6.0. EDSR 06-10-2002 - Laserfiche WebLink

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• MCCF intends to offer Members access to other financing resources in the future. Specifically, an • application is now pending for a US Treasury Department certification of the MCCF as a Community Development Financial Institution ("CDFI"). When certified, MCCF will apply for federal funds to support the expansion of MCCF's economic development mission. Loan Origination Fees and Closing Expenses MCCF will charge the borrower a loan origination fee of 1.75%for each loan. The borrower is also required to pay all other fees and expenses customarily associated with loan closings, including the legal expenses of MCCF incurred with respect to the loan closing. Member Obligations Limited For each MCCF Loan,the originating Member will be required by the Loan Purchaser to fund a credit reserve of not less than 5%of the principal amount of the Development Loan for a period of 12 months following the closing of the sale of the Development Loan to the Loan Purchaser. In the event the price offered by the Loan Purchaser is discounted from par value (face amount of the loan), the Member originating the Development Loan will be responsible for funding the difference between that par value and the loan sale price. The actual credit reserve requirement or any discount from par value will be known to the originating Member prior to the commitment by MCCF to the borrower and other funding sources. The originating Member may decline to proceed with the Development Loan closing, without any obligation. In the event the Development Loan originated by a Member is sold at a premium, the Member will receive at closing the Development Loan premium payment(the amount paid by the Loan Purchaser in excess of the face amount of the loan). Whether Development Loans sold by MCCF to the Loan Purchaser are sold at par value,at a premium,or are discounted is a function of the marketplace. However,the Member will always have the opportunity to accept or reject the offer of the Loan Purchaser. Except as set forth above, Members do not incur any expenses, costs, or obligations with respect to Development • Loans that it originates through the MCCF Loan Fund. Loan Criteria MCCF has established general criteria for the review and analysis of Development Loans. MCCF Loan Criteria includes financing policies that provide for minimum and maximum loan amounts, project eligibility requirements, allowable uses of loan proceeds, ineligible uses, fees and charges, and interest rate and loan term provisions. Also included are borrower credit criteria, which addresses equity and collateral requirements, debt to worth ratios, personal guarantees, management experience and company performance factors, and minimum cash flow and debt service coverage requirements. See"MCCF Loan Criteria—Exhibit F'. Sequence of Events-Development Loan Origination to Loan Closing The following sets forth a representative sequence of events reflecting the process that will be followed when a Member originates a Development Loan: • A Member identifies a development project which appears to qualify for MCCF financing and an authorized representative of the Member contacts the Fund Manager concerning the potential development project and its financing needs; • The Fund Manager gathers details of the development project and its financing needs from the Member representative; • If the development project is eligible and has a high probability of moving forward,the Fund Manager sets up a site visit with the applicant, participating bank, Member representative, and other development project stakeholders. During this meeting, various financing structures will likely be considered which will affect secondary market loan pricing. The Loan Purchaser will be called upon to give preliminary indications as to whether the proposed financing qualifies for a secondary market purchase and to provide an estimated purchase price of the Development Loan. The applicant will be invited to submit a formal loan application and will be advised of the loan approval process and time line; 8