BOARD01707

• Board Meeting Date: 9/27/1999
• Description: Construction Fund Borrower Creditworthiness and Financial Need Determination. ‎(Audit Item #8)‎
• Board Meetings - Doc Type: Memo

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POLICY NUMBER: 3

SUBJECT:

CONSTRUCTION FUND AND SEVERANCE TAX
PERPETUAL BASE ACCOUNT LOAN DELINQUENCY,
LOAN RESTRUCTURING AND COLLECTION

EFFECTIVE DATE: October I, 1999

POLICY:

The Colorado Water Conservation Board (CWCB) shall review all
loans for which annual payments are 180 days, or more, past due.
The Board's review shall include an examination of the Project
Sponsor's payment history, Project Sponsor statements regarding
extenuating circumstances and reasons for the delinquent or non-
payment, and the consideration of problem solving opportunities,
including referral for collection,

PURPOSE:

To provide the Board with infonnation regarding past due loan
payments. This policy will allow Project Sponsors a reasonable
time to make late loan payments, restructure their existing loan or
develop other financial solutions to recover from periods of
economic difficulties, drought, flood, or other hardships beyond
their control. This policy will also define how loans will be
referred to collections,

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APPLICABILITY: This policy and procedure applies to ALL current and future loans
from the CWCB Construction Fund and Severance Tax Perpetual
Base Account.

PROCEDURE: The statutes and provISIons in the loan contract and contract
documents provide the Board several options in dealing with
delinquent loan payments, including, but not limited to, the
following:

. Deferral of the loan payment
· Restructuring the loan tenns
· Assessment of a revised loan interest rate
· Assessment of a late charge fee
. Forgive all or part of the loan
· I?ebt referral to the State Central Collection Agency

At every Board meeting, staff will give the Board a comprehensive
delinquency list or Loan Aging Schedule, The report will include
a list of loan payments that are past due and the date payment was
due,

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