June 2010 Archive

Sebastian Bond of Brunswick, Maine has a head start on his college education thanks to his parents Andrew and Melanie, and the Harold Alfond College Challenge Grant. Bond is the 5,000th Maine baby to receive the Grant.  As with all Maine babies under one year of age, Sebastian was eligible for a $500 grant from the Alfond Scholarship Foundation to start a NextGen College Investing Plan® (NextGen®) account.

Born at 9:30 a.m. on May 6, 2010 at Mid Coast Hospital in Brunswick, Sebastian is one of approximately 13,500 Maine resident babies born each year who can receive the Alfond Grant as long as they sign up before their first birthday.  The Harold Alfond College Challenge was created to help families aspire to and prepare for higher education by starting early.  Since 2008, the Alfond Scholarship Foundation has contributed $2,500,000 to tax-advantaged NextGen college savings accounts.

 “One of the best gifts for us to give as parents is to enable Sebastian to grow up and be what he wants to be, and this is one way for us to help him get started at a very early age,” said Andrew Bond, Sebastian’s father.  “We heard about the Alfond Grant when it originally made the news and it was reinforced as a good idea in our birth classes and at our doctor’s office.”

 “I had to pay for school myself, and knowing how difficult it was for me, I would rather he not have to go through that same struggle,” said Melanie Bond, Sebastian’s mother.

“The Alfond Grant gets you to start thinking about saving early on.  If the money had not been there to start the account, it would have been easier for us to put off saving,” said Andrew Bond.

Harold Alfond, former owner of the Dexter Shoe Company, believed all Maine children deserve the opportunity to succeed.  By establishing this grant program before he passed away in November 2007, he encouraged aspiration and access to higher education for all Maine’s children.

There is no requirement to add personal funds to the accounts, though it was Mr. Alfond’s hope that families, businesses and even communities would invest in these children’s futures.  According to the Finance Authority of Maine (FAME), administrator of the program, 40% of all Maine babies born since January 1, 2009 are being enrolled before their first birthday and over 25% of all families are making additional contributions to their babies’ accounts.

Families may request NextGen application materials be mailed to them directly or they may download them by going to www.500forbaby.org.  Any questions about the Alfond Grant or NextGen should be directed to FAME 1-800-228-3734 or info@500forbaby.org.

Items of Interest for June 2010:

College Access Challenge Grant

Opportunity Maine Reminder

The Harold Alfond College Challenge Enrolls 5,000th Baby

The Finance Authority of Maine (FAME) and the Maine Office of Securities announced today that Maine has entered into a settlement with OppenheimerFunds, Inc. on behalf of certain NextGen College Investing Plan® (NextGen) participants.  The settlement ends an investigation by the Office of Securities in conjunction with the Office of the Attorney General into the management of certain investments offered by OppenheimerFunds, Inc. within the NextGen College Investing Plan. 

All OppenheimerFunds portfolios in NextGen were terminated by FAME in July 2009.

“This settlement, similar to those reached by other states with OppenheimerFunds, resolves the matter and returns money to the accounts of families so they may continue saving for college,” said FAME Chief Executive Officer Beth Bordowitz.  “We will continue to vigilantly monitor all funds offered in the NextGen plan for the benefit of Maine families and other account holders seeking to prepare for future college expenses.”

“I am pleased that the investigation by my Office and the Office of the Attorney General resulted in a settlement favorable to Maine residents,” said Securities Administrator Judith Shaw.  “I commend FAME for its diligence in overseeing funds critical to the continued success of Maine’s youth.”

“My staff and the Office of Securities continue to work together to protect Maine investors,” stated Attorney General Janet T. Mills.  “I appreciate FAME’s assistance throughout the investigation and the leading role that FAME and the Securities Administrator played in reaching this favorable result.”

The settlement will divide $6,030,000 among certain account holders based on their exposure to Oppenheimer Core Bond Fund from January 1, 2008 through March 31, 2009.  A relatively small portion of the overall NextGen investments was invested in that Fund. 

Affected investors who maintain a NextGen account will have their allocation of the settlement credited directly to their NextGen account.  Others will be eligible to receive a check.  FAME will be notifying affected account holders about the distribution of the settlement.

More information is available at www.me-edsettlement.com.

NextGen was created by the Maine Legislature in 1999 as a qualified tuition program under Section 529 of the Internal Revenue Code.  It is a tax-advantaged investing program of the Finance Authority of Maine designed to help families prepare for higher education expenses.  Merrill Lynch is the program manager and underwriter of the plan.  Anyone can open an account, regardless of income or residency, and assets can be used at any accredited U.S. post-secondary institution.  Matching grants are available to eligible families.

The Maine Office of Securities protects Maine investors by investigating and prosecuting violations of the securities laws; licensing broker-dealers, agents, investment advisers, and investment adviser representatives; and reviewing registration statements and exemption filings for securities issuers that are seeking to sell in Maine.  To learn more information about the office, please visit http://www.maine.gov/pfr/securities/index.shtml

NextGen is a Section 529 plan administered by FAME.  Merrill Lynch, Pierce, Fenner & Smith Incorporated, a registered broker-dealer, member SIPC, is the program manager and underwriter. Before investing you should carefully consider the investment objectives, charges, expenses and risks of investing in the NextGen Plan.  You should also consider whether your or the designated beneficiary’s home state offers any state tax or other benefits that are only available for investments in such state’s 529 plan.  Request a Program Description from your Maine bank or financial advisor, or call FAME at 1-800-228-3734 and read it carefully.

The Board of Directors of the Finance Authority of Maine (FAME) today approved commercial loan insurance on separate bank loans for two Maine companies, AS & CB Gould and Sons, Inc. of Cornville, and WahlcoMetroflex of Lewiston.  FAME’s actions help the companies create and retain a total of 131 Maine jobs.

