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INTEREST RATE <br />6 <br />All loans will accrue interest on a daily basis at a floating interest rate. Interest rates will be <br />quoted based on the Wall Street Prime Rate plus a spread based on the maturity of the loan: <br />0-2 years Prime plus 2.00% <br />2 -3 years Prime plus 2.25% <br />3-4 years Prime plus 2.50% <br />4-5 years Prime plus 3.00% <br />Regarding term loans, Borrower will have option to pay interest at the floating accrual rate, or a <br />fixed payment rate based on the following schedule: <br />• One to three year maturity - accrual rate quoted at the origination date of loan +1 % <br />• Three to four year maturity - accrual rate quoted at the origination date of loan +1 1/2% <br />• Four to five year maturity - accrual rate quoted at the origination date of loan +2% <br />The loan committee may consider amount of loan, term, and collateral in making adjustments in <br />the rate that they deem appropriate. The loan committee will review the payment rate at least <br />annually in order to avoid negative amortization. <br />FEES AND EXPENSES <br />An origination fee will be charged, payable at closing, ranging from 1% to 1 1/2°/., but, in no <br />case to exceed limits set by North Carolina Statutes and can be financed in the loan. The <br />minimum origination fee will be $100. The applicant will be responsible for all other expenses <br />related to closing the loan, including, but not limited to, recording fees and legal fees. The <br />applicant will also be responsible for any fees related to any appraisals or reports required by the <br />Loan Committee. <br />LOAN REPAYMENT <br />Loan repayments shall be due on the first day of the month. A late payment will be assessed at <br />2% of the payment amount after the loan becomes 15 days overdue. Loans may be prepaid <br />without penalty. In the event the loan payment becomes 30 days overdue, the Loan Committee <br />will establish and implement the Procedures for the Collection of Delinquent Loans. These <br />procedures will be developed by the Loan Committee and will be presented to the Board of <br />County Commissioners for approval . <br />4 <br />