Section 457-317-6 - TERMS AND CONDITIONS; PREMIUMS, FEES AND OTHER CHARGESA. Periodic payments of principal, together with interest at the annual rate of 2%, shall be established in accordance with a Borrower's individual needs. In all cases the first principal payment shall be required to be made within one year of Project completion, except loans under §3(C), in which case the first principal payment shall be required to be made within 1 (one) year of loan closing.B. Direct loans shall not exceed terms of 20 (twenty) years or the useful life of the assets financed, whichever is less.C. Additional requirements and covenants of each loan may be established by the Authority, 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.D. The Borrower shall pay a loan origination fee to the Authority 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. CLOSING COSTS, BUT NOT LOAN ORIGINATION OR LOAN ADMINSTRATION FEES, MAY BE FINANCED. 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.E. Any loan made pursuant to this Program may be assumed by a purchaser of the premises on which the Project is located, provided that the loan may only be assumed by a for-profit entity, which would be eligible for a loan on the same terms and conditions as the original Borrower. The eligibility of any such assuming entity shall be determined in the discretion of the Authority.F. All Project work must be completed by or under the direction of a person approved by the Department (and, if required, licensed under applicable law), provided however that the Department, the Authority and each of their agents and employees shall have no liability, and do not and shall not make any representations or warranties (express or implied), with respect to any Project, including without limitation, liability for defective design, defective construction, inadequate financing to complete the Project or the Project's fitness for any purpose. The Department shall require evidence and certification from the Borrower of compliance with these conditions, and provide the same to the Authority.94- 457 C.M.R. ch. 317, § 6