Section 457-316-3 - EligibilityA. To be eligible for financial assistance under the program a borrower must demonstrate each of the following: 1. The project is technologically feasible.2. The project will contribute to a reduction of or more efficient use of fossil fuels.3. A reasonable likelihood that the borrower will be able to repay the loan.4. A reasonable likelihood that the borrower will not be able to obtain the funds necessary to undertake all or any part of the project from any other source, including an insured loan pursuant to 10 MRSA §1026-A.B. 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 Clean Vehicle Fuel Program. 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.
C. 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.D. A borrower may obtain a direct loan for a project that has already been completed if the borrower provides satisfactory evidence of compliance with each of the following criteria. 1. The project was completed no later than nine months previous to the date the complete application is received by the Authority.2. The loan is made to the same individual or entity, who operated the project at the time the project was undertaken.94- 457 C.M.R. ch. 316, § 3