The department shall determine the terms of each loan, which must include the following:

1. (1) The duration of the loan, which may not exceed twelve (12) years.
2. (2) The repayment schedule of the loan, which must provide that no payments are due during the first two (2) years of the loan.

3. (3) A variable rate of interest to be determined by the department and adjusted annually. The interest rate must be the greater of:

   1. (A) five percent (5%); or
   2. (B) two-thirds (2/3) of the interest rate for fifty-two (52) week United States Treasury bills on the anniversary date of the loan, but not to exceed ten percent (10%).
4. (4) The amount of the loan.
5. (5) Any other conditions specified by the department.

As added by P.L.34-1990, SEC.2.