(A) In order for the town to make a loan from the Town Revolving Fund, the Town Council of the town must approve the loan by the adoption of a written resolution which must contain the following:
(1) The interest rate of the loan;
(2) The term of the loan;
(3) The form of the note or notes;
(4) The medium of payment;
(5) The place and manner of payment;
(6) The manner of execution of the note or notes;
(7) The terms of redemption;
(8) The funds or sources of funds for which the notes or notes are payable, which may be any funds and sources of funds available to the borrower; and
(9) Any other provisions not inconsistent with I.C. 5-1-14-14.
(B) In order to assist the Town Council in making determinations regarding loans from the Town Revolving Fund, the town hereby creates a Town Revolving Fund Loan Advisory Committee, hereinafter referred to as Loan Committee. The Loan Committee shall consist offive members as follows:
(1) The Town Manager;
(2) The Clerk-Treasurer;
(3) One Town Council member, to be appointed by the Town Council President and who may be the Town Council President, to serve a four-year term, with the exception of the first term, which shall end on the first Monday in January 2010 or upon the appointment of a replacement on the first date of the appointment thereafter;
(4) One member of the Town’s Plan Commission, to serve a four-year term, with the exception of the first term, which shall end on the first Monday in January 2009 or upon the appointment of a replacement on the first date of the appointment thereafter. In the event that an appointee is no longer serving on the Town’s Plan Commission, the appointee shall be considered to have resigned on the last effective date on which the appointee served on the Town’s Plan Commission; and
(5) The town’s representative to the Wayne County EDC, whose term is to coincide with the appointee’s service on the Board of the Wayne County EDC. In the event that the town does not have a current representative to the Wayne County EDC, the Town Council President may appoint a citizen member to the Loan Committee, who must reside in the corporation limits. In the event that this appointee is a citizen member, the appointee’s term shall be for four years, with the exception of the first term, which shall end on the first Monday in January 2008 or upon the appointment of a replacement on the first date of the appointment thereafter. In the event that a citizen member is appointed while the town does not have a representative to the Wayne County EDC and the town subsequently appoints a representative to the Wayne County EDC, the citizen member shall be replaced by the town’s representative to the Wayne County EDC.
(C) The Loan Committee is strictly advisory in nature, and is formed for the sole purpose of studying, gathering information, and making recommendations to the Town Council regarding potential loans to be made from the town Revolving Fund based on the criteria established. The Loan Committee shall have no authority or capacity to make decisions for or on behalf of the town or bind the town to any obligation of any nature. The town may grant or deny a loan from the Town Revolving Fund with or without a recommendation or review by the Loan Committee, and contrary to any recommendation which may be made by the Loan Committee.
(D) The Loan Committee may recommend further loan criteria that the committee deems to be in the town’s best interest in considering applications for loans from the Town Revolving Fund, and any such criteria may be adopted by the Town Council as criteria for the loans.
(E) The Town Council, as part of its resolution under division (A) above, may charge an applicant a loan processing fee not to exceed one point on any loan, which may be payable at closing or added to the principal amount of the loan to form an enlarged principal balance.
(F) All applicants for a loan from the Town Revolving Fund shall submit an application requesting the loan and the application must be submitted to the Town Council care of the Clerk-Treasurer or Town Manager. The Town Council may provide a form for the purpose, and if the town provides the same, any applicant is required to use the town’s form in applying for such a loan. As part of the application, the Town Council or the Loan Committee may request any supporting documentation from the applicant that the Town Council or Loan Committee believes are necessary in evaluating the application.
(G) The Town Council may proceed on making a decision on the application without referring the same to the Loan Committee, or the Town Council may refer the application to the Loan Committee for review and recommendation, at the discretion of the Town Council. In the event that the Town Council refers the application to the Loan Committee for review and recommendation, the Town Council may, at its discretion, proceed with denying or granting a loan application without waiting on the review and recommendation of the Loan Committee. In the event that the Town Council refers a loan application to the Loan Committee, the Loan Committee shall work to review the application in a reasonably prompt fashion, with any review and recommendation being completed no more than 30 days subsequent to the receipt thereof by the Loan Committee.
(Ord. 1-2006, passed 2-6-2006; Am. Ord. 6-2006, passed 5-1-2006)