As used in this chapter, the following words and terms have the following meanings unless the context shall indicate another or different meaning or intent:

(1)(a)   “Cost of project,” means in the case of an industrial project described in subdivision (3)(a), the cost or fair market value of acquisition, whichever is lower, or the cost of construction, alteration, reconstruction, expansion or rehabilitation of an industrial project by a local industrial development corporation or by a project owner, and in the case of an industrial project described in subdivision (3)(b), the cost of acquisition by a local development corporation or by a project owner. There may be included in cost of project the costs of all financing charges, existing encumbrances, interest during construction period, engineering, architectural and legal services, plans, specifications, surveys, cost estimates, studies, and other expenses as may be necessary or incident to the development, construction, financing, and placing in operation of an industrial project.

(b)   “Cost of project,” in the case of a recreational project described in subdivision (4) means the cost or fair market value of new construction (including renovations or remodeling of existing structures if the authority determines that such renovation or remodeling adds fifty percent (50%) or more to the fair market value of the structure exclusive of the value of the land upon which it rests if any), lands, property rights, machinery, easements, franchises, fixtures, financing charges, interest, engineering and legal services, plans, specifications, surveys, cost estimates, studies, and other expenses as may be necessary or incident to the development, construction, financing, and placing in operation of a recreational project; provided, however, that in the expense of any renovations or remodeling of existing structures shall not be included in “cost of project” to the extent that expense exceeds the fair market value of the structure (exclusive of the land upon which it rests if any) as so renovated or remodeled.

(2)   “Federal agency” means and includes the United States of America, the President of the United States of America, and any department of, or corporation, agency, or instrumentality heretofore or hereafter created, designated, or established by the United States of America.

(3)(a)   “Industrial project” means lands or buildings or other real estate improvements in Rhode Island, or any interest therein, acquired and constructed, reconstructed, improved, expanded, renovated, or rehabilitated by a local development corporation or by a project owner, together with all easements and other interests in the property, provided that the industrial project is to be used:

(i)  By any industry for the manufacturing, processing, or assembling of raw materials or manufactured products, or

(ii)  For the providing of research or warehousing facilities for the benefit of any such industry, or

(iii)  An office and/or wholesale and/or retail facility, which facility is to be at least fifty-one percent (51%) owner-occupied, and provided further that the authority has determined that the industrial project or other real estate improvement will tend to provide gainful employment for the people of Rhode Island, or to prevent, eliminate, or reduce unemployment in Rhode Island, increase the tax base of the economy, diversify and expand industry so that periods of large scale unemployment and distressed times may be avoided, and generally benefit economic development in Rhode Island. An “industrial project” as defined herein may be located on leased land provided the term of the lease extends at least until the “maturity date,” as defined in this section.

(b)   “Industrial project” also means any machinery and equipment provided:

(i)  The machinery and equipment has been acquired for use in connection with any building new or otherwise, or other real estate improvement in Rhode Island, used for the manufacturing, processing, or assembling of raw materials or manufactured products or for the providing of research facilities in connection therewith, furniture and/or fixtures, or used for office and/or wholesale and/or retail purposes in a facility which is at least fifty-one percent (51%) owner-occupied;

(ii)  The authority has determined that the machinery and equipment will tend to provide gainful employment for the people of Rhode Island or to prevent, eliminate, or reduce unemployment in Rhode Island, increase the tax base of the economy and diversify and expand industry so that periods of large scale unemployment and distressed times may be avoided, and generally benefit economic development in Rhode Island;

(iii)  The owner therefore has agreed not to remove the machinery and equipment from the building or real estate improvement until the principal obligation of any mortgage on the machinery and equipment, the mortgage payments under which are insured by the authority pursuant to §?42-34-10, has been paid in full, except that the machinery and equipment may be removed from the building or real estate improvement with the prior written consent of the authority if such owner has agreed to substitute in place thereof other machinery and equipment approved by the authority and the mortgage within such reasonable period of time as the authority shall prescribe.

(c)  An “industrial project” as defined herein shall cost more than one hundred thousand dollars ($100,000); provided, however, where the authority commences to insure mortgage payments on an “industrial project” defined in subdivision (3)(b) at the same time as it commences to insure mortgage payments on an “industrial project” defined in subdivision (3)(a) it shall have the power to commence insuring mortgage payments on such “industrial project” defined in subdivision (3)(b) without limitation as to the minimum amount of one hundred thousand dollars ($100,000) provided for herein.

(d)  An “industrial project” under the provisions of subdivisions (3)(a) and (3)(b) may include a real estate improvement or machinery and equipment suitable for the abatement or control of industrial pollution to be used in connection with any buildings, real estate improvement, or machinery and equipment; provided, however, that the determinations under the provisions of subdivisions (3)(a) and (3)(b) of this section need not be made by the authority.

