§ 36-302. Definitions.

Amortization schedule means an amortization schedule of C-PACE payments necessary to repay the C-PACE Loan, which is attached to the C-PACE certificate.

Borrower means (i) a person as defined in section 1-230 of the State Code (including a non-profit entity) that is an owner of a property, which voluntarily obtains a C-PACE loan under the program, resulting in a C-PACE assessment being levied on the tax records of a Property and a C-PACE lien being recorded on a property, or (ii) a successor in title to borrower.

Borrower certification means a notarized certificate from borrower, certifying that (i) borrower is (a) current on all loan payments secured by a lien on the property, (b) current on real estate tax and personal property tax payments, (c) current on all federal, state and local taxes and that there is no federal income tax lien, judgment lien, or other involuntary lien against the property, and (d) not insolvent or in bankruptcy or foreclosure proceedings, and (ii) the title of the property is not in dispute, as evidenced by a title report or title insurance commitment from a title insurance company acceptable to program administrator and/or capital provider.

C-PACE means commercial property assessed clean energy.

C-PACE Act means Virginia's clean energy financing law, codified at Section 15.2-958.3 of State Code.

C-PACE agreement means the C-PACE assessment and financing agreement executed by borrower, capital provider, and the city, which establishes the terms, conditions, responsibilities and obligations of each party in connection with the C-PACE loan, a form of which C-PACE Agreement is attached to this article.

C-PACE Amendment means an amendment to levy and lien of C-PACE assessment, executed by capital provider without consent from borrower, as permitted in the C-PACE documents, which C-PACE amendment shall be recorded in the clerk's Office to evidence each amendment to the C-PACE loan and C-PACE lien, a form of which C-PACE amendment is attached to the C-PACE agreement.

C-PACE assessment means a voluntary, special assessment in the C-PACE loan amount, levied against a property at a borrower's request, to cover the debt service and recurring fees of a C-PACE loan.

C-PACE assignment means an assignment of levy and lien of C-PACE assessment executed by capital provider from time to time, which shall be recorded in the clerk's office to evidence capital provider's assignment of the C-PACE loan and C-PACE lien, a form of which C-PACE assignment is attached to the C-PACE agreement.

C-PACE certificate means a certificate of levy and lien of C-PACE assessment, which shall (i) be executed by borrower, capital provider, and the city, (ii) include an amortization schedule, (iii) include a borrower certification, and (iv) be recorded in the clerk's office to evidence the C-PACE loan and C-PACE lien, a form of which C-PACE certificate is attached to the C-PACE agreement.

C-PACE documents means the C-PACE agreement, C-PACE note, C-PACE certificate, C-PACE assignment (if any), C-PACE amendment (if any), and such other documents as determined by capital provider.

C-PACE expenses means construction, development and consulting costs directly related to a C-PACE loan, including without limitation, the cost of labor, materials, machinery, equipment, plans, specifications, due diligence studies, consulting services (e.g., engineering, energy, financial and/or legal expenses), program fees, C-PACE loan fees, capitalized interest, interest reserves and/or C-PACE transaction, underwriting, and closing costs.

C-PACE lien means the voluntary, irrevocable, special assessment lien levied against the property pursuant to the C-PACE Act and at borrower's request, as security for the C-PACE loan, which (i) is pari passu (i.e., of equal priority) with the city real estate tax lien; (ii) as to the current C-PACE payment that is due and any delinquent C-PACE payments, is senior to (a) all other special assessment liens, and (b) all previously recorded senior liens, provided a lender consent is recorded for each such senior lien; (iii) shall run with title to the property and shall not be extinguished by a foreclosure; and (iv) is evidenced by the C-PACE certificate, as may be amended and assigned from time to time in accordance with the this article and the C-PACE documents.

C-PACE loan means a loan made under the program by a capital provider to a borrower to finance eligible improvements to a property in accordance with the C-PACE Act, this article, the C-PACE documents, and the program guidelines.

C-PACE loan amount means the aggregate amount of a C-PACE loan, inclusive of principal, interest, and any financed fees, costs, and/or expenses (including C-PACE expenses), as provided in the C-PACE documents.

C-PACE note means a promissory note executed by borrower made payable to capital provider in the original principal amount of the C-PACE loan, including without limitation, any and all modifications, restructurings, extensions, consolidations, amendments and/or assignments thereof, a form of which C-PACE note is attached to the C-PACE agreement.

C-PACE payments means the periodic, installment payments of the C-PACE loan, due and payable by borrower to capital provider to repay the C-PACE loan in such amounts and at such times as described in the C-PACE agreement, the C-PACE certificate, the amortization schedule, and the C-PACE amendments (if any).

Capital provider means (i) a third party capital provider that has been approved by program administrator in accordance with the program guidelines to originate a C-PACE loan, or (ii) the current holder of a C-PACE loan.

City means the City of Lynchburg, Virginia, which includes the director of financial services, assessor or other city officials that levy, assess, collect and/or enforce taxes (including real estate taxes) for the city.

City Code means the Code of the City of Lynchburg, 1981, as amended to date and as it may be hereafter amended.

Clerk's office means the Clerk's Office of the Circuit Court of the City of Lynchburg, Virginia.

Delinquent C-PACE payment means any C-PACE payment that was not paid by borrower when due, which shall include without limitation, all accrued interest, late fees, and penalties incurred pursuant to the C-PACE documents.

Eligible improvement means any improvement, renovation, addition, construction, installation, modification of or to, a property or a building located on a property, if designed to (i) facilitate renewable energy production and distribution, (ii) reduce energy consumption, (iii) reduce water consumption, and/or (iv) facilitate resiliency and/or stormwater management, which eligible improvements include without limitation, the types of eligible improvements listed in section 32.3-3 below.

Lender consent means an executed consent and subordination agreement from each senior lender having a senior lien on the property, which shall be recorded in the clerk's office in connection with the C-PACE loan closing.

PACE means property assessed clean energy.

Program means the city C-PACE financing program established to provide C-PACE loans to borrowers in accordance with the C-PACE Act, this chapter, the C-PACE documents, and the program guidelines.

Program administrator means (i) an independent third party (authorized by written contract with the city), or (ii) a designated city official, which, in either (i) or (ii) above, possesses the authority to administer the program as provided by the State Code, the C-PACE Act, this chapter, and the program guidelines.

Program fees means the fees authorized by the Act and charged to borrowers to cover the costs to design and administer the program, including compensation of program administrator and recovery of expenses incurred by the city.

Program guidelines means a comprehensive document that establishes the procedures, eligibility rules, responsibilities, disclosures, program fees, restrictions, underwriting criteria, and other requirements promulgated, imposed and enforced by program administrator or program manager for the governance of the program, as amended from time to time.

Program manager means the city manager or such person designated in writing by the city manager to supervise the program and act as liaison with program administrator.

Project means the construction or installation of eligible improvements on property.

Property means commercial, assessable real estate located in the City, with all buildings located or to be located thereon, whether vacant or occupied, improved or unimproved, and regardless of whether such real estate is currently subject to taxation by the city, excluding (i) a residential dwelling with fewer than five dwelling units, and (ii) a condominium project as defined in section 55.1-200 of the State Code.

Real estate tax means the local tax on real estate which the city levies pursuant to Title 58.1, Chapter 32 of the State Code, and chapter 36 of the City Code.

State code means the Code of Virginia (1950), as amended to date and as it may hereafter be amended.

Virginia means the Commonwealth of Virginia.

( Ord. No. O-19-047 , § 1, 12-10-19)

( Ord. No. O-19-047 , § 1, 12-10-19)