Code of Maine Rules
94 - INDEPENDENT AGENCIES
457 - FINANCE AUTHORITY OF MAINE (FAME)
Chapter 311 - ECONOMIC RECOVERY PROGRAM
Section 457-311-6 - Terms and Conditions; Premiums, Fees and Other Charges

A. Periodic payments of principal and interest shall be established in accordance with a borrower's needs. The authority may defer principal and interest payments as necessary.

B. Loan terms shall not exceed five (5) years, although interim payments may be based on amortizations of up to twenty (20) years in the case of loans primarily secured by real estate, up to ten (10) years in the case of loans primarily secured by machinery and equipment and up to seven (7) years for other loans.

C. All loans shall accrue interest at Wall Street prime plus 2% fixed on the date of the Commitment. 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. The authority may require payments in addition to or in place of interest, which may include royalties or additional payments based on sales, net cash flow or other financial measures and rights to equity in the business. Such additional payments may be required in situations where the risk of providing the financing is such that additional payments are reasonably required to provide a return appropriate to the authority's risk.

D. 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.

E. The borrower 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. The authority shall also be entitled to collect from the 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. The authority shall also be entitled to collect from the fund an annual loan administration fee in an amount equal to 2% of the outstanding principal balance of the loan remaining due on each anniversary date of each loan. At the authority's election, the loan administration fee may be calculated and collected on a monthly or quarterly basis.-