General

General. A financial institution (“Financial Institution”) issuing a letter of credit must be approved by MBFC. The letter of credit must be an irrevocable direct pay letter of credit in an amount of one hundred three percent (103%) of the loan plus two hundred ten (210) days interest thereon. The Financial Institution must allow for the assignment of the letter of credit by the Borrower. The letter of credit, to be delivered at the closing of the Borrower's loan, will be for a term of not less than five (5) years and will consist of semi-annual interest and annual principal payments.