1 Del. Admin. Code § 402-5.0

Current through Register Vol. 28, No. 5, November 1, 2024

Section 402-5.0 - Forms of Assistance

5.1 Interest Rate

5.1.1 The interest rate on a direct loan with a term up to and including one hundred twenty (120) months shall be sixty percent (60%) of the prime rate published in The Wall Street Journal.

5.1.2 The interest rate on a direct loan with a term of more than one hundred twenty (120) months shall be seventy percent (70%) of the prime rate published in The Wall Street Journal.

5.1.3 The interest rate on a participation loan with a term up to and including one hundred twenty (120) months shall be sixty percent (60%) of the participating bank's commercial rate.

5.1.4 The interest rate on a participation loan with a term of more than one hundred twenty (120) months shall be seventy percent (70%) of the participating bank's commercial rate.

5.2 Maturity

5.2.1 Loans for which the proceeds are used for working capital purposes shall not have a maturity of greater than five (5) years.

5.2.2 Loans for which the proceeds are used for purposes other than working capital and the purchase or renovation of real estate shall not have a maturity of greater than ten (10) years.

5.2.3 Loans for which the proceeds are used to purchase or renovate real estate shall not have a maturity greater than twenty (20) years.

5.3 Repayment

5.3.1 Loans will be amortized and repaid to the Authority on a monthly basis. Any amortization of Loan repayment other than monthly principal and interest shall be at the sole discretion of the Authority.

5.3.2 Participations will be amortized to mirror those of the financial institution from which the Participation was purchased.

1 Del. Admin. Code § 402-5.0

16 DE Reg. 662 (12/01/12)