Agenda - 12-04-1995 - X-C - Laserfiche WebLink

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9 participants will bear their share of any losses beyond the reserve(principal, interest, collection fees, etc.) incurred under the program. Collection procedures and loss procedures will be established. Repayment of the financial institutions' loans will be on a monthly basis and will consist of the net proceeds received from Borrowers under the program. The established entity will pay each financial institution its percentage share of those net proceeds on a monthly basis. This proposed structure may be subject to modification based upon the review and advice of appropriate counsel. LOAN LOSS RESERVE • In the first year a Loan Loss Reserve of$45,000(30%)must be 100% irrevocably committed by Orange County prior to implementation or activation of the Orange County Loan Program. In year two, an additional $50,000 must be committed. In year three, $55,000 must be committed, bringing the County total to 30%of the one half million dollar loan capacity. • Loan Loss Reserve to be provided by Orange County shall be funded in an amount not less than 30%of the aggregate loans made during the term of the program, less amounts paid from the reserve to the participating financial institutions. LOAN COMMITTEE Membership shall consist of 6 representatives from the participating financial institutions and 2 representatives appointed by the County. Selection of the 6 initial members shall be made by the members of the Loan Pool Task Force, with no less than 4 members of this initial selection representing financial institutions serving on the Task Force. Appointees will serve staggered terms established by the Task Force in order to provide for future rotation of 2 members each year. Future membership selection from the participating financial institutions will be determined by a majority vote of the sitting members of the Loan Committee, such election to occur annually during the month of June. Meetings will be presided over by a Chair, who will be elected by the Committee each June. It will be the responsibility of the Chair to assure a quorum is present(5 members or more at each Loan Committee meeting), to generally monitor the duties of the Loan Program Administrator, to make sure loan proposal packages are properly prepared prior to their presentation at Loan Committee meetings, and to oversee the preparation of commitment letters to approved borrowers. Such commitment letters will be signed by the Chair, with a duplicate signed copy provided to the County as part of their notice for funding the Loan Loss Reserve. The Loan Committee will have the following responsibilities: 1. Find creative ways to utilize loanable funds to stimulate successful small business development and job creation. 2. Meet monthly to review loan applications and determine which request will be approved