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<br />Page 2 - Policy # 3 <br />Collections <br /> <br />. <br /> <br />To initiate loan re-payment, staff will send a reminder letter to <br />each 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, A late fee of 5% of one <br />annual payment may be assessed for loan payments not received <br />within 15 days of the due date. <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 to detenuine the extenuating circumstances <br />preventing the Project Sponsor from meeting that obligation, Staff <br />and the Project Sponsor will then agree upon an alternate date by <br />which the payment will be made, If the Project Sponsor makes the <br />payment as agreed all late fees associated with the delinquency <br />may be waived at the discretion of the Director or his designee, <br /> <br />Staff will refer all loans to the Board, for which any individual <br />loan 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 />. <br /> <br />. Deferral of the loan payment <br />. Restructuring the loan tenus <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: <br /> <br />. Refer the bad debt to Central Collections and/or the <br />Attorney General's Office to take appropriate legal <br />action against the Project Sponsor <br />. Forgive all or part of the loan <br />. Continue to work with the Project Sponsor towards <br />a successful re-payment schedule, <br /> <br />Revised 9/14/99 <br />MGS <br /> <br />. <br />