Code of Maine Rules › 94 - INDEPENDENT AGENCIES › 457 - FINANCE AUTHORITY OF MAINE (FAME) › Chapter 305 - OIL STORAGE FACILITY AND TANK PROGRAM › Section 457-305-6 - Terms and Conditions; Premiums, Fees and Other Charges

Current through 2024-29, July 17, 2024
A. Periodic payments of principal and
				interest on loans shall be established in accordance with a borrower's
				individual needs.
B. Loans shall
				not exceed terms of ten (10) years.
C. Additional requirements and covenants of
				each loan or grant 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.
D. The borrower in the case of a loan or
				grant shall pay a loan origination fee equal to 1% of the loan amount at
				closing and shall be responsible for the Authority's attorneys fees (whether of
				the Authority's legal division or outside counsel) and all out of pocket costs
				and expenses of underwriting closing, administering and collecting the loan or
				grant. The Authority will also be entitled to collect from the Underground Oil
				Storage Replacement Fund, a loan underwriting fee of 1% of the requested loan
				amount for every loan application received whether or not the loan is approved
				or made, plus any reasonable out of pocket underwriting costs not paid by the
				borrower. 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
				collect from the Underground Oil Storage Replacement 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, provided
				however that no annual payment shall be collected during any period of
				deferment pursuant to sections 3(C)(2) and 3(C)(9) or in the case of any
				grant.
E. [Repealed]
F. Any loan made pursuant to this program may
				be assumed by a purchaser of the premises from which the facility or tank is
				removed, 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 by the Chief Executive Officer.
G. Removal or disposal of any underground oil
				storage tank must be completed by or under the direction of a person certified
				by the State Board of Underground Oil Storage Tank Installers or by
				professional fire fighting personnel in accordance with 38 M.R.S.A.
				§566-(A)(5). All replacement tanks or facilities must comply with Chapter
				691 of the Rules of the State Department of Environmental Protection and
				applicable law. All disposal of tanks and facilities and installation of
				equipment related to air quality improvement shall be in accordance with
				applicable laws. The Authority may require evidence of compliance with these
				conditions.
H. 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 change a loan to a grant in the event a borrower can show
				adverse circumstances resulting in financial hardship.