(a) Upon approval of an application by the Committee, the President, Vice President of Development Finance, or their designees or members of the Board, a loan authorization agreement will be issued setting forth the terms and conditions upon which the loan will be insured.

(b) No loan authorization shall become effective until the lender has paid the initial insurance premium required in section 12 of these regulations. Such payment, along with an executed loan authorization, shall indicate the lender's acceptance of the loan authorization.

(c) No loan authorization shall be effective unless a loan insurance agreement as provided in Section 11 of these regulations has been executed by the lender and the Authority and remains in effect.

(d) In the event the President or Vice President of Development Finance or their designees rejects an application, they will promptly send the lender and prospective borrower a notice, including reasons for the rejection. The notice shall include a statement of the borrower's right to appeal the President's or the Vice President's of Development Finance or their designees' decision to the Authority's Board.