QEI for making its initial QLICI in the QLICIQALICB. The CDFI Fund will assess compliance with the unrelated entities requirement at the Allocatee and Subsidiary Allocatee level (if any). The requirement of this Section 3.2(d) does not apply if an Allocatee becomes related to a business due to financial difficulties of the business that were unforeseen at the time the Allocatee made a QLICI in the business. The CDFI Fund may review any subsequent changes in the QALICB, Allocatee, or Subsidiary Allocatee’s ownership resulting in common ownership between the Allocatee (and/or Subsidiary Allocatee) and the QALICB on a case-by-case basis to determine whether a principal purpose of a transaction or a planned series of transactions is to achieve a result that is inconsistent with the purposes of this Section 3.2(d).
(e) By September 30December 31, 20112020, the Allocatee shall issue at least 60 percent of the total dollar amount of its Qualified Equity Investments related to its NMTC Allocation.
(f) If applicable, at such time that the Allocatee has made closed 100 percent of its QLICIs or September 30December 31, 20112020, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall fulfill the requirements listed in Schedule 1 of this Allocation Agreement, pertaining to “Flexible Products”. The Allocatee shall demonstrate that 100 percent of QLICIs made closed in the form of loans to or investments in CDEs or QALICBs (as opposed to loan purchases or the provision of Financial Counseling and Other Services) incorporated terms and conditions that, at the time the QLICIs were made, were flexible, non-conventional, or non-conforming with reference to either the Allocatee’s underwriting guidelines or standard practice in the marketplace as documented by the Allocatee. Specifically, the Allocatee must have made QLICIs that (a) are equity or equity-equivalent financing, (b) have interest rates that are the designated percent lower than either the prevailing market rates for the particular product or the Allocatee’s current offerings for the particular product, or (c) meet the designated number of the following criteria, provided nothing in this Allocation Agreement shall be construed to require the Allocatee to engage in unsafe or unsound underwriting practices:
(i) Debt including debt with equity features (i.e.e.g., debt with royalties; debt with warrants; convertible debt);
(ii) Subordinated debt;
(iii) Below market interest rates;
(iv) Lower than standard origination fees;
(v) A longer than standard period of interest only loan payments;
(vi) Higher than standard loan to value ratio;
(vii) A longer than standard amortization period;
(viii) More flexible borrower credit standards;
(ix) Nontraditional forms of collateral;
(x) Lower than standard debt service coverage ratio; or
(xi) Loan loss reserve requirements that are less than standard. Furthermore, to the extent that the Allocatee makes QLICIs in the form of loans to or investments in CDEs (“Recipient CDEs”), the Allocatee shall require that the Recipient CDE fulfill the “Flexible Products” requirements listed in Schedule 1 to this allocation agreement, with respect to loans and investments made by the Recipient CDEs to QALICBs.
(g) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 2011, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least the designated percentage of the total dollar amount of its QLICIs, as listed in schedule 1 of this Allocation Agreement, in Non- Metropolitan Counties.
(h) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 2011, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall have made at least 75 percent of the total dollar amount of its QLICIs in areas that are (1) characterized by at least one of items (i) – (iii) on the list below for each QLICI, or (2) characterized by at least two of items (iv) –
Appears in 1 contract
Sources: Allocation Agreement
Authorized Uses of NMTC Allocation. The Allocatee shall use the proceeds of its NMTC Allocation to make investments or Reinvestments only as follows:
(a) At such time that the Allocatee has made 100 percent of its QLICIs or September 30, 2011, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the The Allocatee shall make at least 85 percent of its QLICIs (in terms of the total aggregate dollar amount of its QLICIs the QLICIs) in the types of activities listed in Schedule 1 of this Allocation Agreement.
(b) At such time that the Allocatee has made 100 percent of its QLICIs or September 30, 2011, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the The Allocatee shall make at least 85 percent of the total authorized QLICIs (in terms of the aggregate dollar amount of its QLICIs the QLICIs) set forth in Section 3.2(a) hereof in the Service Area(s) listed in Schedule 1 of this Allocation Agreement.
(c) If applicable, the Allocatee may transfer all or part of its NMTC Allocation to the Subsidiary Allocatees listed in Schedule 1 of this Allocation Agreement.
