The authority may contract to loan an amount not to exceed 50% of the cost of establishing an industrial development project, subject to the following conditions:
(1) Before making the loan, the authority shall determine that:
(i) the borrower is responsible to assume all obligations imposed by the authority in connection with the project, financial or otherwise, and to undertake the operation of the project; and
(ii) the borrower has obtained from other independent and responsible sources a firm commitment for any funds which, in addition to the loan and any other property or assets held by the borrower, are necessary for the completion and operation of the project.
(2) The authority shall determine the interest rate and repayment period of the loan.
(3) The loan must be evidenced by note of the borrower, and secured by a mortgage on the project for which the loan was made, subordinate only to the mortgage securing the first lien obligation issued to secure the commitment of funds provided to pay the cost of the project from the independent and responsible sources, and used in the financing of the project.
(4) The authority may require additional security as it may deem necessary.
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