(1) Upon approval of an application, the board may enter into a commitment agreement or may proceed to make the approved loan.
(2) A loan agreement must be executed and delivered prior to disbursement of any loan funds. The loan agreement must contain the pledges, agreements and covenants necessary and appropriate to the type of loan being made and the project being financed.
(3) Prior to closing of the loan, an eligible government unit may withdraw its application for a loan for any reason. If an application is withdrawn, the commitment fee will be returned to the eligible government unit.