(d) If applicable, as listed in Schedule 1 of this Allocation Agreement, the Allocatee shall satisfy the requirements of IRC § 45D(b)(1)(B) and 26 C.F.R. 1.45D-1(c)(51.45D- 1T(c)(5) with respect to the Qualified Equity Investments it receives by making QLICIs in businesses in which persons unrelated to the Allocatee hold the majority equity interest (as defined in IRC §45D(f)(2)(B)), and as determined subsequent to the Allocatee making the QLICI. The requirement At no time shall the aggregate dollar amount of this Section 3.2(d) does not apply if an Allocatee becomes QLICIs made to related to a business due to financial difficulties entities exceed 15 percent of the business that were unforeseen at the time the Allocatee made a QLICI in the business.Allocatee’s total NMTC Allocation;
(e) By September 30, 20112007, the Allocatee shall issue at least 60 percent of the total dollar amount of its Qualified Equity Investments related to its NMTC Allocation.;
(f) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 20112007, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall fulfill demonstrate that it has made at least the requirements designated percent of such QLICIs as listed in Schedule 1 of this Allocation Agreement, pertaining to “Flexible Products”. The Allocatee shall demonstrate Agreement (in terms of the aggregate dollar amount of the QLICIs) that 100 percent of QLICIs made are in the form of loans to or investments in CDEs or QALICBs (as opposed to loan purchases or the provision of Financial Counseling and Other Services) incorporated using terms and conditions that, at the time each of the QLICIs were was made, were flexible, non-conventional, or non-non- conforming with reference to either the Allocatee’s underwriting guidelines or standard practice in the marketplace as documented by the Allocatee. Specifically, the Allocatee must have made QLICIs that (a) are equity including one or equity-equivalent financing, (b) have interest rates that are the designated percent lower than either the prevailing market rates for the particular product or the Allocatee’s current offerings for the particular product, or (c) meet the designated number more of the following criteriacriteria as is appropriate for the type of borrower or investee, use of loan or equity investment proceeds and transaction type, provided nothing in this Allocation Agreement shall be construed to require the Allocatee to engage in unsafe or unsound underwriting practices:
(i) Equity products;
(ii) Equity-equivalent terms and conditions;
(iii) Debt with equity features (i.e., debt with royalties; debt with warrants; convertible debt);
(iiiv) Subordinated debt;
(iiiv) Below market interest rates;
(ivvi) Lower than standard origination fees;
(vvii) A longer than standard period of interest only loan payments;
(viviii) Higher than standard loan to value ratio;
(viiix) A longer than standard amortization period;
(viiix) More flexible borrower credit standards;
(ixxi) Nontraditional forms of collateral;
(xxii) Lower than standard debt service coverage ratio; or
(xixiii) Loan loss reserve requirements that are less than standard. Furthermore, to the extent that the Allocatee makes QLICIs in the form of loans to or investments in CDEs (“Recipient CDEs”), the Allocatee shall require that the Recipient CDE fulfill the “Flexible Products” requirements listed in Schedule 1 to this allocation agreement, with respect to loans and investments made by the Recipient CDEs to QALICBs.
(g) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 2011, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least use the designated percentage of the total dollar amount proceeds of its QLICIs, as Qualified Equity Investments minimally or solely to make QLICIs in the project(s) listed in schedule Schedule 1 of this Allocation Agreement, in Non- Metropolitan Counties.
(h) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 20112007, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall have made at least 75 the designated percent of the total dollar amount of its QLICIs QLICIs, as listed in Schedule 1 of this Allocation Agreement, in areas that are (1) characterized by at least within its Service Area with one or more of items the following criteria or programs, as of the date the Allocatee closed the QLICI transaction:
(i) – Poverty rates greater than 30 percent;
(ii) Median incomes of less than 60 percent of area median income, as measured by the Metropolitan Area in which the communities are located, or as measured by the statewide area median income if the area is not in a Metropolitan Area;
(iii) on the list below for each QLICI, or (2) characterized by Unemployment rates at least two of items 1.5 times the national average;
(iv) –Designated for redevelopment by a governmental agency;
(v) Federally designated Empowerment Zones, Enterprise Communities, or Renewal Communities;
(vi) SBA designated HUB Zones;
(vii) Designated as Native American or Alaskan Native areas, Hawaiian Homelands, or redevelopment areas by the appropriate Tribal or other authority;
(viii) Brownfields redevelopment areas;
(ix) Encompassed by a HOPE VI redevelopment plan; or
(x) Located in a Hot Zone (defined as geographic areas designated by the Fund as having greater levels of economic distress).
(i) If applicable, the Allocatee shall require CDEs from which it purchases loans to reinvest at least the designated percent of the proceeds of such loan sales, as listed in Schedule 1 of this Allocation Agreement, in the form of QLICIs.
Appears in 1 contract
Sources: Allocation Agreement
Authorized Uses of NMTC Allocation. The Allocatee shall use the proceeds of its NMTC Allocation to make investments or Reinvestments only as follows:
(a) At such time that the Allocatee has made 100 percent of its QLICIs or September 30, 2011, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least 85 percent of the total dollar amount of its QLICIs in the types of activities listed in Schedule 1 of this Allocation Agreement.
(b) At such time that the Allocatee has made 100 percent of its QLICIs or September 30, 2011, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least 85 percent of the total dollar amount of its QLICIs in the Service Area(s) listed in Schedule 1 of this Allocation Agreement.
(c) If applicable, the Allocatee may transfer all or part of its NMTC Allocation to the Subsidiary Allocatees listed in Schedule 1 of this Allocation Agreement.
