(a)

1. (1) The application for the Bond Guaranty Program must be filed with the Arkansas Economic Development Commission a minimum of thirty (30) days prior to the next meeting of the Arkansas Economic Development Council, which is regularly held on the third Thursday of each month.
2. (2) The applicant should check with the Business Finance Unit for meeting dates.

(b) Each application should contain or be accompanied by information and exhibits as follows:

1. (1) A description of the:

   1. (A) Total amount of the financing involved;
   2. (B) Purpose thereof; and
   3. (C) Portion for which the guaranty is requested;
2. (2) A description of the site, including the total acreage, and a verification of its fair market value (appraisal or other satisfactory evidence);
3. (3) A general description of the improvements to be made;
4. (4) A written estimate of cost of construction;
5. (5) A general description of the machinery and equipment to be included in the project;
6. (6) A verification of cost of machinery and equipment (e.g., quotes from suppliers or written estimate by a recognized authority not in regular employ of company);
7. (7) If existing facilities are involved, written evidence of the current fair market value thereof (appraisal or other satisfactory evidence);
8. (8) A written statement by an officer of the company as to the average number of employees expected within three (3) years after operations are commenced;
9. (9) Projected financial statements for the first three (3) years’ operation of the project, containing estimates of earnings and expenses and year-end balances;
10. (10) A description of the capital stock of the company (classes, amounts authorized, amounts outstanding, capital paid in);
11. (11) A history of the company, description of business, and length of time in business;
12. (12) Officers’ names, ages, and business experience;
13. (13) Directors’ names, ages, and business affiliation or profession;
14. (14) Amount of the company’s stock owned by each officer and director, by class, and the percentage of outstanding stock of each class owned by all officers and directors as a group;

15. (15)

    1. (A) Copies of audited annual financial statements for the most recent three-year period including such statements of the parent if:

(i) A subsidiary is to operate the proposed industrial facilities; and

1. (ii) The parent is to guarantee performance by its subsidiary.

   1. (B) Statements that are more than ninety (90) days old must be accompanied by interim statements;
2. (16) Written evidence that the Act No. 9 bonds are not saleable without the guaranty;
3. (17) A commitment to pay a one-time premium payment in the amount of five percent (5%) of the principal amount of the Act No. 9 bonds to be guaranteed, or three percent (3%) of the total debt service, whichever is greater, with payment to be made before or simultaneously with the issuance of the guaranty;
4. (18) A written statement to the effect that none of the bonds will be purchased or owned by the company; and

5. (19) The commission and/or the Arkansas Economic Development Council may, if it so elects, require as conditions to the issuance of guaranty, all or any part of the following:

   1. (A) That all or certain officers or stockholders execute and deliver to the trustee, or the commission, their individual personal written guarantees;

   2. (B) That all or certain officers:

      1. (i) Deliver to the trustee certificates representing the shares of the capital stock (of all classes) of the company owned by them; and
      2. (ii) Execute and deliver to the trustee “stock pledge agreements” on forms commonly used by the trustee for that purpose;
   3. (C) That each or certain specified officers of the company will obtain life insurance upon his or her life, of a type and issued by a company satisfactory to the trustee and to the commission;
   4. (D) Restrictions as to declaring and paying dividends;
   5. (E) Restrictions as to preferential treatment of or making advances, loans, or payments to any other company or organization directly or indirectly controlled by or affiliated with the company;
   6. (F) Salary and bonus restrictions;

   7. (G) Restrictions as to loans to:

      1. (i) Officers;
      2. (ii) Directors;
      3. (iii) Stockholders; or
      4. (iv) Employees;
   8. (H) Restrictions as to incurring indebtedness or encumbering properties;
   9. (I) Restrictions as to issuance of additional capital stock;
   10. (J) Restrictions as to capital improvements and acquisitions; and
   11. (K) Restrictions as to minimum limits on size of corporate new worth.