(4)   “Recreational project” means any building, facility, development, or improvement in Rhode Island and the interest of the owner of such building, facility, development, or improvement in and to the land upon which it may be located, provided that the owner’s interest be in fee simple or be a leasehold interest in land owned by the state of Rhode Island having a term expiring not less than ten (10) years after the date of recording the mortgage hereinafter defined, and provided the building, facility, development, or improvement is designed in whole or in part to attract tourists to this state and including, without limiting in any way the generality of the foregoing, marinas, ships, beaches, bathing facilities, ski facilities, convention facilities, hotels, motels, golf courses, camp grounds, arenas, theaters, lodges, guest cottages, and all types of facilities, and furniture and/or fixtures, related thereto as may be determined from time to time by the authority and which the authority has determined will contribute to the health and welfare of the people or will tend to improve the economy of the state, increase employment, or provide a wider tax base. A “recreational project” as defined herein shall cost more than twenty-five thousand dollars ($25,000).

(5)   “Industrial pollution” means any gaseous, liquid, or solid waste substance, or combination thereof, resulting from the operations of an industry referred to in subdivision (3)(a) of this section, which pollute the land, water, or air of Rhode Island.

(6)   “Local development corporation” means any corporation or foundation organized and operated primarily for the purposes of fostering, encouraging, and assisting the physical location, settlement, and resettlement of industrial and manufacturing enterprises or recreational enterprise within the state or promoting the industry or recreational promotion of the state, including, for recreational purposes, the Rhode Island industrial facilities corporation no part of the net earnings of which inures to the benefit of any private shareholder or individual.

(7)   “Maturity date” means the date on which the mortgage indebtedness would be extinguished if paid in accordance with periodic payments provided for in the mortgage.

(8)(a)   “Mortgage” means for a subdivision (3)(a) or (3)(b) project above a first mortgage or security agreement on an industrial project creating and constituting a first lien of record, together with bonds, notes, evidences of indebtedness, or other credit instruments issued by a mortgagor to finance such project and secured thereby; provided, however, a first mortgage shall include a second or subsequent mortgage or security agreement on an industrial project if:

(i)  The holder of such second or subsequent mortgage or security agreement is also the holder of a prior mortgage or security agreement on such industrial project under which prior mortgage or security agreement the authority is already insuring mortgage payments and;

(ii)  No other person or legal entity holds an intervening mortgage, security interest or lien on such industrial project prior to such second or subsequent mortgage or security interest; and provided further, that “mortgage” shall also mean a second mortgage or security agreement that: (A) is issued by a project owner to a local development corporation; and (B) involves a principal obligation that does not exceed forty percent (40%) of the cost of project. Industrial projects described in subdivisions (3)(a), (3)(b), and (3)(d) may be financed and secured together if the requirements of §?42-34-10 are met.

(b)   “Mortgage” means for the purpose of a subdivision (4) project above, a first mortgage (including a first preferred ship mortgage) on a recreational project together with bonds, notes, evidences of indebtedness, or other credit instruments issued by a mortgagor to finance such project and secured thereby.

(9)   “Mortgagee” means the original lender approved by the authority under a mortgage, and its successors and assigns and may include all insurance companies, trust companies, banks, building and loan associations, credit unions, savings and loan associations, investment companies, savings banks, local development corporations, individuals, executors, administrators, guardians, conservators, trustees, and other fiduciaries; including pension, retirement and profit-sharing funds; provided, however, that where there has been appointed a trustee under an indenture of trust or other similar document for the benefit of the holders of bonds or notes issued to finance an industrial project secured by a mortgage, “mortgagee” means such trustee. A local development corporation can be a second mortgagee only for a subdivision (3)(a) or (3)(b) project above if the second mortgage or security agreement is issued by the project owner to the local development corporation and the principal obligation of the second mortgage does not exceed forty percent (40%) of the cost of the project.

(10)   “Project owner” means any business entity, other than a local development corporation, that owns an industrial project.

(11)   “Mortgagor” means a local development corporation as defined herein.

(12)   “Mortgage payments” means periodic payments by the mortgagor to the mortgagee required by the mortgage, and may include interest, installments of principal, taxes and assessments, land lease rentals, mortgage insurance premiums and hazard insurance premiums, or any of them as the authority may prescribe.

(13)  “Ship” means a sailing vessel which is:

(i)  Over one hundred fifty feet (150?) in length overall;

(ii)  Registered with the United States coast guard;

(iii)  Displaces at least four hundred fifty (450) registered tons; and

(iv)  Has its hailing port in Rhode Island.