Loan guarantees (Repealed)

(a) The loan being guaranteed or the guarantee itself may be secured or unsecured as the Authority or the Committee of the Authority determines to be appropriate in the particular circumstances. If the loan being guaranteed or the guarantee itself is to be secured, the Authority or said Committee of the Authority may require the borrower to provide the Department or financial institution as security any or all of the following: real property, accounts, chattel paper, letters of credit, insurance documents, instruments, general intangibles, goods, equipment, inventory or other personal property, and may further require the borrower to have executed and delivered to the Department or financial institution security agreements, financing statements, mortgages, pledges, assignments, subordinations, guarantees or other documents or evidences of security or delivery as and in the form required by the Authority or said Committee of the Authority. (b) The term of a loan guarantee shall not exceed five years from the date of the first disbursement. (c) The loan being guaranteed shall be repaid on an amortized schedule of payments or upon such other method of payment of principal and interest as the Authority or the Committee of the Authority considers necessary and appropriate in the particular circumstances. (d) Issuance of the loan guarantee shall be made at the discretion of the Commissioner in accordance with the provisions of the loan agreement and the instructions of the Authority. (e) Each loan guarantee shall apply only to an amount up to the lesser of: (1) The principal balance of the loan being guaranteed, together with such interest thereon that does not exceed the lesser of the rate charged by the financial institution or one percent (1%) over the United States Treasury note rate comparable at the time of disbursement to the period of the loan guarantee; or (2) Fifty percent (50%) of the Net Commercial Exposure with respect to the specific export contract.