Section 2-6 - Terms, Conditions, and Repayment a. In making loans, the Board of Directors shall: - (i) establish for recovery of filing fees and other administrative fees at cost, which are required for the perfection of security interests;
- (ii) set an interest rate (minimum 4% per annum) after considering:
- A. the availability, likelihood of receipt, and the pledging of potential federal grants and/or loans, and insurance and legal proceeding proceeds, if any, for the immediate repayment of the Economic Disaster Loan, to the extent proceeds are available;
- B. the extent of the Borrower's financial assets which could be used to meet its financial needs.
- C. the extent of the verified uninsured economic disaster loss and the financial needs of the potential Borrower;
- D. the proposed use of funds;
- E. other interest rates associated with Borrowers existing indebtedness;
- F. projected cash flows and repayment plan of the Borrower;
- G. credit risk of the Borrower;
- H. current and projected market interest rates;
- I. collateral and security package;
- J. personal guarantee(s) with a blanket lien;
- K. whether the event was beyond the control of the Business or the result of poor management decisions and planning; and
- L. the availability of a non-judicial foreclosure agreement with the Borrower's existing lenders.
- (iii) establish the terms of repayment, not to exceed ten (10) years;
- (iv) establish other terms and conditions determined to be necessary by the Board of Directors, as well as other customary and prudent terms and conditions, negative and affirmative covenants, cross-default, conditions precedent, security agreements, etc.;
- (v) require written permission from the Borrower agreeing to allow the Department of Audit and an auditor designated by the Board of Directors to examine its books and records, upon request; and
- (vi) require all statutory requirements regarding the loan be met.