124 STAT. 2576 PUBLIC LAW 111–240—SEPT. 27, 2010 funds held in a reserve fund by establishing a deposit account at the financial institution lender in the name of the partici- pating State. In the event that funds in the reserve fund are not deposited in such an account, such funds shall be invested in a form that the participating State determines is safe and liquid. (3) LOAN TERMS AND CONDITIONS TO BE DETERMINED BY AGREEMENT.—A loan to be filed for enrollment in an approved State capital access program may be made with such interest rate, fees, and other terms and conditions, and the loan may be enrolled in the approved State capital access program and claims may be filed and paid, as agreed upon by the financial institution lender and the borrower, consistent with applicable law. (4) LENDER CAPITAL AT-RISK.—A loan to be filed for enroll- ment in the State capital access program shall require the financial institution lender to have a meaningful amount of its own capital resources at risk in the loan. (5) PREMIUM CHARGES MINIMUM AND MAXIMUM AMOUNTS.— The insurance premium charges payable to the reserve fund by the borrower and the financial institution lender shall be prescribed by the financial institution lender, within minimum and maximum limits that require that the sum of the insurance premium charges paid in connection with a loan by the borrower and the financial institution lender may not be less than 2 percent nor more than 7 percent of the amount of the loan enrolled in the approved State capital access program. (6) STATE CONTRIBUTIONS.—In enrolling a loan in an approved State capital access program, the participating State may make a contribution to the reserve fund to supplement Federal contributions made under this Program. (7) LOAN PURPOSE.— (A) PARTICULAR LOAN PURPOSE REQUIREMENTS AND PROHIBITIONS.—In connection with the filing of a loan for enrollment in an approved State capital access program, the financial institution lender— (i) shall obtain an assurance from each borrower that— (I) the proceeds of the loan will be used for a business purpose; (II) the loan will not be used to finance such business activities as the Secretary, by regulation, may proscribe as prohibited loan purposes for enrollment in an approved State capital access program; and (III) the borrower is not— (aa) an executive officer, director, or prin- cipal shareholder of the financial institution lender; (bb) a member of the immediate family of an executive officer, director, or principal shareholder of the financial institution lender; or (cc) a related interest of any such execu- tive officer, director, principal shareholder, or member of the immediate family;
