004-2 Wyo. Code R. § 2-6
(a) Risk threshold. The State Treasurer is authorized to invest only permanent and inviolate funds in IDBs pursuant to W.S. 9-4-715(m). Accordingly, the State Treasurer's risk threshold for these state funds must be relatively low, and the State Treasurer will take necessary measures to reduce risks associated with IDB investments.
(b) Insurance requirements. Insurance requirements shall vary based on the type of industrial development project which is the subject of the IDB but, at a minimum, general liability and property insurance shall be required in amounts and with terms that are acceptable to the State Treasurer. At the sole discretion of the State Treasurer, other types of insurance may be required based on the type of project being financed and/or the property which serves as collateral for the IDB, such as business interruption, flood, earthquake, etc.
(c) Interest rate. The State Treasurer shall establish the interest rate paid on IDBs purchased under this program, taking into consideration the recommendation of the Wyoming Business Council. The bonds shall bear interest at a rate commensurate with the risk. The interest rate shall be a fixed or adjustable rate, indexed to the prime or ten-year treasury bill rate, as determined by the state treasurer and as recommended by the Wyoming Business Council; but in no case shall the interest rate on an IDB be less than the average yield for the five prior fiscal years earned by the permanent fund or funds for which the IDB is purchased.
(d) Subordinate financing. The IDB documents shall require that the State maintain a first priority lien on all collateral and no subordinate financing may be placed on any collateral securing the IDB without the written consent of the State Treasurer.
(e) Financial covenants. The State Treasurer may require that the bond documents include financial covenants with which the applicant must comply for the term of the IDB. Such covenants may include standards relating to debt service coverage, net worth, leverage, interest coverage or any other financial metrics determined by the State Treasurer necessary to insure the strength and performance of the applicant.
(f) Differing terms. In his or her sole discretion, the State Treasurer may require terms for the purchase of the IDB that are different than those recommended by the Wyoming Business Council, but in no case less stringent.
004-2 Wyo. Code R. § 2-6