Section 15.07 - Execution of Grant and Loan Agreements(1)Grants. (a) All Grants awarded under this program shall be made on a reimbursement basis in accordance with 815 CMR 2.00: Grants and Subsidies;(b) A Grant award shall not commit or obligate EEA to award any continuation of funding to cover cost overruns for any project. Cost overruns for any project or portion thereof are solely the responsibility of the Grantee;(c) All funds awarded must be committed by the Grantee within 24 months of contract execution or be forfeited.(2)Loans. (a) All Loan agreements shall set forth the terms and conditions of the Loan, including a Loan repayment schedule and administrative fees, approved project scope, budget, approved project costs, securing the loan and the approved commencement and completion dates for the project or major phases thereof;(b) The Loan award shall not commit or obligate EEA to award any continuation loan to cover cost overruns for any project. Cost overruns for any project or portion thereof are solely the responsibility of the Borrower;(c) The interest rate for Loans made shall be fixed at no more than 2% or 1/2 the prime rate as published by the Federal Reserve Bank at the time the Loan application is made, whichever is greater;(d) The Loan maturity period shall be for not more than 20 years from the date that disbursements to the Borrower begin. EEA and the borrower may establish a shorter repayment schedule by mutual agreement;(e) All funds awarded must be committed within 24 months of contract execution or the Loan shall be cancelled and subject to repayment of all outstanding principal plus penalties, costs and interest;(f) The Secretary shall establish terms and conditions for the execution and repayment of the Loans, including administration fees. All terms and conditions shall be outlined in the offering document for loan funds soliciting applications on Comm-PASS.(3) Loan and Grant agreements may also contain such other conditions and limitations as EEA deems necessary, including but not limited to: (a) Covenants by the applicant related to the project, including a covenant to comply with all federal and state statutes and regulations applicable to the local Applicant's construction and operation of the project;(b) Measures deemed necessary by EEA to prevent or remedy a default by the Loan Recipient;(c) Any requirements regarding certification of a project's performance or completion or compliance with EEA's guidance on the use of and requirements for professional sub-agreements.