Downes to head new gas finance company; Company will make unsecured loans for home improvements.WALL TOWNSHIP township: see town. , N.J.--(BUSINESS WIRE)--Nov. 13, 1996--Laurence M. Downes, chairman and chief executive officer of New Jersey Resources Corporation (NYSE NYSE See: New York Stock Exchange :NJR NJR National Joint Registry (UK) NJR New Japan Radio Corp (Japan) NJR New Jersey Resources, Inc. (stock symbol) NJR Nonjob-Routed ) and New Jersey Natural Gas Company (NJNG NJNG New Jersey Natural Gas ), has also been named chairman of the recently formed American Gas Finance Company, also known as GasFinCo, that will make unsecured loans Unsecured Loan A loan that is issued and supported only by the borrower's creditworthiness, rather than by some sort of collateral. Notes: Generally, a borrower must have a high credit rating to receive an unsecured loan. to customers for home improvements that enhance energy efficiency. More than a dozen natural gas utilities, including New Jersey Natural Gas Company, have invested about $5 million to create GasFinCo. GasFinCo's services will benefit residential customers of members of the American Gas Association (A.G.A), a Virginia-based trade association of local gas distribution companies. "By centralizing cen·tral·ize v. cen·tral·ized, cen·tral·iz·ing, cen·tral·iz·es v.tr. 1. To draw into or toward a center; consolidate. 2. our loan services through GasFinCo, we can offer our residential customers better borrowing options, and reduce our own administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. ," Downes said. "Simple, low-cost financing is one way we hope to strengthen our relationships with customers to distinguish NJNG and the other GasFinCo investors as energy industry leaders." Owners of existing one to four family dwellings will be eligible for GasFinCo loans of up to $15,000, and can take up to 10 years to repay the unsecured loan. In addition to financing installation of natural gas heating systems and water heaters, the loans could be used for kitchen remodeling remodeling /re·mod·el·ing/ (re-mod´el-ing) reorganization or renovation of an old structure. bone remodeling that would accommodate new, more energy-efficient appliances, a homeowner's share of extending a gas main to the house or the cost of removing an oil tank when switching a heating system to natural gas. Here's how it will work: A homeowner selects a contractor to install appliances or perform other work covered by a loan from GasFinCo. When the work is completed, the contractor is paid by the utility or by GasFinCo. The utility may choose to bill the customer directly or assign responsibility to GasFinCo. In either case, the customer's loan Customer's loan Agreement signed by a margin customer that allows a broker to borrow margin securities up to the level of the customer's debit balance to help cover other customers' short positions. payments, including interest, are forwarded to GasFinCo. GasFinCo will sell the loans to FannieMae. The money paid by FannieMae to GasFinCo will be used to make more loans. GasFinCo will retain the difference between the interest it charges customers and FannieMae's interest rate, allowing GasFinCo to compete with other sources of financing while earning a return. GasFinCo will begin operating in January 1997. Participating investors will make their initial loans in the first quarter of the year. Prior to becoming chairman of GasFinCo, NJNG's Downes was chairman of the A.G.A FannieMae Residential Market Task Force, which began studying the idea of creating a gas utility finance company in March 1996. He is also a member of the A.G.A board of directors. New Jersey Natural Gas Company is a local distribution company providing natural gas energy services and other energy-related services to more than 362,000 customers in central and northern New Jersey. NJNG is also a leader in capacity release and off-system sales programs, whereby its excess capacity and supply are sold to customers outside its franchise territory. CONTACT: New Jersey Natural Gas Company, Wall Township Laura Conover, 908/938-1112 David M. Kluesik, 908/938-1114 Dennis Puma, 908/938-1229 |
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