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Page 25 of � � <br /> PART XII <br /> FINANCIAL ASSISTANCE STANDARDS <br /> In addition to complying with the requirements of Part VII , the Grantee shall <br /> abide by the following standards which will govern the performance of its <br /> officers, employees, or agents in contracting with or otherwise procuring all <br /> assets, property, or services with funds provided under this Agreement or with <br /> program income derived from Loans or qualified security Investments. <br /> 1. Loans -- In determining if financial assistance in the form of a Loan is <br /> to be provided to a third party beneficiary, the Grantee shall determine <br /> whether there will be an expected improvement in production levels, <br /> quality of output or timeliness of delivery and that the number of jobs <br /> to be created or retained is reasonable in relation to the grant funds <br /> requested. <br /> 2. Qualified Security Investments -- In determining if financial assistance <br /> i n the f orm of a qual i f i ed securi ty I nvestment i s to be made to a thi rd <br /> party beneficiary, the Grantee shall find that there is a likelihood of <br /> commercial feasibility given the state of development of the proposed <br /> product, process, or technical device, and that there is a likelihood of <br /> increased job opportunities in the near term as a result of the security <br /> Investment. <br /> 3. Applications -- An application for a Loan or a security Investment <br /> submitted to the Grantee may require facts about the third party <br /> beneficiary' s history, job opportunities, stability of employment, past <br /> and present condition and structure, actual and pro-forma income <br /> statements, present and future market prospects and management <br /> qualification, and any other facts deemed material to the financing <br /> r u he Grantee shall obtain an such additional information <br /> eq est. T y <br /> concerning the application as it deems necessary and diligent. <br /> 4. Financial Analysis -- The Grantee shall , on the basis of the application, <br /> and any other information, prepare a report concerning the <br /> creditworthiness of the proposed third party beneficiary, the financial <br /> commitment of other investors, the manner in which the proposed business <br /> Project will advance the economy of the state, and the soundness of the <br /> proposed financial assistance agreement. <br /> 5. Other Financing -- Assistance from Program Proceeds shall be awarded to a <br /> third party beneficiary only if other financing with respect to the <br /> business Project is provided. Other financing may be in the form of any <br /> loan, equity position, convertible preferred stock, letter of credit, <br /> guarantee, bond purchase or any other form approved by the Grantee. <br /> 6. Adequate Security -- Loans or security Investments using Program Proceeds <br /> may be secured by first or second positions on real or personal property, <br /> by royalty payments, by personal notes or guarantees, or by any other <br /> security satisfactory to the Grantee. <br /> - 25 - <br />