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Twin Cities Community Capital Fund Page 2 of If we are a member of the TCCCF and late -r decide to terminate our me- mbership, hover and when will the funds that we deposited in the Fund be returned to us? Membership in the fund is subject to both a participation agreement and a loan fund escrow agreement; which requires members to make a minimum three -yeas commitment to the TCCCF. Members may withdraw their money from the lean fund escrow account anytime after three gears from the date of their deposit. TCCCF will return all member Loan Fund deposits, without interest, within 30 days upon written request of the member. As a member of the TCCCF, do we have the right to appoint a representative to the Board of Directors? No, but a representative of your organization gill be eligible for election to the nine - member Board that wi1l govern the TCCCF. Six of the nine board members wi I'I be elected by the membership at the organization's annual meeting. Since the corporation has three classes of membership (based upon the member's contribution Level) each class of members will elect two directors. The six elected directors will be responsible for filling the three at -large director seats. Who will manage- the Fund? The Northland Institute, a Minnesota nonprofit. corporation established in 1996, will provide all necessary management services- to the TCCCF during at least the first three years of operation. After this initial period, the Board of Directors may either continue to contract for fund management services or hire staff to manage the Fund. Who wi' l l pay for the cost of fund man -a g em e.n-t? The primary revenue sources that will be available to pay for fund management services and all operating expenses are the interest earnings on, the pooled funds contributed. by TCCCF members and loan or-igi'nation fees paid- by our borrowers. Members are not required to pay directly for any services provided by the fund manager that pertain to the structuring of TCCCF loans. Hour will the Fund be recapitalized? The TCCCF will be a se I f -s u sta i-n i n g development re source, with recapitalization of the Fund through the sale of pre - approved loans to a speci.a li zed secondary market for economic development loans. The sale proceeds from TCCCF loans are i- mmed.i.ately returned to the Loan Fund. Through this approach., the TCCCF Loan Fund will be continually recapitalized and funds will be readily available to make new loans at all-. times. What: drives the price paid- for a loan? Institutional investors who purchase economic- development loans seek a market rate of return. Accordingly, loans that are priced at market rates receive par value. Those priced above the market earn a premium, while those priced below the prevailing market are bought at a discount. However, in every case, the originating TCCCF member decides whether http://www,tceef.org/faq.cfm 6/11/2008