Section 457-309-5 - Loan Terms and Conditions, Premiums, Fees and Other ChargesA. Periodic payment of principal and interest shall be established.B. The loan amount shall not exceed $100,000.C. The loan term shall not exceed seven (7) years.D. The interest rate on each loan shall be determined based on the amount of the total Project financing contributed (other than working capital financing or financing collateralized by accounts receivable, inventory or good will) to the Project from sources other than the Waste Reduction and Recycling Loan Fund. Such source of funds must be confirmed to the satisfaction of the Chief Executive Officer. The loan interest rate shall be determined as follows: | Rate | Financing Contributed From Other Sources |
| 4% | 50% or more |
| 8% | Less than 50% |
In the event of default the Authority may assess interest at the prime rate plus 2% from the date of any such default.
E. Additional requirements and covenants of each loan may be established, provided that each borrower shall at minimum be required to maintain and repair collateral, maintain adequate insurance covering public liability, hazard, and flood insurance if borrower is located in a flood plain, and comply with all applicable federal, State and local laws, regulations, ordinances and orders. Each borrower shall also be required to maintain such environmental liability insurance as may be required by the Chief Executive Officer.F. The borrower shall pay a loan origination fee equal to 2% of the loan amount at closing and shall be responsible for any out-of-pocket costs and expenses of closing, administering and collecting the loan.94- 457 C.M.R. ch. 309, § 5