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Page 22 of _� <br /> 9. Between 3 to 8 Projects will be made each year from Program Proceeds. <br /> 10. An interest rate varying between 30 percent of Prime and the Prime rate <br /> will be provided to Program Proceeds borrowers. This rate will be fixed <br /> or variable. It may be deviated from with a vote by the majority of the <br /> Board of Directors. <br /> 11. Progra� Proceeds shall only be used by a third party beneficiary for the <br /> following types of business expenses: to purchase or improve real <br /> property, to purchase machinery or equipment, or to provide working <br /> capital for inventory, accounts receivable, etc. <br /> 12. Program Proceeds shall not be used by a third party to refinance existing <br /> debt, or as compensating balances or as a reserve for contingent <br /> expenses. <br /> 13. Repayment maturities for Program Proceeds Projects are as follows: 3 to <br /> 7 years for working capital , and up to 10 years or the life of the <br /> assets, whichever is less, for machinery and equipment or real property. <br /> 14. Origination fees on Program Proceeds will be a one-time charge of 1.5X. <br /> Other charges to third party beneficiaries may include the actual costs <br /> of legal fees. <br /> 15. The area representative of the Department' s Economic Development Division <br /> shall be notified of each meeting of the Grantee' s Board of Directors, <br /> Loan or Investment Review Committee, or other decision making body, and <br /> shall be allowed to attend, as an observer, all sessions of the <br /> proceedings of such entities. <br /> 16. Operating Procedures -- The Grantee' s specific systems and procedures to <br /> assure prudent operation of the Loan/Investment activity ( including <br /> anticipated federal or state regulatory oversight) shall be as follows: <br /> the Grantee shall pursue the activities of the community development <br /> corporation in accordance with the regulations and restrictions that <br /> apply to the organization as it is established. <br /> 17 . Procedures For Processing A Project Request -- The daily operating <br /> procedures for processing third party beneficiary Project applications <br /> ( in accordance with the standards and financing policies established for <br /> the portfolio) shall be as follows: Projects will be identified by the <br /> professional staff and through referral from the City of Decatur, Macon <br /> County, the Decatur Industry & Technology Center, the Decatur/Macon <br /> County Economic Development Foundation and other state and local business <br /> development offices. The professional staff person, with assistance from <br /> the Board and City staff, shall : <br /> a. Present a thorough presentation to the Project Review Committee, <br /> including a detailed written package. <br /> � b. Structure the proposed Project, working with the third party <br /> beneficiary applicant and other private and public sector lenders. <br /> Staff shall propose the amount, rate, term and collateral to be <br /> secured for the Project. <br /> - 22 - <br />