(d) If applicable, as listed in Schedule 1 of this Allocation Agreement, the Allocatee shall satisfy the requirements of IRC § 45D(b)(1)(B) and 26 C.F.R. 1.45D-1(c)(5) with respect to the Qualified Equity Investments it receives by making QLICIs in businesses in which persons unrelated to the Allocatee hold the majority equity interest (as defined in IRC §45D(f)(2)(B)), and as determined subsequent to the Allocatee making the QLICI. The requirement of this Section 3.2(d) does not apply if an Allocatee becomes related to a business due to financial difficulties of the business that were unforeseen at the time the Allocatee made a QLICI in the business.
(e) By September 30, 2011, the Allocatee shall issue at least 60 percent of the total dollar amount of its Qualified Equity Investments related to its NMTC Allocation.
(f) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 2011, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall fulfill the requirements listed in Schedule 1 of this Allocation Agreement, pertaining to “Flexible Products”. The Allocatee shall demonstrate that 100 percent of QLICIs made in the form of loans to or investments in CDEs or QALICBs (as opposed to loan purchases or the provision of Financial Counseling and Other Services) incorporated terms and conditions that, at the time the QLICIs were made, were flexible, non-conventional, or non-conforming with reference to either the Allocatee’s underwriting guidelines or standard practice in the marketplace as documented by the Allocatee. Specifically, the Allocatee must have made QLICIs that (a) are equity or equity-equivalent financing, (b) have interest rates that are the designated percent lower than either the prevailing market rates for the particular product or the Allocatee’s current offerings for the particular product, or (c) meet the designated number of the following criteria, provided nothing in this Allocation Agreement shall be construed to require the Allocatee to engage in unsafe or unsound underwriting practices:
(i) Debt with equity features (i.e.e.g., debt with royalties; debt with warrants; convertible debt);
(ii) Subordinated debt;
(iii) Below market interest rates;
(iv) Lower than standard origination fees;
(v) A longer than standard period of interest only loan payments;
(vi) Higher than standard loan to value ratio;
(vii) A longer than standard amortization period;
(viii) More flexible borrower credit standards;
(ix) Nontraditional forms of collateral;
(x) Lower than standard debt service coverage ratio; or
(xi) Loan loss reserve requirements that are less than standard. Furthermore, to the extent that the Allocatee makes QLICIs in the form of loans to or investments in CDEs (“Recipient CDEs”), the Allocatee shall require that the Recipient CDE fulfill the “Flexible Products” requirements listed in Schedule 1 to this allocation agreement, with respect to loans and investments made by the Recipient CDEs to QALICBs.
(g) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 2011, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least the designated percentage of the total dollar amount of its QLICIs, as listed in schedule Schedule 1 of this Allocation Agreement, in Non- Non-Metropolitan Counties.
(h) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 2011, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall have made at least 75 percent of the total dollar amount of its QLICIs in areas that are (1) characterized by at least one of items (i) – (iii) on the list below for each QLICI, or (2) characterized by at least two of items (iv) –– (xviii) on the list below for each QLICI:
(i) Census tracts with poverty rates greater than 30 percent;
(ii) Census tracts that (a) if located within a non-Metropolitan Area, have a median family income that does not exceed 60 percent of statewide median family income; or (b) if located within a Metropolitan Area, have a median family income that does not exceed 60 percent of the greater of statewide median family income or the Metropolitan Area median family income;
(iii) Census tracts with unemployment rates at least 1.5 times the national average;
(iv) Census tracts with one of the following: (a) poverty rates greater than 25%; or (b) if located within a non-Metropolitan Area, median family income that does not exceed 70% of statewide median family income, or, if located within a Metropolitan Area, median family income that does not exceed 70% of the greater of the statewide median family income or the Metropolitan Area median family income; or (c) unemployment rates at least 1.25 times the national average.
