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applicant) shall not exceed the participating bank's prime rate plus two percent per <br />annum. Other loan terns shall be determined by the participating lender, except that no <br />repayment period shall exceed ten years and loans by the participating lender and the <br />BRLF must be co- terminus. If the loan recipient's business is sold or Liquidated, the <br />balance of the loan would become due and payable. <br />5. ORIGINATION FEE <br />The applicant is required to pay an Origination Fee at the time of closing in the amount <br />of S150 for the use of the 2% loan funds. It shall be the responsibility of the <br />Participating bank to collect this fee at closing and remit it to the FDA. <br />6. PARTICIPATING LENDERS <br />Participating lenders shall pre - screen loan applications under this Plan to determine <br />whether applications meet the Plan's eligibility requirements, and shall additionally <br />apply their ordinary standards for commercial /industrial improvement loans to such <br />applications. Participating lenders then shall provisionally approve or reject the <br />application, provided that no application can be rejected for any unlawful reason. If an <br />application is provisionally approved, it shall be forwarded to the EDA for further <br />consideration of the BRLF portion of the loan. <br />Participating lenders shall close the loans, obtaining properly executed security <br />agreements, mortgages, promissory notes, and corporate borrowing authorization, as <br />appropriate from loan recipients. At the closing, each loan recipient shall certify that <br />such applicant has read, understands, and will comply with the requirements of this Plan. <br />The participating lender shall provide to the loan recipient such disclosures as may be <br />required by law. Monthly, the participating lender shall remit to the EDA Financial <br />Coordinator at 590 40th Avenue N.E., Columbia Heights, Minnesota 55421 that portion <br />of any loan recipient's monthly payment, which represents repayment of the BRLF <br />portion of the principal and interest on the loan. The EDA shall not be a party to any of <br />the loan documents, but participating lenders, in agreeing to the terms of the Plan, agree <br />to act as the EDA's agent in receiving the EDA's portion of the principal and interest <br />payments on any loan given and further agree to transmit that portion to the EDA, within <br />at least 15 days of receipt. Participating lenders shall provide copies of all loan <br />documents to the EDA along with a participation agreement showing the extent of BRLF <br />participation in the loan. Loan documents shall reflect the entire amount of debt <br />incurred, including the portion owed to the EDA, and in any foreclosure or other <br />collection remedy employed by any participating lender, such lender shall use its best <br />efforts to collect that portion of the debt owed to the EDA as well as that portion owed to <br />the lender. Participating lenders shall have the sole responsibility of determining <br />applicants' credit risk and filing any liens on collateral. <br />7. BUSINESS REVOLVING LOAN FUND REVIEW COIVIMITTEE(BRLF <br />REVIEW COMMITTEE) <br />The EDA will appoint the Review Committee, which shall be composed of one <br />representative from the EDA, one representative with financial expertise from the <br />Columbia Heights business community, and one member of the Columbia Heights City <br />Council. Loan applications, which have obtained preliminary approval from <br />participating lenders, shall be forwarded to the Review Committee for its comments on <br />- 5 - <br />