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17 <br /> year. Future membership selection from the participating financial institutions will be determined <br /> by a majority vote of the sitting members of the Loan Committee, such election to occur annually <br /> during the month of June. Meetings will be presided over by a Chair, who will be elected by the <br /> Committee each June. It will be the responsibility of the Chair to assure a quorum is present (5 <br /> members or more at each Loan Committee meeting), to generally monitor the duties of the Loan <br /> Program Administrator, to make sure loan proposal packages are properly prepared prior to their <br /> presentation at Loan Committee meetings, and to oversee the preparation of commitment letters <br /> to approved borrowers. Such commitment letters will be signed by the Chair, with a duplicate <br /> signed copy provided to the County as part of their notice for funding the Loan Loss Reserve. <br /> The Loan 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 defaultJcharge-of; 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 /> 2. The total of loan principal past due 30 days or more shall not for any month exceed 101/6 <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 /> 8 <br />