FAME’s Commercial Loan Insurance Program insures a portion of a loan to a business made by a participating financial institution.  Pro-rata insurance covers a certain percentage of a lender’s loss in the event of default and liquidation.

“The approval of loan insurance for these two Maine companies illustrates the diversity of Maine businesses that FAME can assist.  Creating and maintaining jobs in both the forest products and manufacturing sectors are essential to the Maine economy,” stated FAME Chief Executive Officer Beth Bordowitz. 

AS & CB Gould, Inc., formed in 1978, operates three mechanized logging operations in the state.  The company has over thirty employees and includes as customers Dirigo Timberlands, Osito, and Plum Creek.  FAME will provide 90% pro-rata loan insurance on a five-year term loan by Camden National Bank in the amount of $1,153,000, as well as 25% leveraged loan insurance on a fifteen-year loan by the bank in the amount of $117,000.  These facilities are in addition to 90% pro-rata loan insurance on a Camden National term loan in the amount of $325,000 already approved by FAME.  The loan insurance will help the company refinance existing debt and purchase equipment for its tree harvesting operations.  FAME’s actions will help the company create four full-time positions and retain thirty Maine employees.

“Gould appreciates FAME’s swift assistance in the form of loan insurance, as well as its past assistance through other loan insurance.  The new equipment is critical to helping the company improve its cash flow and improve operations going forward,” stated company chief executive officer Michael Gould. 

FAME also approved 80% pro-rata loan insurance on a $1,250,000 Androscoggin Bank line of credit for WahlcoMetroflex in Lewiston.  For over fifty years, the company has been a global leader in designing and manufacturing diverters, dampers and expansion joints.  The underlying insured bank loan will provide a revolving line of credit to help the company secure manufacturing contracts.  FAME’s actions will help the company retain ninety-seven Maine jobs.  FAME has provided previous financing assistance to the company, including past help for the current management team to buy the company out of a former parent company’s bankruptcy. 

“WahlcoMetroflex appreciates FAME’s continued support of our company,” stated John Powell, president and chief executive officer of the company.  “We look forward to a bright future employing our cutting-edge technology and industry knowledge.”

AUGUSTA — The Finance Authority of Maine (FAME) is pleased to announce the recipients of the 2010-2011 Educators for Maine Loans and Robert C. Byrd Honors Scholarships. 

“FAME congratulates this year’s recipients of the Educators for Maine Loan and the Robert C. Byrd Honors Scholarship.  They represent the best of Maine and forecast a bright future for our state as a whole,” stated Beth Bordowitz, FAME’s Chief Executive Officer.

The Educators for Maine Loan Program is a competitive, merit-based loan program for Maine students pursuing careers in teaching, including speech pathology and child development.  The loan may become forgivable for recipients who provide return service as educators in Maine.  The loan is awarded to seniors graduating from high school who are residents of Maine, have demonstrated academic achievement, and intend to become Maine educators after graduating from college.  The loan is also awarded to current college or university students who are residents of Maine, are enrolled in an education program of study, have demonstrated academic achievement, intend to become Maine educators after graduating from college, and do not currently hold state certification.  Students are also evaluated based on their community involvement, awards and specials honors received, as well as the style and content of an essay. 

For the 2010-2011 academic year, forty Maine students were selected to receive the $3,000 loan.  Twenty undergraduate students enrolled in education programs and twenty graduating high school seniors intending to major in education were selected to receive the $3,000 award.  The loan is renewable for each year of study, up to a maximum of $12,000.  Recipients were recently notified by letters personally signed by Governor John E. Baldacci.

FAME is also pleased to announce the recipients of this year’s Robert C. Byrd Honors Scholarship.  The Robert C. Byrd Honors Scholarship program is a highly competitive, merit-based scholarship that is funded by federal dollars and offered to students in all fifty states.  Awards are made to graduating high school seniors who are residents of Maine and have demonstrated significant academic achievement in a rigorous program.  Students are also evaluated based on their community involvement, awards and specials honors received, as well as an essay.  While the number of awards varies from year to year, at least one recipient is selected from each Maine county annually. 

For the 2010-2011 academic year, twenty-seven students were selected to receive the $1,500 Byrd Honors Scholarship.  The award is renewable for up to four years.

FAME has posted more information about the Educators for Maine Loan Program and the Robert C. Byrd Honors Scholarship on its Web site:  www.famemaine.com.  The information includes names of 2010-2011 recipients (who have authorized such disclosure), as well as their high schools and home towns.

The Finance Authority of Maine (FAME) is displaying the work of Alec Hartman, a professional Maine artist specializing in photography. 

FAME CEO Beth Bordowitz stated: “FAME is fortunate to be able to brighten its hallways with beautiful art while simultaneously supporting a young and creative artist like Alec.” 

Hartman currently resides in East Vassalboro and has been photographing nature and wildlife since childhood. He has produced award-winning photography that is displayed in galleries throughout Maine, as well as in London, England.  

Hartman’s work is noted for the human-like expressions of its wildlife subjects and his ability to capture the extraordinary beauty in everyday landscapes. A collection of his photography can be found on his website at www.alecphoto.com.  

FAME hopes to bring visibility to the achievements of all Maine artists by providing an opportunity to exhibit their artwork and to inspire passion about art in others. 

The public may view the Hartman exhibition at the FAME office Monday through Friday from 8:00 a.m. to 5:00 p.m. The FAME building is located at 5 Community Drive, Augusta, Exit 112 off Interstate 95.  The exhibit is open to the public until mid-July.   

To learn more about FAME art exhibits and openings or, if you are an artist who would like to have your work considered for exhibition, please contact FAME at 1-800-228-3734.