loan to any one applicant shall not exceed $50,000. For loans exceeding
$25,000, the authority shall require greater assurances that the loan will be
repaid on a case-by-case basis.
Loans shall not be made for relocation or reestablishment expenses for which
the applicant receives payments or compensation from the authority or other
governmental agency. No applicant shall have more than one active loan at a
(c) The executive director
shall determine the extent and kinds of security required for each loan. When
loans are secured, such security may be subordinated to loans made by financial
institutions. The applicant shall execute any promissory note, mortgage, loan
agreement, or other agreement as may be required by the authority.
(d) No loan shall be granted for a period
exceeding twenty years. Loans shall be for periods determined by the authority
and based upon the security for the loan, the financial capability of the
applicant, and other lending practices.
(e) Interest on loans shall be set at the
prime interest rate as published in the Wall Street Journal at the date of
closing or at a rate of seven and one-half per cent a year, whichever is lower,
provided, the total interest paid by an applicant for a loan shall not be less
than the loan servicing fees paid by the authority to third parties at the time
of loan closing.
(f) The executive
director shall determine the commencement date for the repayment of the first
installment. The executive director may defer the initial payment on the
principal of a loan, but in no event shall the principal payments be deferred
in excess of three years from date of issuance of the loan.
(g) The executive director may defer the
interest on the principal of a loan, but in no event shall interest payments be
deferred in excess of one year from the date of issuance of the loan.