Section 830-RICR-10-15-2.6 - Terms and ConditionsA. Interest - Loan will bear interest at the rate of one (1.00%) percent per annum. Interest is to be calculated on a three hundred sixty (360) day year and twelve (12) thirty (30)-day months on the outstanding loan balance. Interest payments are semi-annually on March 1 and September 1.B. Loan Fees - The Bank will charge a Service Fee of one half of one (0.50%) percent per annum of the outstanding principal of any loan payable semi-annually at each interest payment date. All out of pocket closing costs, i.e., borrowers cost of issuance, borrower counsel fees and other closing costs will be paid by the borrower out of loan proceeds.C. Amortization - Amortization will begin within fifteen (15) months after the loan closing and payments will be made annually thereafter to completely discharge the Loan within sixty (60) months of the loan closing. D. Prepayments - The loan may be prepaid by the borrower at any time but may be subject to a prepayment penalty based on the cost of reinvesting the prepayment or any other negative financial impact to the Bank.E. Security - Loans will have a pledge of: 1. general revenues and/or dedicated wastewater system revenues.2. may be secured by any other assets and upon such other terms and conditions as the Bank deems appropriate to protect the interest of the other participants in the loan programs of the Bank, other creditors of the Bank, bondholders, or the finances of the Bank. a. The obligations of the Borrowers may be subject to and dependent upon appropriations being made by the Borrower for such purposes.F. Progress Payments - Progress payments for each project will be made through an account established by the Borrower. Loan proceeds will be transferred monthly from the Borrower account for each borrower based upon approved Requisition Forms submitted to the Bank. Upon receipt of the Requisition Form, the Bank will verify: 1. that a Certificate of Approval has been issued by DEM;2. the vendor is identified in the contract; and3. there is sufficient availability in the Borrower account to make the payment. Payments will be made directly to the vendor and/or the Borrower for reimbursements by the Bank, and a "paid" stamped copy of the Requisition Form will be sent to the Borrower and DEMG. Certificate of Approval - Prior to disbursement of funds by the Bank, the Bank must be in receipt of the Certificate of Approval by the DEM of the Borrower's proposed project(s) pursuant to R.I. Gen. Laws Title 46-12.2 and rules and regulations promulgated thereunder.830 R.I. Code R. 830-RICR-10-15-2.6