Section 457-301-9 - Loan Terms and ConditionsA. Loans to applicants shall not exceed the lesser of ten thousand dollars ($10,000) or an amount which is reasonable under the circumstances in accordance with the purposes of the Act. Two or more applicants may not combine loans to the same business enterprise to exceed the loan maximum.B. The loan shall bear a maximum interest rate which shall be fixed at two (2) percentage points below the New York prime rate of interest as listed in the Wall Street Journal on the date the commitment is issued by the Authority. In no event will the Job-Start interest rate exceed twelve percent (12%), provided however, that the chief executive officer may require that the interest rate after default will be a maximum of five (5) percentage points greater than the initial rate on the defaulted loan.C. The term of each loan shall be based on applicant need, the business plan and the useful life of the collateral securing the loan.D. The Authority may require such collateral as may be available, including, in appropriate cases, a mortgage on real estate, a security agreement in personal property or personal guarantees. Except as specifically approved by the chief executive officer, 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 Authority will prepare the loan documentation, and execution of all loan documentation in form and content satisfactory to the Authority shall be a condition precedent to the payment of loan proceeds to the applicant. Loan closings shall take place at a mutually agreed upon location.F. In the event that the Authority has provided for the community action agency to administer the Maine Job Start Program and to control a portion of the job start revolving loan fund, then the provisions of subparagraphs A, B, C, D and E shall apply to the community action agency instead of the Authority, mutatis mutandis, and with regard to sub-paragraph B, the community action agency shall set the rate of interest for the loan, but in no event shall the rate exceed the lesser of (a) the New York prime rate of interest plus four (4) percent per annum, or (b) twelve (12) percent per annum.94- 457 C.M.R. ch. 301, § 9