(A) Loan servicing. The SEDF will avoid, wherever possible, the actual servicing of loans owned by the SEDF. It will be the position of the SEDF to negotiate an arrangement with a local financial institution to act as the recipient of any loan repayments generated by assistance made to applicants of the Fund. The servicing institution will make quarterly reports to the SEDF Board as to the payment history on all loans. The Fund Manager will negotiate with the first lender for each project assisted by the Fund, for the first lender to service the Fund's loan. Repayment proceeds from the Fund's loan will be retained in an interest bearing account, available to the Fund on a demand basis.
(B) Loan evaluation. Each six (6) months, the Director shall monitor the projects assisted by the SEDF regarding the recipient's progress in meeting job creation/retention goals established in agreements executed with the SEDF and the city. Results of project evaluations shall be shared with the SEDF Board and the City Council and any recommendations for remedial action required to bring the activities of the SEDF loan recipient's operations into compliance with agreed to performance schedules will be discussed.
(Ord 87-006, passed 1-28-87)