Code of Maine Rules
94 - INDEPENDENT AGENCIES
457 - FINANCE AUTHORITY OF MAINE (FAME)
Chapter 204 - SECONDARY MARKET PROGRAM
Section 457-204-19 - Premiums, Fees and Other Charges

A. In addition to other requirements, no Program commitment shall be effective until the Authority has received a commitment fee calculated as up to 2% of the insured portion of the insured Eligible Loan, for Eligible Loans other than loans insured or guaranteed under Chapter 103

B. In addition to other requirements, the Authority shall be paid a Program premium either calculated as up to 2% of the insured portion of the Eligible Loan scheduled (other than in cases of partial or full prepayment) to be outstanding on each anniversary date of the Eligible Loan or on some other date or the actual balance owed by the borrower if larger, or a one-time fee payable at inception calculated on a present-value basis. The premium shall be paid in advance for such period as specified in the Program Documents.

C. The Authority will be entitled to the full amount of the premium over the term of the Loan Note Guarantee. If the Eligible Loan is paid without loss or insurance payment by the Authority before the end of the loan term or if the Loan Note Guarantee is terminated without loss to the Authority before the end of the maximum term of the contract, the Authority may waive the balance of the premium claimed or, if the full premium was paid in advance without any discount, then the Authority may remit the balance of the premium. In order to assure that the Authority will receive the full premium, the Authority may provide in the Program Documents that the balance of any premium due may be deducted from the insurance payment of that premium escrow or investment arrangements be made.

D. The Holder's right to receive payment with respect to a Certificate is not affected by the Lender's or Borrower's failure to pay the required insurance premiums to the Authority.