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HomeMy WebLinkAboutResolutions 2000 (03) •• RESOLUTION APPROVING POLICIES AND PROCEDURES FOR COUNTY REVOLVING LOAN FUND Resolution No. 3 6 0 8� St. Croix County, Wisconsin WHEREAS, the St. Croix County Board of Supervisors adopted on June 17, 1997 Resolution No. 14(97) — A Resolution to Approve the Policies and Procedures Guidelines for Administration of a Revolving Loan Fund Established with Funds from a Department of Commerce Grant; and WHEREAS, upon further review of the policies and procedures guidelines, the - - • = •• • - • . o n et nd the County Finance Committee recommends modifications to reduce the time commitment required of County staff members in administering the revolving loan fund and placing more responsibility for administration with others; and WHEREAS, the modified policies and procedures, attached to this resolution, will supersede the previously approved policies and procedures. THEREFORE, the St. Croix County Board of Supervisors hereby adopts the attached policies and procedures for the administration of the County revolving loan fund, and supersede Resolution No. 14(97) with this resolution. Offered by the aft& the Finance Committee on March 21, 2000. Committee Negative Affirmative _ .fir STATE or WISCONSIN COUNTY OF ST. CROIX I, Sue E. Nelson, St. Crate County Clerk, DO HEREBY CERTIFY that the ongoing Is a true and� rnct copy of adopted by the County Board Supervisors at their meeting held Sr \ _ b Sue E. Nelson, St. U C o County Clerk Finance Committee Negative Affirmative St. Croix County Business Revolving Loan Fund (RLF) Administration • St. Croix County Economic Development Corporation (Corporation) The Corporation shall act as the County's Agent and manage the RLF according to the structure identified herein. The Corporation shall appoint a five - member Loan Committee that will review applications and approve loans, renegotiate loan terms and conditions and manage the program for the County. The members shall have backgrounds in commercial lending, business, etc. The Corporation staff will market the loan program. The County reserves the right to replace the Corporation as its agent. • Loan Committee The loan program will only allow participation loans. The Loan Committee will develop the policies and procedures into a manual that it will use to administer the program for the County. The County Board and the Wisconsin Department of Commerce must approve the manual. If the manual is updated or changed, the County Board and the Wis. Department of Commerce must approve the changes. The Chair of the Loan Committee and a representative of the Commission will sign loan commitment letters. • West Central Wisconsin Regional Planning Commission (Commission) The Commission will work with the Loan Committee to develop the manual. The Corporation will contract with the Commission. Commission staffwill work with the Loan Committee and will also report to the County Administrative Coordinator and the Finance Committee. Commission staff will be responsible for processing and recommending loan applications to the Loan Committee, preparing draft loan commitment letters, preparing draft loan agreements and participation certificates, assisting in loan closings, notifying County Staff when to disburse loan funds, maintaining permanent loan files, maintaining contact with lenders and borrowers, and monitoring the covenants not monitored by participating lenders. The staffwill also prepare semi - annual reports for the Wisconsin Department of Commerce and will assist with the accounting records. • Legal Review An outside attorney will be retained by the Corporation to review loan closing documents for signature by the County Board Chair and Administrative Coordinator. The attorney will also provide representation in legal proceedings, if any. Defaults on participation loans will be the responsibility of the private participating lender. If the participating lender does not act to protect the Revolving Loan Fund, the County may institute action through its own representative. • Accounting County staff will establish a segregated interest - bearing fund, account for the use of all program funds, and disburse funds for eligible expenditures. All interest collected on the fund or loan fees must be deposited into the fund and used for loans or administrative costs. Participating Lenders will prepare amortization schedules. Participating Lenders will collect loan payments, allocate principal and interest, maintain loan repayment registers, and send the County portion of the payment to the County. Participating Lenders will send copies of late notices to the Corporation. The County Staff will disburse loan funds to Participating Lenders after receiving a notification letter from the Commission. The Participating Lenders will disburse funds to borrowers based on approved loan applications. The County Staff will make payments for administration expenses after approval by the County Finance Committee. The County staff will send a monthly record to the Commission of payments collected. The Commission will notify the Loan Committee and the County Finance Director of delinquencies. The County staff will maintain financial records that track all payments in and out of the fund including interest earned on the funds. • Administration Costs The County can use up to 15% of all program income which includes all principal and interest payments, interest earned on the fund, and loan fees, etc. These funds may be used for necessary legal fees, consulting fees for credit analysis, business plan reviews, technical assistance, office supplies, copying, postage and related expenses.