(v) Federally designated Empowerment Zones, Enterprise Communities, or Renewal Communities;
(vi) U.S. Small Business Administration (SBA) designated HUB Zones, to the extent that the QLICIs will support businesses that obtain HUB Zone certification from the SBA;
(vii) ▇▇▇▇▇▇▇▇▇▇ sites as defined under 42 U.S.C. 9601(39);
(viii) Areas encompassed by a HOPE VI redevelopment plan;
(ix) Federally designated as Native American or Alaskan Native areas, Hawaiian Homelands, or redevelopment areas by the appropriate Tribal or other authority;
(x) Areas designated as distressed by the Appalachian Regional Commission or Delta Regional Authority;
(xi) Colonias areas as designated by the U.S. Department of Housing and Urban Development;
(xii) Federally designated medically underserved areas, to the extent that QLICI activities will support health related services;
(xiii) As permitted by IRS and related CDFI Fund guidance materials, projects serving Targeted Populations to the extent that: (a) such projects are located in non-Metropolitan Areas; (b) such projects are at least 60% owned by members of eligible Targeted Populations; (c) at least 60% of the employees are members of eligible Targeted Populations; or (d) at least 60% of the customers are members of eligible Targeted Populations;
(xiv) High Migration Rural County (defined as any county which, during the 20 year period ending with the year in which the most recent census was conducted, has a net out-migration of inhabitants from the county of at least 10 percent of the population of the county at the beginning of such period. See IRC §45D(e)(5));
(xv) State or local tax-increment financing districts, enterprise zone programs, or other similar state/local programs targeted towards particularly economically distressed communities;
(xvi) Census tracts located in non-Metropolitan counties;
(xvii) Counties for which the Federal Emergency Management Agency (FEMA) has (a) issued a “major disaster declaration” since July 15, 2005; and (b) made a determination that such County is eligible for both “individual and public assistance;” provided that the initial project investment was made within 24 months of the disaster declaration; or
(xviii) Businesses certified by the Department of Commerce as eligible for assistance under the Trade Adjustment Assistance for Firms (TAA ) Program. Furthermore, to the extent that the Allocatee makes QLICIs in the form of loans to or investments in CDEs (“Recipient CDEs”), the Allocatee shall require that the Recipient CDE use at least 75 percent of the total dollar amount of the QLICI proceeds to make loans to or investments in QALICBs in areas that are (1) characterized by at least one of items (i) – (iii) on the list above for each loan or investment, or (2) characterized by at least two of items (iv) – (xviii) on the list above for each loan or investment.
(i) If applicable, the Allocatee shall require CDEs from which it purchases loans to invest at least the designated percent of the proceeds of such loan sales, as listed in Schedule 1 of this Allocation Agreement, in the form of QLICIs.
(j) If applicable, at such time that the Allocatee has issued 100 percent of its Qualified Equity Investments or September 30, 2011, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall use at least the designated percent of the total dollar amount of its Qualified Equity Investments, as listed in Schedule 1 to this Allocation Agreement, to make QLICIs. To the extent that the Qualified Equity Investment finances loans to or investments in CDEs (“Recipient CDEs”) that are not Affiliates of or Controlled by the Allocatee, the standard set forth above in this section 3.2(j) shall be applied only to Allocatee – not to the Recipient CDEs.
(k) If applicable, at such time that the Allocatee has issued 100 percent of its Qualified Equity Investments or September 30, 2011, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall ensure that at least 20% of the housing units developed or rehabilitated as a result of its QLICIs shall be affordable to Low-Income Persons.
Appears in 1 contract
Authorized Uses of NMTC Allocation. The Allocatee shall use the proceeds of its NMTC Allocation to make investments or Reinvestments only as follows:
(a) At such time that the Allocatee has made 100 percent of its QLICIs or September 30, 2011, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the The Allocatee shall make at least 85 percent of its QLICIs (in terms of the total aggregate dollar amount of its QLICIs the QLICIs) in the types of activities listed in Schedule 1 of this Allocation Agreement.
(b) At such time that the Allocatee has made 100 percent of its QLICIs or September 30, 2011, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the The Allocatee shall make at least 85 percent of the total authorized QLICIs (in terms of the aggregate dollar amount of its QLICIs the QLICIs) set forth in Section 3.2(a) hereof in the Service Area(s) listed in Schedule 1 of this Allocation Agreement.
(c) If applicable, the Allocatee may transfer all or part of its NMTC Allocation to the Subsidiary Allocatees listed in Schedule 1 of this Allocation Agreement.
