Code of Maine Rules
94 - INDEPENDENT AGENCIES
457 - FINANCE AUTHORITY OF MAINE (FAME)
Chapter 101 - LOAN INSURANCE PROGRAM
Section 457-101-7 - Additional Terms for Working Capital Loans

Universal Citation: 94 ME Code Rules ยง 457-101-7

Current through 2024-38, September 18, 2024

A. Insurance Limits. Notwithstanding any provision hereof to the contrary:

(1) The Authority may authorize insurance on working capital loans up to a maximum $2,500,000 of insurance liability with respect to any one loan or any Borrower when insurance is authorized on a Pro-Rata basis, not to exceed 90% of the original loan amount, and subject to the additional limitations of this section; or

(2) The Authority may authorize insurance on working capital loans up to a maximum of $2,500,000 of insurance liability with respect to any one loan or any Borrower, when insurance is authorized on a Leveraged basis, not to exceed 20% of the original loan amount, and subject to the additional limitations of this section.

B. Collateral and Loan to Value Standards. The loan must be secured by a first lien on eligible accounts receivable and/or inventory meeting the applicable loan to value standards set forth in the Credit Policy, as it may be amended from time to time.

C. [Repealed Effective September 2, 2007]

D. Lender Eligibility. In addition to any other Lender requirements in this Rule, in order for an application for loan insurance for a working capital loan to be approved, the Authority must approve the monitoring and servicing policies and procedures the Lender intends to apply to the loan in question, and must be satisfied that the lender is sufficiently experienced and capable of effectively implementing such policies and procedures.

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