28- 248 C.M.R. ch. 102, § IV
Where the Treasurer determines that the application is complete and that the applicable criteria are met, he may designate the loan as a qualified loan and may make the supporting investment of State funds in the financial institution. The investment shall be made for no longer than a one year term (the investment period) and at an interest rate which enables the financial institution to make the loan or loans included in its application and approved by the Treasurer at the interest rate specified in the application. In no event shall the investment be made at a rate less than 0 percent or at a rate more than 2 percent per year below the rate of return otherwise obtainable from that financial institution had the State funds been otherwise invested, as determined by the Treasurer.
Upon designation by the Treasurer as a qualified loan, the Authority shall notify the financial institution of such designation. Thereafter, the financial institution shall notify the Authority that it has made or will make a qualified loan or loans, whereupon the financial institution and the Treasurer shall enter into a written agreement pursuant to which the Treasurer shall make the supporting investment. The agreement shall set forth the rate of interest of the supporting investment which shall, except as limited below, be 2 percent below the current rate of interest offered by the financial institution as of the date of the agreement between the Treasurer and the financial institution, but in any event not less than 0 percent.
28- 248 C.M.R. ch. 102, § IV