Agenda - 09-02-1997 - 9b - Laserfiche WebLink

Browse Search

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