Fees will be determined according to the provisions of this section in lieu of Sec. 4279.107.
(a) Guarantee fee. The guarantee fee will be paid to the Agency by the lender and is nonrefundable. The fee may be passed on to the borrower. Issuance of the Loan Note Guarantee is conditioned on payment of the guarantee fee by closing. The guarantee fee will be the percentage specified in paragraphs (a)(1) or (a)(2) of this section, as applicable, unless otherwise specified by the Agency in a notice published in the Federal Register, multiplied by the principal loan amount multiplied by the percent of guarantee and will be paid one time only at the time the Loan Note Guarantee is issued.
(1) For loans receiving a 90 percent guarantee, the guarantee fee is three percent.
(2) For loans receiving less than a 90 percent guarantee, the guarantee fee is:
(i) Two percent for guarantees on loans greater than 75 percent of total project costs.
(ii) One and one-half percent for guarantees on loans of greater than 65 percent but less than or equal to 75 percent of total project costs.
(iii) One percent for guarantees on loans of 65 percent or less of total project costs.
(b) Annual renewal fee. The annual renewal fee, which may be passed on to the borrower, will be paid to the Agency for as long as the guaranteed loan is outstanding and is payable during the construction period. Unless otherwise specified by the Agency in a notice published in the Federal Register, the annual renewal fee shall be as follows:
(1) One hundred basis points (1 percent) for guarantees on loans that were originally greater than 75 percent of total project costs.
(2) Seventy five basis points (0.75 percent) for guarantees on loans that were originally greater than 65 percent but less than or equal to 75 percent of total project costs.
(3) Fifty basis points (0.50 percent) for guarantees on loans that were originally for 65 percent or less of total project costs.