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46 <br />under the pxQaram described hexe. These credit lines will be <br />secured by assignment to the participant banks of a pro-rata <br />op rtion of the loan receivables *~c ~_ck -M}-}~° A 36-month. <br />commitment period will be established during which time each <br />~i~ra~~~i~rrt~e~r bank will fund approved loans on a pro-- <br />rata basis. Funding procedures, to include a provision for an <br />appropriate notice mechanism, d will be established <br />a reement between the banks and the Oran a Count Small Business <br />Loan Program Company. At the end of the commitment period, to <br />the extent there are amounts owed under the loan program, the <br />amounts owed d wa.l.7, be "termed" for a period of no later <br />than the latest scheduled maturity date for loans outstanding to <br />Borrowers under the program. The County will provide an <br />irrevocable commitment to fund a loan loss reserve equal to 30~ <br />of the x i~ra~i~~i~s~r~r~~e~ bank' s commitment . All F' ~ ~-~ <br />bank participants will bear their share of any <br />lasses (70% of principal, interest, collection fees, etc.) <br />incurred under the program. Collection procedures and loss - <br />procedures will be established. Repayment of the ~~~~~~~-zz <br />- -- ~- ; ~ ~ • ~-' -- , bank' s 1 oan~ wi 11 be o~t~~ars~-~~ <br />•ee•~.~t~= paid ,from the net proceeds received from Borrowers <br />under the program. The ~~ .~~_____ ____-_~ Oran a Count Small <br />Business Loan Proaram_Company will pay each ~~~---~~~--'- <br />-~~- ~-~ -'-' --~ bank its percentage share of those net proceeds on a <br />monthly basis. <br />This proposed structure may be a .. .,.. ...~~___~_-____ modified <br />from time to time based upon the review and advice of <br />counsel. <br />LOAN~• LOSS RESERVE <br />In the first year a Loan Loss Reserve of $50,000 (30~) must <br />be 100 irrevocably committed by Orange County prior to <br />implementation or activation of the Orange County Loan <br />Program. Tn year two, an additional $50,000 must be <br />committed. In year three, an additional $50,000 must be <br />committed, bringing the County total to 30$ of the ~e3re-~~ <br />"' - -'-" - 5500, 000 loan capacity. <br />• The Loan Loss Reserve. to be provided by Orange County shall <br />be funded in an amount not less than 30~ of the aggregate <br />loans made during the term of the program, less amounts <br />that have been paid from the Loan Loss R•~eserve to ~e <br />participating ~~r~a~ara~~•s~~~i-ems .banks . <br />9 <br />