(1) A loan made under this chapter shall be repayable over a period established by the Department for each loan, which shall not exceed a 17-year period. The sponsor shall make payments to the Department on an annual basis, as established in the loan agreement between the sponsor and the Department, commencing one year from the date that the State Controller issues the warrant for the loan proceeds. Interest shall be computed daily on the basis of the outstanding principal.

(2) Where a loan has been made for the construction of a revenue-generating project, the sponsor shall establish a separate account within the airport's special aviation fund for the purpose of receiving revenue which would be held in trust, in an amount equal to one year's repayment of the loan. Revenue received after the first year's payment would be available to the airport for the purpose of achieving financial self-sufficiency.

(3) Nothing in these regulations shall be construed as prohibiting the sponsor from making early repayment, either in full or in part. Interest due as of the date of early payment shall be included in the early payment.