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17 <br />Attachment 2 <br />2. Purchase of equipment or improvement of real estate which are used or to be <br />used for personal use. <br />3. Political activities. <br />4. Owner salary and dividend payments beyond an agreed amount. <br />5. Speculative ventures (Examples: drilling for gas or oil, commodity futures). <br />6. Lending or investment. <br />7. Real property held for sale or investment. <br />8. Pyramid sales - distribution plan businesses. <br />9. Floor plan financing (defined as a revolving line of credit that allows the <br />borrower to obtain financing for retail goods. These loans are made against a <br />specific piece of collateral (i.e. an auto, RV, manufactured home, etc.)). <br />10. Foreign controlled businesses. <br />11. Non - profit institutions. <br />12. Private membership clubs. <br />COMPLIANCE WITH APPLICABLE REGULATIONS <br />In all cases, loans made from this program must be consistent and in accordance with <br />the following: <br />1. All state and local regulations governing the applicant's business. <br />2. Policies established by the Loan Committee for each particular <br />applicant. <br />3. Policies established by the Board of County Commissioners dealing with this <br />loan program. <br />AMOUNT OF LOANS <br />Maximum: $50,000. Minimum: $5,000. Should market conditions change, or in the <br />event of an applicant with extraordinary conditions, a loan in amount outside of the <br />maximum or minimum may be considered by the Loan Committee. All loans are <br />subject to availability of loan funds. <br />LOAN TERM <br />Maximum Term - 5 years (except 7 years for the purchase or improvement of real <br />estate used or to be used wholly for the business purpose of the applicant.) Should <br />market conditions change, or in the event of an applicant with extraordinary conditions, <br />a loan term in excess of the maximum term may be considered by the Loan Committee. <br />INTEREST RATE <br />All loans will be charged finance charges based on a variable interest rate. The <br />variable interest rate (the "interest rate ") will be determined by and be based on the <br />length of the maturity of the loan and an increment over the highest Prime Rate <br />( "Prime ") as published on the first business day of the month in the Money Rate Table <br />in the Eastern Edition of the Wall Street Journal generally as follows: <br />