A. The "economic development revolving fund" is created within the authority. The fund shall be administered by the authority as a separate account and may consist of such subaccounts as the authority deems necessary to carry out the purposes of the fund. The authority may establish procedures for administering the fund in accordance with the Statewide Economic Development Finance Act.
B. Except as otherwise provided in the Statewide Economic Development Finance Act, money from payments of principal of, interest on and other fees or charges paid to the authority in connection with economic development revolving fund bonds, loans, project revenue bonds purchased with money on deposit in the fund, loan participations and loan guarantees shall be deposited in the fund.
C. Money in the economic development revolving fund is appropriated to the authority to:
(1) pay the reasonably necessary administrative and other costs incurred by the authority in evaluating, processing, originating and servicing economic development revolving fund bonds, loans, project revenue bonds, loan participations and loan guarantees;
(2) purchase loan participations for projects;
(3) make loans for projects;
(4) make loan guarantees for projects; and
(5) purchase project revenue bonds.
D. Money in the economic development revolving fund that is not needed for immediate disbursement, including money held in reserve, may be deposited or invested in the same manner as other funds administered by the authority.
E. Money on deposit in the economic development revolving fund may be designated as a reserve for economic development revolving fund bonds issued and for financing assistance provided from the fund by the authority pursuant to the Statewide Economic Development Finance Act and the authority may covenant in any resolution or trust indenture to maintain and replenish the reserve from money deposited in the fund.
F. Money in the economic development revolving fund may be used to purchase project revenue bonds issued by the authority pursuant to the Statewide Economic Development Finance Act, which are payable from any designated source of revenues or collateral. Purchasing and holding the bonds shall not result in cancellation or merger of the bonds, notwithstanding the fact that the authority as the issuer of the bonds is obligated to make the required debt service payments and the fund held by the authority is entitled to receive the required debt service payments.
History: Laws 2003, ch. 349, § 13; 2005, ch. 103, § 12.
ANNOTATIONSCompiler's notes. — Laws 2006, ch. 69, § 1, effective March 6, 2006, authorized the New Mexico finance authority, pursuant to Sections 6-25-6 and 6-25-13 NMSA 1978, to provide financing assistance from the economic development revolving fund to eligible entities for certain standard projects, subject to detailed analysis, final approval and specific terms and conditions established by the authority.
Laws 2009, ch. 237, § 1, effective April 7, 2009, authorized the New Mexico finance authority to provide financing assistance in the form of loan participations with private lenders for up to forty-nine percent of total individual project financing, not to exceed $5,000,000 per project, from the economic development revolving fund to eligible entities for standard projects subject to detailed analysis, final approval and specific terms and conditions established by the authority.
The 2005 amendment, effective April 4, 2005, changed "statewide loan participation fund" and "fund" to "economic development revolving fund" and provided that fees or charges paid to the finance authority in connection with economic development revolving fund bonds, loans, project revenue bonds purchased with money in the economic development revolving fund and loan guarantees shall be deposited in the fund in Subsection B; provided that money in the fund is appropriated to pay costs incurred by the finance authority in evaluating and processing bonds, loans, and loan guarantees in Subsection C(1); deleted the authority to use money to purchase securities to assist in financing projects in Subsection C(2); and authorized the use of money in the fund to make loans, loan guarantees and purchase project revenue bonds in Subsections C(3) through (5).