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3 | Page <br />City of Elk River HRA Loan Servicing Agreement #XXXX <br /> <br />CEE will make reasonable efforts to maintain loans in a current status and will make reasonable <br />periodic efforts to contact borrowers who are delinquent, in order to encourage payment. Such <br />efforts will be limited to thos e loans that are no more than 90 days past due. <br />o CEE will follow customary, usual and prudent business practices in servicing <br />delinquent loans . <br />o CEE will initiate contact with delinquent borrowers after the 16th day after any <br />missed due date, and will send a Late Payment Notice via mail, followed by a phone <br />call. <br />o CEE will send delinquency letters for loans 31- 60 days past due, followed by phone <br />calls. <br />o CEE will continue sending letters and phone calls for loans 61-90 days past due. <br />Late Delinquency <br />CEE will make reasonable efforts to contact Borrowers, solicit payments, and return loans to a <br />current status, where the loan has reached 90 or more days past due, in order to encourage <br />payment. <br />o CEE will follow customary, usual and prudent business practices in servicing <br />delinquent loans . <br />o CEE will send formal default letters for loans reaching 120 or more days past <br />due. <br />o CEE shall continue phone calls to borrower at 90 days past due. <br />o After 120 days past due, Client shall determine next steps and CEE shall have no <br />obligation to take further action regarding delinquent loans until directed by <br />Client. <br /> <br />DEFAULT MANAGEMENT <br /> <br />Client shall be solely responsible for declaring a loan to be in default, and determining whether a loan is <br />to be charged-off. <br /> <br />Loan Modifications <br /> <br />CEE shall respond to Client or Borrower requests for modifications to their loan terms, including <br />Repayment Plans, Forbearance Agreements, Deferments, Extensions, Short Sales (Pre- <br />Foreclosure Sales ), or Negotiated Releases of collateral, obligors or guarantors (each a “Loan <br />Modification”). <br /> <br />CEE shall make no decisions independent of the Client. Client shall have final approval of any <br />Loan Modifications, unless Client has instructed CEE in writing that it may approve Loan <br />Modifications pursuant to criteria established by Client. <br /> <br />CEE will follow customary, usual and prudent business practices in its review and processing of <br />Loan Modifications, and keep Client informed of the status of such requests. <br />