Sec. 1. 10 MRSA §1026-T is enacted to read:

§1026-T.__Loan insurance for purpose of buying home heating

fuel

1.__Scope of section.__This section applies to individual residents of the State for the purpose of providing for the guarantee of loans up to $1,000 to enable individuals to lock in the purchase price of home heating fuel at a prewinter heating season rate.

2.__Loan insurance eligibility.__The authority may insure loan payments under this section as long as:

A.__The loan has a maturity of 12 months or less; and

B.__The borrower is an individual who is a resident of the State and is not eligible for the Low-income Home Energy Assistance Program.

Repayment of the loan may be unsecured if the borrower has a good credit record;

3.__Insurance.__Any loan insurance provided pursuant to this section is subject to the following:

A.__The original principal amount of loan insurance may not exceed $1,000;

B.__The authority may insure up to 100% of the loan payment; and

C.__The authority may charge an insurance premium of up to 1%.

4.__Limitation on loan insurance.__The authority may not at any time have, in the aggregate amount of principal and interest outstanding, loan insurance obligations pursuant to this section exceeding $10,000,000 less the outstanding balance of any bonds under section 1024, subsection 2 with respect to obligations incurred under this section.