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11 <br />2. The total of loan principal past due 30 days or more shall not for any month exceed 10% <br />of outstanding loan commitments. <br />Any exception to the above will result in a moratorium on future loan requests and a review of <br />these loan guidelines by the Loan Committee. <br />SPREAD ALLOCATION <br />During the first three years of operation, financial institutions will fund commitments at the <br />Prime rate in order to provide sufficient spread to substantially defray administrative and <br />servicing costs, plus provide a source to gradually replace the loan loss reserve established by the <br />County. Annually, this entire issue will be reviewed and adjustments made as necessary . <br />0 <br />