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<br />- 2- <br /> <br />. <br /> <br />Discussion <br /> <br />It does not appear that implementing Policy #16 will subject the CWCB to additional laws, <br />such as the federal Truth-In-Lending Act, 15 U.S.C. gl60l et sea.. The Truth-In-Lending Act does <br />not apply to CWCB loans because the Act only applies to "credit sales," that the Act defines as "any <br />sale in which the seller is a creditor." 15 U.S.C. g1602(g). The Uniform Consumer Credit Code <br />(Articles 1-9, Title 5, C.R.S.) does not apply to loans for business, investment or commercial <br />purposes, or to loans primarily for an agricultural purpose. g5-l-30l(15)(b), C.R.S. (2002). The <br />Colorado Banking Code of 1957 (Articles 1-11,22 and 23, Title 11, C.R.S.) only applies to banks <br />and trust companies. gll-1-105(1), C.R.S. (2002). <br /> <br />e <br /> <br />Upon evaluating whether it would be better to add the fee to an authorized loan amount <br />rather than subtract it from the loan amount, staff has concluded that it would be better to add the fee <br />to the authorized loan amount. This procedure would allow the borrower to receive exactly their <br />required loan amount rather than 99% of it. The Board could then recommend to the legislature the <br />required loan amount plus the origination fee to be included in the Construction Fund Projects bill <br />and staff could collect the fee administratively through the loan contracting process. The only loan <br />amount that the fee would have to be subtracted from would be a loan for $1,000,000, the upper <br />limit for small project loans that do not require legislative appropriation. In that case, the borrower <br />would receive $990,099.01 of the $1 million with the remaining 1 % origination fee making up the <br />difference. <br /> <br />Staff recommends implementing this policy on January 1, 2003 since the current loan <br />applicants have not been informed of the proposed fee schedule. Any loans approved by the Board <br />after that date would be subject to the service charges. The loans being presented at the November <br />board meeting, and included in this years Construction Fund Projects Bill, would therefore not be <br />subject to the service charges. <br /> <br />e <br /> <br />Recommendation <br /> <br />Staff recommends the Board adopt the proposed Policy #16 as shown in the attached policy <br />statement. <br /> <br />e <br /> <br />Flood Protection. Water Project Planning and Financing. Stream and Lake Protection <br />Water Supply Protection. Conservation Planning <br />