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In <br />Attachment 2 <br />Loan Term <br />Interest Rate <br />0 up to 2 years <br />Prime plus 2 00% <br />2 up to 3 years <br />Prime plus 2.25% <br />3 up to 4 years <br />Prime plus 2.50% <br />4 up to 7 years <br />Prime plus 3.00% <br />The finance charges on the loan will be calculated by multiplying a daily periodic rate <br />(the interest rate/ 365) by the unpaid principal amount of the loan on the last day of the <br />billing cycle times the number of days in the month. The daily periodic rate may vary <br />from month to month due to changes in the interest rate and will be determined in the <br />same manner as the interest rate is determined with the loan maturity date unchanged <br />from that used to calculate the interest rate when the loan is made. The Loan <br />Committee will assign an interest rate using the rate guidelines provided above, to each <br />loan commitment. <br />FEES AND EXPENSES <br />An origination fee, which may be paid from the loan proceeds, will be charged, payable <br />at closing, ranging from 1 % to 1 '/2% but, in no case to exceed limits set by North <br />Carolina Statutes. The minimum origination fee will be $100. The applicant will be <br />responsible for all other expenses related to closing the loan, including, but not limited <br />to, recording fees and legal fees. The applicant will also be responsible for any fees <br />related to any appraisals or reports required by the Loan Committee. <br />LOAN REPAYMENT <br />Loan repayment schedules will be finalized upon loan commitment. All payments shall <br />be due as stipulated in the repayment schedule. A late payment will be assessed at <br />2% of the payment amount after the loan becomes 15 days overdue. Loans may be <br />prepaid, in whole or in part, at any time without penalty. In the event the loan payment <br />becomes 30 days overdue, procedures for the Collection of Delinquent Loans shall be <br />followed. <br />COLLECTION OF DELINQUENT LOANS <br />If a payment becomes 30 days overdue, the borrower will be contacted. If extenuating <br />circumstances warrant, the loan may be restructured to encourage payment. The Loan <br />Committee will evaluate the loan as a whole, and determine if a restructuring is <br />beneficial to Program. <br />Once a payment is 60 days overdue, a plan to collect the outstanding balances will be <br />developed in conjunction with Orange County's legal department. Individual Collection <br />Plans will be tailored to the outstanding account, but may include one or more of the <br />following activities: <br />When a borrower is 60 days past due, a reminder letter is sent advising of the <br />outstanding loan and of the late payment charged as detailed in the `Loan <br />Repayment' section above; <br />A collection letter is sent when the account is 90 days past due, and may contain <br />additional penalties; <br />Accounts that are 120 days past due may be turned over to a professional <br />