(a) In general. Before we issue a Letter Commitment, you shall pay us an investigation fee. The Letter Commitment will state the fee which is based on the formula in paragraph (b) of this section.

(1) The investigation fee covers the cost of the investigation of the project described in the application and the participants in the project, the appraisal of properties offered as security, Vessel inspection during construction, reconstruction, or reconditioning (where applicable) and other administrative expenses.

(2) If, for any reason, we disapprove the application, you shall pay one-half of the investigation fees.

(b) Base Fee.

(1) The investigation fee shall be one-half ( 1⁄2 ) of one percent on Obligations to be issued up to and including $10,000,000, plus

(2) One-eighth ( 1⁄8 ) of one percent on all Obligations to be issued in excess of $10,000,000.

(c) Credit for filing fee. You will receive credit for the $5,000 filing fee that you paid upon filing the original application (described in §298.3) towards the investigation fee.