(d) If applicable, as listed in Schedule 1 of this Allocation Agreement, the Allocatee shall satisfy the requirements of IRC § Section 45D(b)(1)(B) and 26 C.F.R. 1.45D-1(c)(51.45D-1T(c)(5) with respect to the Qualified Equity Investments it receives by making QLICIs in businesses in which persons unrelated to the Allocatee hold the majority equity interest (as defined in IRC §Section 45D(f)(2)(B)), and as determined subsequent to the Allocatee making the QLICI. The requirement At no time shall the aggregate dollar amount of this Section 3.2(d) does not apply if an Allocatee becomes QLICIs made to related to a business due to financial difficulties entities exceed 15 percent of the business that were unforeseen at the time the Allocatee made a QLICI in the business.Allocatee's total NMTC Allocation;
(e) By September 30, 20112007, the Allocatee shall issue at least 60 percent of the total dollar amount of its Qualified Equity Investments related to its NMTC Allocation.;
(f) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 20112007, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall fulfill demonstrate that it has made at least the requirements designated percent of such QLICIs as listed in Schedule 1 of this Allocation Agreement, pertaining to “Flexible Products”. The Allocatee shall demonstrate Agreement (in terms of the aggregate dollar amount of the QLICIs) that 100 percent of QLICIs made are in the form of loans to or investments in CDEs or QALICBs (as opposed to loan purchases or the provision of Financial Counseling and Other Services) incorporated using terms and conditions that, at the time each of the QLICIs were was made, were flexible, non-conventional, or non-conforming with reference to either the Allocatee’s 's underwriting guidelines or standard practice in the marketplace as documented by the Allocatee. Specifically, the Allocatee must have made QLICIs that (a) are equity including one or equity-equivalent financing, (b) have interest rates that are the designated percent lower than either the prevailing market rates for the particular product or the Allocatee’s current offerings for the particular product, or (c) meet the designated number more of the following criteriacriteria as is appropriate for the type of borrower or investee, use of loan or equity investment proceeds and transaction type, provided nothing in this Allocation Agreement shall be construed to require the Allocatee to engage in unsafe or unsound underwriting practices:
(i) Equity products;
(ii) Equity-equivalent terms and conditions;
(iii) Debt with equity features (i.e., debt with royalties; debt with warrants; convertible debt);
(iiiv) Subordinated debt;
(iiiv) Below market interest rates;
(ivvi) Lower than standard origination fees;
(vvii) A longer than standard period of interest only loan payments;
(viviii) Higher than standard loan to value ratio;
(viiix) A longer than standard amortization period;
(viiix) More flexible borrower credit standards;
(ixxi) Nontraditional forms of collateral;
(xxii) Lower than standard debt service coverage ratio; or
(xixiii) Loan loss reserve requirements that are less than standard. Furthermore, to the extent that the Allocatee makes QLICIs in the form of loans to or investments in CDEs (“Recipient CDEs”), the Allocatee shall require that the Recipient CDE fulfill the “Flexible Products” requirements listed in Schedule 1 to this allocation agreement, with respect to loans and investments made by the Recipient CDEs to QALICBs.
(g) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 2011, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least use the designated percentage of the total dollar amount proceeds of its QLICIs, as Qualified Equity Investments minimally or solely to make QLICIs in the project(s) listed in schedule Schedule 1 of this Allocation Agreement, in Non- Metropolitan Counties.
(h) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 20112007, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall have made at least 75 the designated percent of the total dollar amount of its QLICIs QLICIs, as listed in Schedule 1 of this Allocation Agreement, in areas that are (1) characterized by at least within its Service Area with one or more of items the following criteria or programs, as of the date the Allocatee closed the QLICI transaction:
(i) – Poverty rates greater than 30 percent;
(ii) If located within a non-Metropolitan Area, median family income does not exceed 60 percent of statewide median family income or if located within a Metropolitan Area, median family income does not exceed 60 percent of the greater of statewide median family income or the Metropolitan Area median family;
(iii) on the list below for each QLICI, or (2) characterized by Unemployment rates at least two of items 1.5 times the national average;
(iv) –Designated for redevelopment by a governmental agency;
(v) Federally designated Empowerment Zones, Enterprise Communities, or Renewal Communities;
(vi) SBA designated HUB Zones;
(vii) Designated as Native American or Alaskan Native areas, Hawaiian Homelands, or redevelopment areas by the appropriate Tribal or other authority;
(viii) Brownfields redevelopment areas;
(ix) Encompassed by a HOPE VI redevelopment plan; or
(x) Located in a Hot Zone (defined as geographic areas designated by the Fund as having greater levels of economic distress).
(i) If applicable, the Allocatee shall require CDEs from which it purchases loans to reinvest at least the designated percent of the proceeds of such loan sales, as listed in Schedule 1 of this Allocation Agreement, in the form of QLICIs.
Appears in 1 contract
Authorized Uses of NMTC Allocation. The Allocatee shall use the proceeds of its NMTC Allocation to make investments or Reinvestments only as follows:
(a) At such time that the Allocatee has made 100 percent of its QLICIs or September 30, 2011, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least 85 percent of the total dollar amount of its QLICIs in the types of activities listed in Schedule 1 of this Allocation Agreement.
(b) At such time that the Allocatee has made 100 percent of its QLICIs or September 30, 2011, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least 85 percent of the total dollar amount of its QLICIs in the Service Area(s) listed in Schedule 1 of this Allocation Agreement.
(c) If applicable, the Allocatee may transfer all or part of its NMTC Allocation to the Subsidiary Allocatees listed in Schedule 1 of this Allocation Agreement.
(d) If applicable, as listed in Schedule 1 of this Allocation Agreement, the Allocatee shall satisfy the requirements of IRC § 45D(b)(1)(B45D(b)(l)(B) and 26 C.F.R. 1.45D-1(c)(51.45D-l(c)(5) with respect to the Qualified Equity Investments it receives by making QLICIs in businesses in which persons unrelated to the Allocatee hold the majority equity interest (as defined in IRC §45D(f)(2)(B)), and as determined subsequent to the Allocatee making the QLICI. The requirement of this Section 3.2(d) does not apply if an Allocatee becomes related to a business due to financial difficulties of the business that were unforeseen at the time the Allocatee made a QLICI in the business.
