Code of Maine Rules
94 - INDEPENDENT AGENCIES
457 - FINANCE AUTHORITY OF MAINE (FAME)
Chapter 320 - BETR REIMBURSEMENT LOAN PROGRAM
Section 457-320-5 - Terms and Conditions; Premiums, Fees and Other Charges
Current through 2024-13, March 27, 2024
A. The maximum loan amount for any borrower is 90% of the amount of the BETR reimbursement for which the borrower is predetermined to be eligible.
B. The Authority may provide loans for less than 90% of the amount of BETR reimbursement for which the borrower has been predetermined to be eligible, if the Authority determines:
C. All loans shall accrue interest at Wall Street prime plus 2% fixed on the date of the Loan Commitment.
D. 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.
E. The borrower will be required to execute the Bureau's Form 800, as completed by the Bureau based on the borrower's application, at closing.
F. All BETR reimbursement payments will be made co-payable to the Authority and the borrower. BETR reimbursement checks will be sent directly to the Authority. The loan agreement will include a limited power of attorney authorizing the Authority to endorse the BETR reimbursement check on behalf of the borrower. The Authority will send the borrower a check for the difference between the BETR reimbursement check received and all amounts owed to the Authority, including without limitation, principal, interest, fees and costs, within 10 business days of receipt of the BETR reimbursement check from the Bureau. The borrower will be required to execute a pledge agreement providing the Authority a first lien on the BETR reimbursement and such other commercial loan documents containing such terms and conditions as the Authority customarily includes in its loan documents.
G. 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.
H. 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 underwriting expenses not paid by the borrower. If any loan is not repaid in a timely manner for any reason the Authority shall also be entitled to collect from the fund (if the balance of the fund has been transferred to the Economic Recovery Program Fund, then from the Economic Recovery Program 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.
