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As a member of the MCCF, do we hare the right to appoint a representative to the Board of Directors? <br /> <br />No, but a representative of your organization will be eligible for election to the nine-member Board that will <br />govern the MCCF. Six of the nine board members will be elected by the membership at the organization's <br />meeting. Since the corporation has three classes of membership (based <br />upon the member's contribution level) each class of members will elect <br />two directors. The six elected directors will be responsible for filling the <br />three at-large director seats. <br /> <br />Who will manage the Fund? <br /> <br />The Northland Institute, a Minnesota nonprofit corporation, will provide <br />management services to the MCCF for at least the first three years of <br />operation. After this initial period, the Board of Directors may either <br />continue to contract for fund management services or hire staff to manage <br />the Fund. <br /> <br />Who will pay for the cost of fitnd management? <br /> <br />The primary revenue sources that will be available to pay for fund <br />management services are the interest earnings on the pooled funds <br />contributed by MCCF members and loan origination fees charged to <br />borrowers. Members will not be required to pay directly for services <br />provided by the fund manager that pertain to the structuring of MCCF <br />loans. However, any technical assistance provided to members that is not <br />directly related to a MCCF loan transaction will be subject to a reasonable <br />service fee to be paid by the benefiting member. <br /> <br />How will the Fund be recapitaliz, ed? <br /> <br />The MCCF will be a self-sustaining development resource, with recapitalization of the Fund through the sale of <br />pre-approved loans to the secondary, market. The sale proceeds from MCCF loans will go back into the Fund. <br />Members originating MCCF loans that are sold at a discount will be required to make-up the difference between <br />the loan's par value and it's sale price. Through this ongoing approach, the MCCF loan pool will be continually <br />recapitalized and funds will be readily available to make new loans. <br /> <br />What drives the price paid for a loan? <br /> <br />Institutional investors who purchase economic development and affordable housing loans seek a market rate of <br />return. Accordingly, loans that are priced at market rates receive par value. Those priced above the market earn a <br />premium, while those priced below the prevailing market are bought at a discount. <br /> <br />How flexible are the Fund's lending policies? <br /> <br />The MCCF is designed to provide a great deal of flexibility in terms of borrower eligibility, interest rates, loan <br />terms and conditions, equity requirements, etc. The Fund's lending focus will be on business and community, <br />economic development financing activities that support livable wage jobs and affordable housing. MCCF <br />members will be encouraged to work closely with the fund manager in structuring loan packages that are <br />responsive to their needs. <br /> <br />Is there a limit on the number of loans that a MCCF member can originate? <br /> <br />No. The only limit is on the size of each loan that may be originated by a member from the Fund. Members wiI1 <br />be able to originate loans of up to ten times the amount they contributed to the Fund. <br /> <br /> <br />