(e) By September 30, 2011, the Allocatee shall issue at least 60 percent of the total dollar amount of its Qualified Equity Investments related to its NMTC Allocation.
(f) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 2011, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall fulfill the requirements listed in Schedule 1 of this Allocation Agreement, pertaining to “Flexible Products”. The Allocatee shall demonstrate that 100 percent of QLICIs made in the form of loans to or investments in CDEs or QALICBs (as opposed to loan purchases or the provision of Financial Counseling and Other Services) incorporated terms and conditions that, at the time the QLICIs were made, were flexible, non-conventional, or non-conforming with reference to either the Allocatee’s underwriting guidelines or standard practice in the marketplace as documented by the Allocatee. Specifically, the Allocatee must have made QLICIs that (a) are equity or equity-equivalent financing, (b) have interest rates that are the designated percent lower than either the prevailing market rates for the particular product or the Allocatee’s current offerings for the particular product, or (c) meet the designated number of the following criteria, provided nothing in this Allocation Agreement shall be construed to require the Allocatee to engage in unsafe or unsound underwriting practices:
(i) Debt with equity features (i.e.e.g., debt with royalties; debt with warrants; convertible debt);
(ii) Subordinated debt;
(iii) Below market interest rates;
(iv) Lower than standard origination fees;
(v) A longer than standard period of interest only loan payments;
(vi) Higher than standard loan to value ratio;
(vii) A longer than standard amortization period;
(viii) More flexible borrower credit standards;
(ix) Nontraditional forms of collateral;
(x) Lower than standard debt service coverage ratio; or
(xi) Loan loss reserve requirements that are less than standard. Furthermore, to the extent that the Allocatee makes QLICIs in the form of loans to or investments in CDEs (“Recipient CDEs”), the Allocatee shall require that the Recipient CDE fulfill the “Flexible Products” requirements listed in Schedule 1 to this allocation agreement, with respect to loans and investments made by the Recipient CDEs to QALICBs.
(g) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 2011, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least the designated percentage of the total dollar amount of its QLICIs, as listed in schedule Schedule 1 of this Allocation Agreement, in Non- Non-Metropolitan Counties.
(h) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 2011, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall have made at least 75 percent of the total dollar amount of its QLICIs in areas that are (1) characterized by at least one of items (i) – — (iii) on the list below for each QLICI, or (2) characterized by at least two of items (iv) –— (xviii) on the list below for each QLICI:
(i) Census tracts with poverty rates greater than 30 percent;
(ii) Census tracts that (a) if located within a non-Metropolitan Area, have a median family income that does not exceed 60 percent of statewide median family income; or (b) if located within a Metropolitan Area, have a median family income that does not exceed 60 percent of the greater of statewide median family income or the Metropolitan Area median family income;
(iii) Census tracts with unemployment rates at least 1.5 times the national average;
(iv) Census tracts with one of the following: (a) poverty rates greater than 25%; or (b) if located within a non-Metropolitan Area, median family income that does not exceed 70% of statewide median family income, or, if located within a Metropolitan Area, median family income that does not exceed 70% of the greater of the statewide median family income or the Metropolitan Area median family income; or (c) unemployment rates at least 1.25 times the national average.
(v) Federally designated Empowerment Zones, Enterprise Communities, or Renewal Communities;
(vi) U.S. Small Business Administration (SBA) designated HUB Zones, to the extent that the QLICIs will support businesses that obtain HUB Zone certification from the SBA;
(vii) ▇▇▇▇▇▇▇▇▇▇ sites as defined under 42 U.S.C. 9601(39);
(viii) Areas encompassed by a HOPE VI redevelopment plan;
(ix) Federally designated as Native American or Alaskan Native areas, Hawaiian Homelands, or redevelopment areas by the appropriate Tribal or other authority;
(x) Areas designated as distressed by the Appalachian Regional Commission or Delta Regional Authority;
(xi) Colonias areas as designated by the U.S. Department of Housing and Urban Development;
(xii) Federally designated medically underserved areas, to the extent that QLICI activities will support health related services;
(xiii) As permitted by IRS and related CDFI Fund guidance materials, projects serving Targeted Populations to the extent that: (a) such projects are located in non-Metropolitan Areas; (b) such projects are at least 60% owned by members of eligible Targeted Populations; (c) at least 60% of the employees are members of eligible Targeted Populations; or (d) at least 60% of the customers are members of eligible Targeted Populations;
(xiv) High Migration Rural County (defined as any county which, during the 20 year period ending with the year in which the most recent census was conducted, has a net out-migration of inhabitants from the county of at least 10 percent of the population of the county at the beginning of such period. See IRC §45D(e)(5));
(xv) State or local tax-increment financing districts, enterprise zone programs, or other similar state/local programs targeted towards particularly economically distressed communities;
(xvi) Census tracts located in non-Metropolitan counties;
(xvii) Counties for which the Federal Emergency Management Agency (FEMA) has (a) issued a “major disaster declaration” since July 15, 2005; and (b) made a determination that such County is eligible for both “individual and public assistance;” provided that the initial project investment was made within 24 months of the disaster declaration; or
(xviii) Businesses certified by the Department of Commerce as eligible for assistance under the Trade Adjustment Assistance for Firms (TAA) Program. Furthermore, to the extent that the Allocatee makes QLICIs in the form of loans to or investments in CDEs (“Recipient CDEs”), the Allocatee shall require that the Recipient CDE use at least 75 percent of the total dollar amount of the QLICI proceeds to make loans to or investments in QALICBs in areas that are (1) characterized by at least one of items (i) — (iii) on the list above for each loan or investment, or (2) characterized by at least two of items (iv) — (xviii) on the list above for each loan or investment.
