§ 113.206. Prerequisite materials.
(a) As a prerequisite to final settlement, the volunteer company shall deliver the promissory note, security agreement and financing statements describing the specific equipment, which shall be filed with the Corporation Bureau, Department of State and the prothonotary’s office in the county where the equipment is physically housed or used, and other documents in conformity with 13 Pa.C.S. Division 9 (relating to secured transactions; sales of accounts, contract rights and chattel paper) necessary to create and perfect a security interest in favor of the OSFC in all personalty acquired in whole or in part by the volunteer company with proceeds from the OSFC loan.
(b) If a portion of the proceeds of an OSFC loan is used by the volunteer company for the purchase or rehabilitation of a motor vehicle, the volunteer company shall supply to the OSFC the title to the vehicle being purchased or rehabilitated and the document necessary to record a valid lien encumbrance in favor of the OSFC. If the OSFC is supplying secondary and minority funding, the OSFC will become holder of a second encumbrance. When the OSFC is providing primary and majority or equal funding, the OSFC will become the holder of a first lien encumbrance.
Source The provisions of this § 113.206 adopted December 23, 1982, effective December 25, 1982, 12 Pa.B. 4333; amended December 18, 1992, effective December 19, 1992, 22 Pa.B. 6019. Immediately preceding text appears at serial page (153428).
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