Section 457-303-10 - LOAN TERMS AND CONDITIONSA. All loans under the program, including loans made by lenders with deposits from the Authority, shall be for initial terms of six months at an interest rate of the lesser of 8% or the Prime Rate listed under "Money Rates" in the Wall Street Journal on the date the Authority issues its loan commitment. Monthly payments shall be established in accordance with the borrower's individual needs. Loans to any borrower may not exceed $50,000 in the aggregate.B. Loans or portion of loans intended to provide short term financing pending receipt of funds from other sources must be paid out when such other funds are received to the extent of such proceeds, unless otherwise approved by the chief executive officer.C. Loans which are not paid out within six months may be termed out for term of up to twenty (20) years on terms and conditions established by the chief executive officer based on the repayment ability of each borrower. In the case of loans made through lenders, the Authority may allow the lender to continue to maintain and service the loan if the lender is willing to do so, or the Authority may request an assignment of the loan and the collateral. If the lender retains the loan, the lender shall pay to the Authority an amount equal to two percent per year of the outstanding principal balance of the loan. Upon the occurrence of any default, the lender may assign the loan and collateral to the Authority and retain the amount deposited by the Authority with the lender up to the amount outstanding on the loan.D. Additional requirements and covenants of each loan may be established for each loan, provided that each borrower shall at minimum be required to maintain and repair collateral, maintain adequate insurance covering public liability and hazards, including flood insurance for borrowers located in flood plains, and comply with all applicable federal, State and local laws, regulations, ordinances and orders.E. Borrowers which willfully fail to apply loan proceeds to the purposes for which the loan was approved or which willfully fail to apply funds from other sources to reduce the financial assistance provided under this program where the financial assistance is contingent on such funds being used to reduce program loans, shall be subject to acceleration of the loan and to an additional penalty of fifty percent (50%) of the outstanding balance of the loan. After any default, the Authority may provide that the interest rate on the loan is increased to a rate not to exceed five percent (5%) over the Prime Rate listed under "Money Rates" in the Wall Street Journal on the date of the default.F. The borrower shall be responsible for the Authority's out-of-pocket costs and expenses of closing, administering and collecting loans held by the Authority.G. In the case of financial assistance provided through lenders, the lender may charge its reasonable and customary closing costs and expenses but may not charge any points or other fees without express approval of the chief executive officer. The amount of the Authority deposit shall initially equal the amount of the loan and shall be repaid to the Authority as the principal balance of the loan is reduced.94- 457 C.M.R. ch. 303, § 10