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10 <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 default/charge-off, etc.) <br /> 7. Conduct annual review of loan documents and credit files. <br /> PORTFOLIO MANAUMEM GUIDELINES <br /> 1. Loans to start-up businesses shall not exceed 25%of the loan pool. <br /> 2. Revolving Lines of Credit shall not exceed 35%of outstanding loan commitments. <br /> 3. The total of loan principal past due 30 days or more shall not for any month exceed 10% <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 /> SPREAD ALLOCATION <br /> During the first two years of operation, financial institutions will fund commitments at Prime <br /> minus 2% in order to provide sufficient spread to substantially defray administrative and <br /> servicing costs, plus provide a source to gradually replace the loan loss reserve established by the <br /> County. At the end of the second year, this entire issue will be reviewed and adjustments made <br /> as necessary. <br />