(a) The Arkansas Development Finance Authority shall charge a one-time, up-front insurance premium.
(b) Premiums are due at the time a lender originates a loan and executes a loan authorization with the authority.
(c) The authority’s insurance is not effective until premiums are paid.
(d) It is expected that the lender will pass along the cost of premiums to borrowers.
(e) Premiums shall be determined at the time the Small Business Loan Committee of the Board of Directors of the Arkansas Development Finance Authority approves the application, but in no event is the premium to exceed two percent (2%) per annum on an annualized basis.