The Authority may insure up to 90 percent of a loan, with a not to exceed maximum loan insurance amount of $50,000. Should a business which is the subject of an insured loan default or otherwise be unable to make loan payments, the Authority would pay the lender up to 90% of the deficiency. The balance of any loss is absorbed by the lender. Loan payments and the proceeds of any collateral are applied pro rata to the insured and uninsured portion of the loan. The Authority's obligation would be limited to a payment of the insured percentage of a loan times the amount of principal, accrued interest and the lender's reasonable costs of collection, exclusive of costs attributed to environmental problems, remaining unpaid after liquidation of collateral up to the lesser of $50,000 or an amount equal to the insured percentage of the original loan amount authorized in the loan authorization agreement. On a case by case basis the Authority's Board may approve bank loan guarantees in excess of the aforementioned limits.