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wdLender_CONTRACT_MASTER. DOTX <br />DE PARTMENT:Ag riculture <br />DATE: <br />TO: <br />FROM: <br />PHONE: <br />FAX: <br />E-MAIL: <br />August 26, 2020 <br />Calvin Portner <br />Dwight Wilcox; Richard Gruenes <br />Ag BMP Loan Program <br />(651) 201-6618 <br />(651) 201-6109 <br />STATE OF MINNESOTA <br />Office Memorandum <br />Dwight.Wilcox@state.mn.us ; Richard. Greuenes@state.mn.us <br />SUBJECT: Statewide Multi -lender agreement with City of Elk River <br />Enclosed is the statewide lender agreement we discussed. Please review and call with any questions, otherwise we are <br />ready to proceed. <br />This one contract applies to all City of Elk River branches and offices under the same operational charter, regardless of the <br />number of offices or the counties where they are located. You could technically provide loans for eligible projects under <br />this program anywhere in the state. However, whether you offer a loan to any particular project is at your discretion. You <br />do not need to provide service to all portions of all counties. <br />If you choose to participate, you may sign this contract and return it tome. As required by state law, we will need your <br />Federal Tax ID and proof of Workers Compensation Insurance Coverage. Please write your Tax ID on the front cover page <br />of the agreement and include a copy of your Certificate of Coverage or the just the f ront page of your policy showing the <br />dates of coverage. <br />A couple of items: <br />1) The procedures to request funds are described in section VI. I have included an example of the <br />form we use to document the project, the county's approval, and your request of funds. Typically <br />we receive just two sheets of paper: <br />a. the completed "AgBMP Loan Application Form" form, and <br />b. a bill or invoice showing the project's incurred expenses <br />Lenders usually receive the funds from the MDA within two weeks. <br />2) Under this contract, repayments to the Department will begin within one year of when we send <br />funds to you, section VIII. After the first year, the actual repayment schedule depends on the terms <br />of the loans issued by you; however, we will bill you for the funds you should have collected in the <br />previous six months (based on the terms you reported to us) on 4/1 and 10/1 of each year. The <br />amount of repayment will follow the repayments you receive from borrowers. <br />3) The amount of repayment to the state will be calculated based on the cumulative total of all <br />outstanding loansfromall counties youwork with. Wewill send a single invoice forthe repayments <br />twice each year (VIII.B.). <br />4) Most lenders set up the program as a General Ledger Account showing the total obligation owed <br />the state. They often use a sub -account to hold principal repayments from the borrowers and the <br />loans themselves are flagged with a code to identify them with this program. We have a few lenders <br />that use a standard demand deposit account to track all transactions. Others simply create a zero <br />interest depository account increasing their depository pool from which the loan is issued. <br />Repayments to the MDA as billed by the MDA. You have great flexibility in how you track this <br />account. <br />5) We require only a single annual report that verifies the account balance, unless other problems are <br />identified. I have included an example copy of that form. <br />08/26/2020 <br />