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12 <br />if a restructuring is beneficial to Program. <br />Once a payment. is 60 days overdue, a plan to collect the outstanding balances <br />will be developed in conjunction with Orange County's legal department. <br />Individual Collection Plans will be tailored to the outstanding account, but may <br />include one or more of the following activities: <br />When a borrower is 60 days past due, a reminder Letter is sent advising of <br />the outstanding loan and of the late payment charged as detailed in the <br />`Loan Repayment' section above; <br />A collection letter is sent when the account is 90 days past due, and may <br />contain additional penalties; <br />Accounts that are 120 days past due may be turned over to a professional <br />collection agency. <br />LOAN ANALYSIS <br />The Loan Committee shall review and consider a number of items in <br />determining whether a loan should be made: Those items. shall include at Least <br />the following: <br />1. Business plan. <br />2. Current and projected. employment (including future need for <br />employees; skill levels and education required; employee <br />compensation, health insurance, and other benefits). <br />3. Business financial statements. (Past two years plus interim) <br />~. Tax returns. (Past two years -personal- and business) <br />5. Pro formas (financi-al statement projections that may include <br />monthly cash flow, profit and loss, and additional statements <br />as required by the Loan Committee) to determine that there will be <br />sufficient cash flow to meet obligations for Z years. <br />6. Personal financial statements. <br />7. Information regarding collateral and a current personal credit report. <br />8 <br />