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10 <br />LOAN COMMITTEE <br />Membership shall consist of 6 representatives from the participating financial institutions and 3 <br />representatives appointed by the County Commissioners. Selection of the 6 initial financial <br />institution members shall be made by the members of the Loan Pool Task Force, with no less <br />than 4 members of this initial selection representing financial institutions serving on the Task <br />Force. The 3 representatives appointed by the County Commissioners will be the County <br />Manager, County Finance Director, and a County Commissioner. Financial institution <br />appointees will serve staggered three -year terms established by the Task Force in order to <br />provide for future rotation of 3 members each year. Future membership selection from the <br />participating financial institutions will be determined by a majority vote of the sitting members <br />of the Loan Committee, such election to occur annually during the month of June. Meetings will <br />be presided over by a Chair, who will be elected by the Committee each June. It will be the <br />responsibility of the Chair to assure a quorum is present (5 members or more at each Loan <br />Committee meeting); to generally monitor the duties of the Loan Program administration; to <br />make sure loan proposal packages are properly prepared prior to their presentation at Loan <br />Committee meetings; and to oversee the preparation of commitment letters to approved <br />borrowers. Such commitment letters will be signed by the Chair, with a duplicate signed copy <br />provided to the County as part of their notice for funding the Loan Loss Reserve. The Loan <br />Committee will have the following responsibilities: <br />1. Find creative ways to utilize loanable funds to stimulate successful small business <br />development and job creation. <br />2. Meet monthly to review loan applications and determine which request will be approved <br />and under what terms and conditions. <br />3. Periodically review status of existing loans and recommend appropriate corrective action <br />or special monitoring where needed. <br />4. Approve modifications to loan agreements. <br />5. Evaluate underwriting requirements and make appropriate adjustments as needed to <br />accomplish the objectives of the program. <br />6. Provide direction regarding collection (e.g. legal action, foreclosure, acceleration of <br />amortization, determination of default/charge -off, etc.) <br />7. Conduct annual review of loan documents and credit files. <br />PORTFOLIO MANAGEMENT GUIDELINES <br />1. Loans to start-up businesses shall not exceed 25% of the loan pool . <br />8 <br />