2005-06-22 CC Packet - Laserfiche WebLink

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Loans and $1,500,000 for projects that are eligible for New Markets Tax Credits. A limited number of projects may be eligible for loans of up to $2,000,000, subject to Loan Purchaser approval. There is no limit on the number and aggregate amount of loans that can be made at the request of a Member. (b) TCCCF will work closely with Members, prospective borrowers, and other lenders in analyzing and structuring financing transactions that will best meet the needs of both borrowers and other participating lenders. TCCCF will be responsible for Development Loan closings and negotiating the sale of Development Loans to the secondary market pursuant to a written purchase agreement (the "Loan Purchase Agreement''). 7. Credit Reserves: Loan Discounts. (a) The originating Member of each Development Loan shall arrange for the funding of a credit reserve in the amount required by the Loan Purchaser and shall make said funds available to TCCCF on or before the closing of the Development Loan ("Credit Reserve"). Members may allocate funds that they have deposited in the Loan Fund Escrow Account to satisfY the Credit Reserve requirement for individual Development Loans, or require that the borrower provide the reserve. A Credit Reserve of between five and twenty percent (5-20%) of the principal amount of the Development Loan will typically be required for a period of 12 to 18 months following the closing of the sale to the Loan Purchaser. TCCCF will hold and administer all Credit Reserves established in connection with Development Loans made under the Program. TCCCF will release such reserves to the party funding the credit reserve, without interest, only as provided in the credit reserve deposit agreement or similar agreement with the Loan Purchaser. (b) In the event the price offered by the Loan Purchaser is discounted from par value (face amount of the loan), the originating Member will be responsible for arranging funding of the difference between the par value and the loan sale price, said funding to be supplied to TCCCF on or before the closing of the Development Loan. In the event the Development Loan is sold at a premium, the originating 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). (c) Except as set forth in this section, Members do not incur any expenses, costs, or obligations with respect to Development Loans they originate under the Program. All fees and out-of- pocket expenses in connection with the origination of a Development Loan shall be the responsibility of the borrower. The actual credit reserve requirement or any discount from par value will be a condition of the loan purchase commitment. The originating Member may decline to proceed with the Development Loan without any obligation at any time prior to the forrnal written approval of the Development Loan by Member. 8. Loan Closinl! Procedures and Reauirements. TCCCF shall comply with all procedures for draws from, and reimbursement to, the Loan Fund Escrow as set forth in the Loan Fund Escrow Agreement, and further agrees as follows: (a) Closinl! Ag;ent. All loan closings shall be administered by a title company or other closing agent (the "Closing Agent") selected by TCCCF. (b) Loan Fundinl!. No loan may be closed until TCCCF or the Escrow Agent holds funds of the Loan Purchaser or other interim lender in an amount sufficient to purchase the 2 /.5~