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

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E. [Repealed]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.