Section 900.110  Purpose of Guaranteed Participating Loans

Guaranteed Participating Loans made to financial intermediaries shall be solely for the purpose of supporting on-loans to eligible exporters to finance either pre-exports or eligible exports.  At any one time, each eligible exporter may only have a maximum of $500,000, in the aggregate, of outstanding on-loans or commitments for on-loans.  The maximum on-loans, or commitments for on-loans, for each eligible exporter shall be measured by the principal amount of all outstanding on-loans, and all unexpired on-loan commitments for the eligible exporter as of the date the application for a guaranteed participating loan is received by the Authority.  A guaranteed participating loan shall be available only where the financial intermediary demonstrates that it is necessary to stimulate or facilitate the making of an on-loan at terms that are reasonably competitive with similar loans available in other states or countries, and where the granting of such guaranteed participating loan would be in accordance with the Act and this Part.