Section 457-318-7 - Loan Terms and Conditions; Premiums, Fees and Other ChargesA. Periodic payments of principal and interest on direct loans shall be established in accordance with section 3(C) or 4(B) and a recipient's individual needs.B. Direct loans shall not have repayment periods that exceed ten (10) years.C. Additional requirements and covenants of each direct loan may be established, provided that each recipient shall at a minimum be required to maintain and repair collateral, maintain adequate insurance covering public liability, hazard, and flood insurance if recipient is located in a flood plain, and comply with all applicable federal, State and local laws, regulations, ordinances and orders.D. In the case of a grant, the Authority shall be entitled to charge the interest earnings on the Waste Oil Clean-up Fund an origination and processing fee equal to $200.00. In the case of a direct loan, the Authority shall be entitled to charge the interest earnings on the Waste Oil Clean-up Fund an origination and processing fee equal to 2% of the loan amount at closing, and the recipient shall be responsible for the Authority's out of pocket costs and expenses of closing, administering and collecting the loan. Commencing on the first anniversary date of the date of the loan and annually on the same date thereafter, the Authority shall be entitled to charge the interest earnings on the Waste Oil Clean-up Fund 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.F. The Authority, in the sole discretion of the Chief Executive Officer, may reduce the rate of interest, increase the term of any loan including loans with original terms of ten (10) years, or otherwise change the terms of loans in the event a recipient can show adverse circumstances resulting in financial hardship.94- 457 C.M.R. ch. 318, § 7