Tenn. Comp. R. & Regs. 0400-60-04-.07 - ELIGIBILITY

In order to be approved for financial assistance under this program, both the applicant and the targeted structure must be deemed eligible according to criteria published by the Office of Energy Programs.

(1) Applicants for financial assistance must meet all of the following four (4) criteria:

(a) Be classified as either a small business of less than three hundred (300) employees or less than $3.5 million in annual gross sales or receipts or a unit of county or local government utilizing the loan to improve the energy efficiency of an existing building that the applicant owns, occupies or uses for a business, industrial or commercial purpose.

(b) Own, occupy or use the targeted structure in its operations; and,

(c) Be declared financially sound and capable of repaying the monies borrowed according to criteria published by the Office of Energy Programs.

(2) A structure that is to be the target for the installation of energy efficiency measures that will be financed with the proceeds of a loan under this program shall be considered an eligible structure only if it is an existing structure, at least one (1) year old, that is located within the territorial boundaries of the state of Tennessee and, is not:

(a) Classified as condemned or scheduled for demolition;

(b) Leased or rented by the applicant from another party unless the landlord has given the tenant written permission to proceed with the installation;

(c) Encumbered by a real estate sale, purchase, option, or trade agreement that is scheduled to take place prior to the maturity of the loan unless either:

1. The current occupant/debtor agrees to retire the outstanding balance of the loan before closing the agreement; or,

2. The new occupant agrees to retire the outstanding indebtedness according to the terms and conditions of the originally executed loan agreement;

(d) Included on the National Register of Historic Landmarks and Sites maintained by the U.S. Secretary of the Interior or, if included, has the approval, in writing, of the Historical Society to perform the work;

(e) Located in a wetland or special flood hazard area as designated by the Federal Emergency Management Agency; or,

(f) Encumbered by subordinate mortgages, mechanics', or materialmen's, and/or any other types of liens which would prevent the Office of Energy Programs from obtaining a security interest which is junior to no more than one security interest as collateral for a loan under the program or in an amount that would cloud the Office of Energy Programs' collateral or jeopardize the Programs' ability to collect on the unpaid balance of a loan in the event of a default.

Notes

Tenn. Comp. R. & Regs. 0400-60-04-.07

Original rules filed January 17, 2017; effective 4/17/2017. Rule renumbered from 0500-03-04.

Authority: T.C.A. §§ 4-3-510 through 4-3-515, 4-5-201 et seq., 11-1-101, and Governor Haslam's Executive Order Number 25.