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<br />'-' <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />Page 2 - Policy # 3 <br />Collections <br /> <br />To initiate loan re-payment, staff will send a reminder letter to each <br />Project Sponsor 30 days prior to the loan payment due date, <br /> <br />In the event of a delinquency, staff will send a reminder letter to <br />each Project Sponsor every 30 days, <br /> <br />Staff will contact the Project Sponsor by phone concerning a loan <br />payment that is 60 days past due to remind the Project Sponsor of <br />its debt obligation and ~o determine the extenuating circumstances <br />preventing the Project Sponsor from meeting that obligation. Staff <br />will also notify the Project Sponsor that the loan will be referred to <br />the Board, at its next regularly scheduled meeting, for an <br />assessment of a late fee. <br /> <br />Staff will refer all loans to the Board for which any individual loan <br />payment is at least 90 days past due with a specific <br />recommendation to assess a late fee if provided by the loan <br />contract. <br /> <br />Staff will refer all loans to the Board, for which any individual loan <br />payment is at least 180 days past due with a specific <br />recommendation for one of the following actions, depending on the <br />individual circumstance: <br /> <br />. Deferral of the loan payment <br />. Restructuring the loan terms <br />. Assessment of an accelerated loan interest rate <br />. Accelerate the loan <br /> <br />If the delinquency continues, and is at least one year past due, staff <br />will recommend that the Board either refer the bad debt to Central <br />Collections and/or the Attorney General's Office to take, <br />appropriate legal action against the Project Sponsor, or forgive all <br />or part of the loan, <br /> <br />Revised 7/16/99 <br />