Code of Maine Rules › 94 - INDEPENDENT AGENCIES › 457 - FINANCE AUTHORITY OF MAINE (FAME) › Chapter 312 - INTERMEDIARY RELENDING PROGRAM › Section 457-312-7 - Terms and Conditions; Premiums, Fees and Other Charges

Current through 2024-29, July 17, 2024
A. Periodic payments of principal and
				interest shall be established in accordance with a Borrower's needs as
				determined by the authority. The Authority may defer principal and interest
				payments as it deems necessary.
B.
				Loans shall not exceed terms of twenty (20) years in the case of loans
				primarily secured by real estate, ten (10) years in the case of loans primarily
				secured by machinery and equipment and seven (7) years for other
				loans.
C. All loans shall accrue
				interest at the highest prime rate of interest as published in the Wall Street
				Journal as of the date the Commitment to make the Loan is issued. Exceptions
				may be made by the Authority in cases where the Borrower demonstrates a need
				for a lower rate of interest and such lower rate of interest is justified by
				the magnitude of the public benefit to be derived from the project.
D. For all loans over $30,000, real property
				serving as primary security will be appraised by a qualified appraiser. The
				chief executive officer may require an appraisal on real estate serving as
				secondary collateral. For all other types of property, a valuation shall be
				made using any recognized, standard technique for the type of property involved
				(including standard reference manuals).
E. 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 the 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. Assignment of key person life insurance will
				ordinarily be required.
F. The
				Borrower shall pay a nonrefundable commitment fee of 0.5% upon acceptance of
				the Commitment. The Borrower shall pay loan origination fee equal to 1.5% 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,
				including but not limited to all fees which may be incurred by the Authority to
				assure professional oversight and management of construction or rehabilitation
				work and all reasonable attorney's fees of in-house and/or outside counsel.
				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 ten dollars ($10.00) per
				month.
G. Ordinarily, the Authority
				will obtain the unconditional unlimited guaranty of all individuals or entities
				with 20% or greater ownership interest in the Borrower, directly or
				indirectly.
H. Remaining loan
				balances may be accelerated in the event the Borrower moves all or
				substantially all of its operations from the State.