(i) If applicable, the Allocatee shall require CDEs from which it purchases loans to invest at least the designated percent of the proceeds of such loan sales, as listed in Schedule 1 of this Allocation Agreement, in the form of QLICIs.
(j) If applicable, at such time that the Allocatee has issued 100 percent of its Qualified Equity Investments or September 30, 2011, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall use at least the designated percent of the total dollar amount of its Qualified Equity Investments, as listed in Schedule 1 to this Allocation Agreement, to make QLICIs. To the extent that the Qualified Equity Investment finances loans to or investments in CDEs (“Recipient CDEs”) that are not Affiliates of or Controlled by the Allocatee, the standard set forth above in this section 3.2(j) shall be applied only to Allocatee — not to the Recipient CDEs.
(k) If applicable, at such time that the Allocatee has issued 100 percent of its Qualified Equity Investments or September 30, 2011, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall ensure that at least 20% of the housing units developed or rehabilitated as a result of its QLICIs shall be affordable to Low-Income Persons.
Appears in 1 contract
Authorized Uses of NMTC Allocation. The Allocatee shall use the proceeds of its NMTC Allocation to make investments or Reinvestments only as follows:
(a) At such time that the Allocatee has made 100 percent of its QLICIs or September 30, 20112009, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least 85 percent of its QLICIs (in terms of the total aggregate dollar amount of its QLICIs the QLICIs) in the types of activities listed in Schedule 1 of this Allocation Agreement.
(b) At such time that the Allocatee has made 100 percent of its QLICIs or September 30, 20112009, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least 85 percent of its QLICIs (in terms of the total aggregate dollar amount of its QLICIs the QLICIs) in the Service Area(s) listed in Schedule 1 of this Allocation Agreement.
(c) If applicable, the Allocatee may transfer all or part of its NMTC Allocation to the Subsidiary Allocatees listed in Schedule 1 of this Allocation Agreement.
(d) If applicable, as listed in Schedule 1 of this Allocation Agreement, the Allocatee shall satisfy the requirements of IRC § Section 45D(b)(1)(B) and 26 C.F.R. 1.45D-1(c)(51.45D- 1(c)(5) with respect to the Qualified Equity Investments it receives by making QLICIs in businesses in which persons unrelated to the Allocatee hold the majority equity interest (as defined in IRC §Section 45D(f)(2)(B)), and as determined subsequent to the Allocatee making the QLICI. The requirement of this Section 3.2(d) does not apply if an Allocatee becomes related to a business due to financial difficulties of the business that were unforeseen at the time the Allocatee made a QLICI in the business.
(e) By September 30, 20112009, the Allocatee shall issue at least 60 percent of the total dollar amount of its Qualified Equity Investments related to its NMTC Allocation.
(f) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 20112009, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall fulfill the requirements listed in Schedule 1 of this Allocation Agreement, pertaining to “Flexible Products”. The Allocatee shall demonstrate that 100 percent of QLICIs made in the form of loans to or investments in CDEs or QALICBs (as opposed to loan purchases or the provision of Financial Counseling and Other Services) incorporated terms and conditions that, at the time the QLICIs were made, were flexible, non-conventional, or non-conforming with reference to either the Allocatee’s 's underwriting guidelines or standard practice in the marketplace as documented by the Allocatee. Specifically, the Allocatee must have made QLICIs that (a) are equity or equity-equivalent financing, (b) have interest rates that are the designated at least 25 percent lower than either the prevailing market rates for the particular product or at least 25 percent lower than the Allocatee’s Applicant's current offerings for the particular product, or (c) meet the designated number at least three of the following criteria, provided nothing in this Allocation Agreement shall be construed to require the Allocatee to engage in unsafe or unsound underwriting practices:
(i) Debt with equity features (i.e., debt with royalties; debt with warrants; convertible debt);
(ii) Subordinated debt;
(iii) Below market interest rates;
(iv) Lower than standard origination fees;
(v) A longer than standard period of interest only loan payments;
(vi) Higher than standard loan to value ratio;
(vii) A longer than standard amortization period;
(viii) More flexible borrower credit standards;
(ix) Nontraditional forms of collateral;
(x) Lower than standard debt service coverage ratio; or
(xi) Loan loss reserve requirements that are less than standard. Furthermore, to the extent that the Allocatee makes QLICIs in the form of loans to or investments in CDEs (“"Recipient CDEs”"), the Allocatee shall require that the Recipient CDE fulfill makes loans to or investments in QALICBs that (a) are equity or equity-equivalent financing, (b) have interest rates that are at least 25 percent lower than the “Flexible Products” requirements listed in Schedule 1 to this allocation agreementprevailing market rates for the particular product or at least 25 percent lower than the CDE's current offerings for the particular product, with respect to loans and investments made by the Recipient CDEs to QALICBsor (c) meet at least three of criteria i-xi above.
