Section 830-RICR-10-15-3.6 - Terms and ConditionsA. The property owner repayment stream will be credited towards the community's repayment obligation of the CSSLP loan.B. Rate - The CSSLP loan to the local governmental unit from the Bank will be at a rate of zero percent (0%).The subsequent loans to property owners will carry an interest rate of zero percent (0%) and service fees equivalent to 1% of the outstanding balance of the property owners loan to be distributed as follows: 1. Servicer 0.5% Property Owner Loan Service Fee 2. Bank 0.5% Community Loan Service Fee3. 1.0% Total CSSLP Feesa. In addition to the service fees set forth above, the property owner shall also pay a loan origination fee (Loan Origination Fee) at the time of closing to the Servicer in the amount of three hundred dollars ($300.00).b. (CSSLP loan rates and fees are subject to periodic changes as per § 3.10 of this Part.)C. Community Fees - The local governmental unit will be responsible for its own out of pocket closing costs, i.e. borrower's counsel fees and financial advisor fees.D. Amortization - The loan repayments from the property owners will provide the repayments to the Bank. As the primary borrower, the local government unit is responsible for any shortfall or default in the repayments from the property owners. Amortization on the local governmental unit's loan will begin on the first day of the quarter after the loan closing and on a quarterly basis thereafter. The Servicer will collect payments from the property owners and make payments to the Bank on behalf of the local governmental unit.E. 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, the cost of prepaying outstanding bonds of the Bank, or any other negative financial impact to the Bank.F. Security - Loans will have a pledge of 1. general revenues; and/or2. may be secured by any other assets and upon such other terms and conditions as the Bank deems appropriate to protect the interests of the other participants in the loan programs of the Bank; bondholders; other creditors of the Bank; bondholders; or the finances of the Bank.a. The obligations of the Borrower may be subject to and dependent upon appropriations being made by the Borrower for such purposes.G. Loan Advances - The local governmental unit will indicate in written form an estimate of its yearly requirement for septic system or substandard system repairs or cesspool closures. As loans to property owners are originated, the Bank will advance the necessary amount for disbursement for approved project costs. RI Housing will act as paying agent on behalf of the local governmental unit for payments to contractors/property owners for approved project costs.H. Community Specific Criteria for Property Owners Loans - The community may apply specific property owner loan criteria such as; number of estimates needed from licensed septic system installers or cesspool closure contractors; maximum number of housing units per structure allowed access to CSSLP; owner-non-owner-occupied borrowers; whether inhabitants of areas planned for sewer extension are eligible; and other such specific requirements. The community may not raise or lower the current property owner CSSLP fee of 1% but may combine the CSSLP with other sources of money so as to provide a greater dollar amount available for loans or to provide a greater economic incentive for property owners to repair or replace the failed systems. Any additional criteria applied by the local governmental unit cannot negate or otherwise overrule any federal and state laws and regulations which apply to the CSSLP.I. Ineligible Project Costs - Eligibility shall be subject to any restrictions mandated by the EPA.J. On-site Wastewater Management Plan/Certificate of Approval - Prior to entering into a loan agreement the Borrower must have a Certificate of Approval ("CA") from the RIDEM for the Borrower's On-site Wastewater Management Plan.830 R.I. Code R. 830-RICR-10-15-3.6