Section 457-312-7 - Terms and Conditions; Premiums, Fees and Other ChargesA. 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.94- 457 C.M.R. ch. 312, § 7