(g) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 2011, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall make at least use the designated percentage of the total dollar amount proceeds of its QLICIs, as Qualified Equity Investments minimally or solely to make QLICIs in the project(s) listed in schedule Schedule 1 of this Allocation Agreement, in Non- Metropolitan Counties.
(h) If applicable, at such time that the Allocatee has made 100 percent of its QLICIs or September 30, 20112009, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall have made at least 75 percent of the total dollar amount of its QLICIs in areas that are (1) characterized by at least one of items (i) – - (iii) on the list below for each QLICI, or (2) characterized by at least two of items (iv) –- (xiv) on the list below for each QLICI, or (3) characterized by item (xv) on the list below as of the date the Allocatee closed the QLICI transaction:
(i) Census tracts with poverty rates greater than 30 percent;
(ii) If located within a non-Metropolitan Area, median family income does not exceed 60 percent of statewide median family income or if located within a Metropolitan Area, median family income does not exceed 60 percent of the greater of statewide median family income or the Metropolitan Area median family income;
(iii) Census tracts with unemployment rates at least 1.5 times the national average;
(iv) Federally designated Empowerment Zones, Enterprise Communities, or Renewal Communities;
(v) U.S. Small Business Administration (SBA) designated HUB Zones, to the extent that the QLICIs will support businesses that obtain HUB Zone certification from the SBA;
(vi) ▇▇▇▇▇▇▇▇▇▇ sites as defined under 42 U.S.C. 9601(39)
(vii) Areas encompassed by a HOPE VI redevelopment plan;
(viii) Federally designated as Native American or Alaskan Native areas, Hawaiian Homelands, or redevelopment areas by the appropriate Tribal or other authority;
(ix) Areas designated as distressed by the Appalachian Regional Commission or Delta Regional Authority;
(x) Colonias areas as designated by the U.S. Department of Housing and Urban Development;
(xi) Federally designated medically underserved areas, to the extent that QLICI activities will support health related services;
(xii) Located in a Hot Zone (defined as geographic areas designated by the Fund as having greater levels of economic distress);
(xiii) High Migration Rural County (defined as any county which, during the 20 year period ending with the year in which the most recent census was conducted, has a net out-migration of inhabitants from the county of at least 10 percent of the population of the county at the beginning of such period. See IRC Section 45D(e)(5));
(xiv) State or local tax-increment financing districts, enterprise zone programs, or other similar state/local programs targeted towards particularly economically distressed communities; or
(xv) Counties for which the Federal Emergency Management Agency (FEMA) has (a) issued a "major disaster declaration" since July 15, 2005; and (b) made a determination that such County is eligible for both "individual and public assistance;" provided that, for areas not located within the GO Zone, the initial project investment was made within 24 months of the disaster declaration. Furthermore, to the extent that the Allocatee makes QLICIs in the form of loans to or investments in CDEs ("Recipient CDEs"), the Allocatee shall require that the Recipient CDE makes loans to or investments in QALICBs in areas that are (1) characterized by at least one of items (i) - (iii) on the list above for each loan or investment, (2) characterized by at least two of items (iv) - (xiv) on the list above for each loan or investment, or (3) characterized by item (xv) on the list above for each loan or investment.
(i) If applicable, the Allocatee shall require CDEs from which it purchases loans to invest at least the designated percent of the proceeds of such loan sales, as listed in Schedule 1 of this Allocation Agreement, in the form of QLICIs.
(j) If applicable, at such time that the Allocatee has issued 100 percent of its Qualified Equity Investments or September 30, 2009, whichever date is earlier, and until the Allocatee redeems its first Qualified Equity Investment related to its NMTC Allocation, the Allocatee shall use at least the designated percent of its Qualified Equity Investments (in terms of the aggregate dollar amount of the Qualified Equity Investments), as listed in Schedule 1 to this Allocation Agreement, to make QLICIs. To the extent that the Qualified Equity Investment finances loans to or investments in CDEs ("Recipient CDEs") that are not Affiliates of or Controlled by the Allocatee, the standard set forth above in this section 3.2(j) shall be applied only to Allocatee - not to the Recipient CDEs.
Appears in 1 contract