Section 457-316-6 - Terms and Conditions; Premiums, Fees and Other ChargesA. Periodic payments of principal and interest shall be established in accordance with a borrower's individual needs.B. The loan amount shall not exceed $50,000.C. Direct loans shall not exceed terms of seven (7) years.D. Additional requirements and covenants of each loan may be established, provided that each borrower shall at a 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.E. The borrower in the case of a direct loan shall pay a loan origination fee equal to 2% of the loan amount at closing and shall be responsible for the Authority's out of pocket costs and expenses of closing, administering and collecting the loan or grant. Commencing on the first anniversary date of the date of the loan and annually on the same date thereafter, the borrower shall pay to the Authority an annual loan administration fee in an amount equal to 1% of the outstanding principal balance of the loan remaining due on each such anniversary date.G. The Authority, in the sole discretion of the Chief Executive Officer, may reduce the rate of interest or increase the term of any loan including loans with original terms of seven (7) years in the event a borrower can show adverse circumstances resulting in financial hardship.94- 457 C.M.R. ch. 316, § 6