Section 178-501-6 - Loan Terms, Conditions and AdministrationA. Loans shall be in an amount which is reasonable to acquire the adaptive equipment as shown by materials submitted with the application. In no event shall any single or cumulative loan(s) for the same project exceed $100,000, nor shall any single or cumulative loan(s) to or for the benefit of the same borrower exceed $100,000. For the purposes of this subsection (A), the term "borrower" shall include an applicant.B. Loans shall bear an annual interest rate approved and reviewed by the board. The interest rate shall not exceed the maximum rate as allowed by State of Maine Law. Interest shall be fixed as of the date of issuance of the loan commitment. The board shall approve interest rates to be applied by the financial services provider within the parameters established in this subsection (B) and corresponding underwriting guidelines, at least annually.C. The term of each loan shall be based on the applicant's circumstances and the useful life of the collateral. The term of a construction or new construction loan shall not exceed 30 years from the date of the first disbursement. The term of any other type of loan shall not exceed 20 years.D. The board or its financial services provider may require collateral. Guarantees will generally be required of any individual or entity that holds (i) 20% or more of the ownership interests in any non-individual entity that is an applicant or borrower or (ii) 5% or more of the ownership interests in any non-individual entity which is an applicant or borrower and receives substantial income from the entity. Guarantees may also be required of other individuals or entities, including, without limitation, owners of more than 20% of the ownership interests in any entity which in turn owns 20% or more of any applicant or borrower. In no event however, shall any one individual or entity, as borrower or as guarantor or as any combination thereof, become liable to the board for an amount in excess of $250,000 in the aggregate. Except as specifically approved by the financial services provider, collateral shall be located within the State, or, if mobile, shall be registered within the State if the State registers such mobile collateral.E. The financial services provider will prepare the loan documentation. Execution of all loan documentation in form and content satisfactory to the board shall be a condition precedent to the payment of loan proceeds to the applicant. The borrower shall agree to terms and conditions in the loan documentation substantially standard to the industry or as may be reasonably required by the financial services provider and authorized by the board.F. The following terms and conditions shall apply to construction and new construction loans, in addition to terms and conditions typical of such loans: 1) The board or its designee has the right to inspect all construction during reasonable hours.2) Disbursements may be made in multiple installments, which may consist of one or more two-party checks.3) After the first disbursement, the borrower shall be required to provide lien waivers from appropriate contractors evidencing receipt of payments for work performed prior to any further disbursement.4) Interest only shall be due on the loan proceeds disbursed until such time as the loan is fully disbursed. The financial services provider may set a time after which it may require commencement of payment of principal and interest on the loan proceeds disbursed, if the construction is not completed within a reasonable time.G. A borrower's rights under the loan commitment are non-assignable.H. A loan is in default when any payment is 30 days past due or upon the occurrence of any event of default as defined in the loan documents. When a loan is in default, the financial services provider shall provide the borrower with legally sufficient notice of default and opportunity to cure the default. If the borrower fails to cure the default within the allotted time, the financial services provider shall take all appropriate action provided under law and the loan documents.I. The board may charge reasonable administration, loan servicing, and documentation fees to borrowers.94- 178 C.M.R. ch. 501, § 6