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18. <br /> <br />19. <br /> <br />20~ <br /> <br />extent of RLF participation in the loan. Loan documents shall reflect the entire amount of <br />debt incurred, including the portion owed to the EDA, and in an)' 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; however, any amount so collected shall be allocated first to interest due to the <br />participating lender, then to principal due to the participating lender, then to reasonable <br />allowable collections costs, and the remainder to the EDA. Participating lenders shall have <br />the sole responsibility of determining applicants' credit risk and filing any liens on <br />collateral. <br /> <br />THE EDA BOARD OF COMMISSIONERS SHALL CONSIDER EACH APPLICATION <br />AT ITS REGULARLY SCHEDULED OR SPECIAL MEETING IMMEDIATELY <br />FOLLOWING RECEIPT OF THE APPLICATION FROM THE LENDER <br /> <br />The EDA Board of Commissioners shall approve the application for RLF participation or <br />reject such participation, stating the reasons why. Such rejection shall not preclude <br />resubmission of the application with appropriate modifications. At the time of an), <br />applicatioffs approval by the EDA Board or Commissioners, an appropriate amount of <br />money in the RLF shall be reserved to cover the RLF's anticipated participation in the loan <br />or the EDA shall indicate that insufficient funds for such participation then exist, in which <br />case the application shall be placed on a waiting list until such time as funds become <br />available or the application is withdrawn, The EDA shall communicate its actions promptly <br />to the participating lender. At any time prior to closing on a loan, the participating lender <br />may disapprove an application which had obtained preliminary approval, based upon <br />changed circumstances or for any other reasonable cause. <br /> <br />LOAN PROCEEDS SHALL BE PAID TO THE PARTICIPATING LENDER AND <br />LOAN RECIPIENT <br /> <br />All invoices and other necessary, documentation, as related to the project costs, shall be <br />provided to the EDA or its agent prior to the disbursement of funds. <br /> <br />RLF loan recipients must close on the loan within thirty (30) days of final approval by the <br />EDA. If not closed within the thirty (30) day period, the EDA reserves the right to cancel <br />its commitment of funds and use those funds for other RLF loans. <br /> <br />Only those funds lent for the loan recipient's project, activity or use stated in the applicant's <br />loan application ma}, be collected by the lender prior to collection of the EDA's share of the <br />total loan. <br /> <br />THE APPLICATION SHALL BE MADE ON FORMS APPROVED BY THE EDA AND <br />PARTICIPATING LENDERS <br /> <br />These shall include information detailing the applicant's loan request and ~anting <br />permission for pre-inspection of any real property involved in the loan request. The <br />application shall contain proposals from suppliers on any machinery and equipment to be <br />purchased and formal accepted contingent offers on any real property proposed for <br />purchase with RLF funds. <br /> <br />EDA Financing <br />Page 7 of 7 <br /> <br /> <br />