Sec. 44.88.525. Conditions of debt refinancing guarantee.
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Sec. 44.88.525. Conditions of debt refinancing guarantee.
The authority may not guarantee refinanced debt
(1)unless the refinancing
(A)is necessary to extend substantial debt payments over a longer period of time, thereby improving the applicant's net cash flow and working capital position consistent with the useful life of the assets being refinanced;
(B)assists with short-term debt or cash expenditures when lenders will not extend reasonable longer terms to the applicant; and
(C)creates additional economic opportunity or improves the viability of the borrower rather than just reducing the liability of the lender; or
(2)unless the refinancing is necessary to place a permanent loan subsequent to an interim loan for financing of the project.