6.0. EDSR 06-10-2002 - Laserfiche WebLink

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• The Fund Manager receives the completed Development Loan application and then proceeds with loan • review,credit analysis and recommendation; • The final structuring of the Development Loan is determined in consultation with the Member representative,participating lenders,the applicant and the Loan Purchaser, • The Fund Manager initiates a request for an formal commitment by the Loan Purchaser to purchase the Development Loan; • The commitment of the Loan Purchaser is issued. The commitment sets forth the pricing and terms of purchase; • The Fund Manager prepares a loan sununary package that includes the development project description,loan analysis and recommendation and forwards the same to the Member for approval by its governing body. For the Development Loan to proceed,the originating Member's governing body must pass a resolution which specifically requests approval of the Development Loan and commits the Member to cover any loan discount costs(based on Loan Purchaser advance commitment)and to fund any required loan loss reserve escrow which may be required by the Loan Purchaser. See"Business Plan-Loan Origination and Closing Expense"; • The Development Loan application is then submitted to the MCCF Loan Committee, which will consist of five persons (appointed by the Board of Directors) who have experience and expertise in reviewing business and/or housing loans. The MCCF Loan Committee will meet on an"as needed" basis in order to expedite the loan review process, and will have responsibility and final authority for approving, denying or modifying the loan terms and conditions; • On authorization of both the originating Member and the MCCF Loan Committee,the Fund Manager will coordinate the Development Loan closing and sale to the Loan Purchaser. 1111 Sale of Pre-Approved Loans to Secondary Market The Loan Fund is intended to be self-sustaining development financing resource, with continual recapitalization through the sale of pre-approved loans to the secondary market. All loans made by MCCF will, as a condition of closing the loan with the borrower,be pre-sold to the secondary market on a non-recourse basis. Loan Closing The following are procedural steps that MCCF, in its Participation Agreement with each Member,agrees to follow with respect to a Development Loan closing: • MCCF will request the Escrow Agent to advance from the Loan Fund an amount necessary to fund the Development Loan,net of any discount(discount to be paid by the Member originating the loan),at or before closing to the title company or authorized closing agent; • The amount so requested will be used solely to fund the principal amount of the Development Loan, net of discount, and MCCF requests the Escrow Agent to wire transfer the funds directly to the title company or authorized closing agent which will attend to the closing of the Development Loan; • MCCF will not irrevocably advance funds received from the Loan Fund to fund the Development Loan until MCCF has confirmed with the Escrow Agent that the Escrow Agent has received a wire transfer from the Loan Purchaser in an amount equal to the funds previously advanced to close the Development Loan. Monies advanced by the Loan Fund to the title company or authorized closing agent for purposes of closing the • Development Loan will be reimbursed by wire transfer from the Loan Purchaser on the same day as the transfer by the Escrow Agent to the title company or authorized loan closer. 9