Agenda - 10-06-1998 - 8d - Laserfiche WebLink

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9 8. Other available financing including, but not limited to, whether other financial institutions have agreed to consider traditional debt financing and under what circumstances. 9. Should the Loan Committee determine that it needs additional information before granting or denying the application, the Program Administrator will notify the applicant of the information needed. PROPOSED STRUCTURE Each bank participant will commit a revolving credit line on a non - recourse basis to an entity determined by appropriate legal review of the proposed structure. These credit lines will be secured by assignment of the loan receivables to such entity. A 36 -month commitment period will be established during which time each financial institution will fund approved loans on a pro -rata basis. Funding procedures, to include a provision for an appropriate notice mechanism, would be established. At the end of the commitment period, to the extent there are amounts owned under the loan program, the amounts owed would be "termed" for a period of no later than the latest scheduled maturity date for loans outstanding to Borrowers under the program. The County will provide an irrevocable commitment to fund a loan loss reserve equal to 30% of the financial institutions' commitment. All financial institution participants will bear their share of any losses (70% of principal, interest, collection fees, etc.) incurred under the program. Collection procedures and loss procedures will be established. Repayment of the financial institutions' loans will be on a monthly basis and will consist of the net proceeds received from Borrowers under the program. The established entity will pay each financial institution its percentage share of those net proceeds on a monthly basis. This proposed structure may be subject to modification based upon the review and advice of appropriate counsel. LOAN LOSS RESERVE • In the first year a Loan Loss Reserve of $50,000 (30 %) must be 100% irrevocably committed by Orange County prior to implementation or activation of the Orange County Loan Program. In year two, an additional $50,000 must be committed. In year three, $50,000 must be committed, bringing the County total to 30% of the one -half million dollar loan capacity. • Loan Loss Reserve to be provided by Orange County shall be funded in an amount not less than 30% of the aggregate loans made during the term of the program, less amounts paid from the reserve to the participating financial institutions. 7