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Eligible Lender [Energy]: Key Insights into Legal Definitions and Implications
Definition & Meaning
An eligible lender in the context of energy financing refers to any individual or organization that is legally authorized to provide loans. This includes a variety of entities such as commercial banks, insurance companies, investment banks, and other financial institutions. The term also encompasses any person or entity that meets specific criteria set by the Department of Energy (DOE) and includes the Federal Financing Bank. These lenders play a crucial role in funding projects that utilize innovative technologies in the energy sector.
Table of content
Legal Use & context
The term "eligible lender" is primarily used in the context of energy financing and loan guarantees. It is relevant in legal practices involving financial transactions, project financing, and energy regulations. Understanding this term is essential for individuals and businesses seeking financial support for energy projects. Users can utilize legal templates from US Legal Forms to navigate the application process for loans and guarantees effectively.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
1. A commercial bank provides a loan to a renewable energy company to develop a solar power project. This bank qualifies as an eligible lender.
2. An investment firm specializes in funding innovative energy technologies and meets the DOE's criteria, thus acting as an eligible lender. (hypothetical example)
Relevant laws & statutes
The primary regulation governing eligible lenders in the energy sector is found in Title 10 of the Code of Federal Regulations, specifically Part 609, which outlines loan guarantees for projects employing innovative technologies.
State-by-state differences
State
Differences
California
State programs may offer additional incentives for eligible lenders.
Texas
Specific regulations may apply to lenders involved in renewable energy projects.
New York
State laws may impose stricter requirements for eligible lenders.
This is not a complete list. State laws vary and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Eligible Lender
A lender authorized to provide loans under specific regulations.
Loan Guarantee
A promise by a third party to assume responsibility for a loan if the borrower defaults.
Commercial Lender
A financial institution that provides loans to businesses and individuals.
Common misunderstandings
What to do if this term applies to you
If you are seeking financing for an energy project, first determine if your lender qualifies as an eligible lender. You can explore US Legal Forms for templates that assist in the application process. If your situation is complex, consider consulting a legal professional for tailored advice.
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