6.0. EDSR 06-10-2002 - Laserfiche WebLink

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receive compensation of$4,000 per month and$1,400 per loan closing. This compensation is subject to annual increases of 5%in each of Years 2 and 3 of the contract. In addition,Institute shall receive i reimbursement for travel and other out of pocket expenses. These costs are reflected as estimates in the Projections and Assumptions attached as Exhibit A. • Insurance. Institute shall take out and maintain, at MCCF's expense in the name of MCCF, director and officer insurance, liability insurance and such other insurance policies as the Board of Directors may require. Institute shall name MCCF as an additional insured upon its liability insurance policies. • Indemnity. Institute indemnifies and holds MCCF harmless from any and all claims resulting from claims by Development Loan borrowers and claims of its employees. • Assignment and Subcontracting. Institute may subcontract or engage others to perform certain of its duties and obligations, including fund management services; however, such duties and obligations shall remain the responsibility of Institute. SUMMARY OF PARTICIPATION AGREEMENT Participation Agreement In order for an Offeree to become a Member and participate in the Loan Fund,an Offeree is required to execute and deliver to MCCF a Participation Agreement in the form of Exhibit E attached to this Prospectus. Membership Each Offeree executing the Participation Agreement shall,upon acceptance by the Board of Directors and deposit in the Loan Fund of the amount set forth in the Participation Agreement, become a Member of MCCF. The Participation Agreement provides for three levels of participation depending upon the amount of contribution to the • Loan Fund. The minimum participation is $25,000 and the maximum participation is $250,000. See "Membership". Refund of Contribution A Member shall receive a refund of their deposit balance in the Loan Fund upon 30 days' advance written notice to MCCF and the Escrow Agent specifying the amount of refund that the Member wishes to receive. This notice may be given at any time after the third anniversary date of the first deposit to the Loan Fund made by the Member. See "Membership"and"Loan Fund Escrow Agreement Summary". Origination of Loans Members are entitled to originate Development Loans up to ten times the amount of their deposit balance in the Loan Fund or contribution to MCCF. Development Loans originated by Members are subject to approval by the MCCF Loan Committee, which consists of five persons (appointed by the Board of Directors) who are to have experience in reviewing business and/or housing loans. The Committee will meet on an as needed basis in order to expedite the loan review process and will have final responsibility and final authority for approving, denying or modifying the loan terms and conditions. In the event the Loan Purchaser requires a credit reserve deposit as security for the Development Loan, and/or the sale price of the Development Loan is discounted from par value(the principal amount of the loan),the originating Member will be required to fund the credit reserve and the discounted amount See "Business Plan - Loan Origination and Closing Expenses". The originating Member will be informed of the existence of a reserve requirement and a discount prior to the Member's commitment to the loan and the Member may decline to proceed. LOAN PURCHASER AGREEMENTS • MCCF will receive an advance commitment agreement and loan purchase agreement from the Loan Purchaser with respect to the purchase of all Development Loans made from the Loan Fund. The loan agreement will be on a non- recourse basis. MCCF intends to enter into agreement with Community Reinvestment Fund("CRF'),a secondary market economic development loan buyer to serve as a Loan Purchaser. 14