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					                                                              ATLFA TLM - TOC
                                                              Page 1
                                                              01/16/08

                        ASSISTIVE TECHNOLOGY LOAN AUTHORITY
                                  Telework Loan Manual



TABLE OF CONTENTS



TOPIC                                        SECTION      PAGES DATE

General – Section 100

      Purpose of ATLFA                       100.1            1     01-08
      Programs                               100.2            1-2   01-08
      Uses of ATLFA Funds                    100.3            1     01-08
      Definitions                            100.4            1-3   01-08
      Fair Lending Guide                     100.5            1     01-08
      Credit Criteria Guide                  100.6            1     01-08
      Consumer Eligibility Guide             100.7            1-2   01-08

Product Profiles – Section 200

Consumer
     Non-Guaranteed Loans                    200.1            1     01-08
     Guaranteed Loans                        200.2            1     01-08
     Direct Loans                            200.3            1     01-08

Business
      Non-Guaranteed Loans                   201.1            1     01-08
      Guaranteed Loans                       201.2            1     01-08


Underwriting and Procedures – Section 300

Consumer
     Application Process                     300.1            1     01-08
     Loan Committee                          300.2            1     01-08
     Non-Guaranteed Loans                    300.3            1     01-08
     Guaranteed & Direct Loans               300.4            1-2   01-08
     Treatment of Debt                       300.5            1     01-08
     Treatment of Income                     300.6            1-2   01-08
     Other Procedures                        300.7            1     01-08




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                                                           ATLFA TLM - TOC
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TABLE OF CONTENTS



TOPIC                                           SECTION   PAGES DATE
Business
      Forms of Business                         301.1      1     01-08
      Application Process                       301.2      1     01-08
      Types of Financial Information            301.3      1     01-08
      Non-Guaranteed Loans                      301.4      1     01-08


Credit and Collateral Documentation – Section 400

Consumer Application and Closing Documents      400.1      1-2   01-08
Business Application and Closing Documents      400.2      1     01-08


Loan Collection – Section 500

Collection Policies                             500.1      1-5   01-08




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                                                                             ATLFA TLM 100.1
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SECTION 100.1                      PURPOSE OF ATLFA

The General Assembly of Virginia established the Assistive Technology Loan Authority (ATLFA)
in 1995. Its purpose is to provide assistance in the purchase of assistive technology equipment,
which is designed to enable persons with disabilities to become more independent or more
productive members of the community with an improved quality of life. The organization
changed its name in October 2007 to the NewWell and remains the ATLFA in Virginia Code.

The ATLFA is a separate Authority of the Commonwealth of Virginia and operates with financial
support from the Commonwealth of Virginia, the US Department of Education through the
National Institute on Disability and Rehabilitation Research, private foundation grants and
individual donations.

ATLFA provides loans to individuals with disabilities within the Commonwealth of Virginia for the
purpose of acquiring assistive technology, other equipment, or other authorized purposes
designed to help such individuals become more independent. The ATLFA also provides loans
to small businesses and non-profit organizations within the Commonwealth of Virginia for the
purpose of acquiring assistive technology to employ/retain individuals with disabilities or to
facilitate ADA modifications benefiting the disability community. The ATLFA shall be
administered and managed by the Board of the Authority. The ATLFA mission is to promote
alternative resources for Virginians with disabilities to acquire assistive technology that can
enhance their independence and improve their quality of life.

Programs of the Authority include credit financing of assistive technology, computers and other
equipment for 1) Virginians with disabilities or 2) Virginia businesses to employ/retain individuals
with disabilities. A key feature of the program, which works through a participating financial
institution, is to provide loans with lower interest rates and more favorable terms and conditions.
The ATLFA also provides loan guarantees and makes direct consumer loans so that individuals
with disabilities and their families may acquire assistive technology.

This manual provides guidance to the ATLFA Board, staff and any other individuals working on
behalf of ATLFA to make, facilitate or guarantee loans. The ATLFA Board of Directors shall
approve all procedures included in, and added to this manual and ensure consistency with the
Code of Virginia and Bylaws of the organization. The Authority shall maintain and distribute the
manual.




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                                                                              ATLFA TLM 100.2
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SECTION 100.2                       TELEWORK PROGRAMS

The ATLFA has developed loan programs to accommodate the needs of its customers, to meet
its fiduciary responsibilities, and to follow the appropriate sections of the Code of Virginia.
These programs include low interest loans made through a financial partner, guaranteed loans
made through a financial partner, and direct loans made by the ATLFA. The Board of Directors
may make other types of loans to better meet the needs of its customers.

Telework loans are available to Virginians with disabilities requiring credit financing for
computers and other equipment, including adaptive equipment and / or modifications to their
home that will enable them have an employment outcome working from their home or
residence. The ATLFA will make Telework loans to individuals who require computers and other
equipment in order to obtain employment maintain employment or to establish a self-
employment enterprise while working from their home. Telework loans are intended to remove
an existing barrier to employment such as lack of transportation, attendant care, or disability
related situations. These equipment loans should complement the proposed work that may
overcome these existing barriers. It is necessary for the applicant to be in an appropriate
Telework worksite and that the equipment requested meets the definition as described in
section 100.4. Businesses may also borrow Telework funds, which will lead to a telework
employment outcome for one or more Virginians with a disability as long as the individual, not
the business retains title to the equipment. Telework loans must be likely to increase income
through telework, or prevent income loss from losing a job or business.

The Board may delegate to a loan committee the authority to review and approve or deny loan
applications. Any decisions made by the committee are based upon information provided to or
obtained by the Board and are in accordance with criteria established by the Board and subject
to the Board’s ratification at its next regular meeting.

Fees and charges may be assessed to applicants and borrowers of any of the Authority’s
programs, in accordance with the Code of Virginia. These fees may be for application,
guarantee, closing, administrative or insurance purposes, as determined to be necessary by the
Board. Loans made directly by the ATLFA will have terms and interest rates set periodically by
the Board.

Services

    A. Information and Referral is an optional service to all individuals and businesses that
       contact the ATLFA to inquire about loans. The ATLFA and the Virginia Assistive
       Technology System (VATS) staff may suggest additional resources to consumers who
       need assistance with funding, identification of appropriate assistive technology, and/or
       identification of vendors.




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                                                                              ATLFA TLM 100.2
                                                                              Page 2
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    B. Consumer Counseling. The ATLFA will purchase consumer counseling for any applicant
       who requests it. Local Centers for Independent Living (CIL) staff will assist in device
       selection, application completion, or review basic consumer credit principles with
       individuals needing such services. This optional service is also available to those who fall
       behind on their loan payments and/or suggest resources for consumer counseling locally.

    C. Loan Guarantees. The ATLFA will guarantee consumer loans up to $30,000 for
       applicants who meet its qualifying criteria, but are unable to qualify for a loan with its
       financial partner. The Board of Directors will make exceptions to this limit where there is a
       demonstrated need and ability to repay.

    D. Interest Rate Subsidy: The ATLFA pays an administrative fee to its financial partner in
       order to reduce the interest rate charged or to provide technical assistance to ATLFA
       customers. This lowered interest rate is available on all loans, whether guaranteed or not.
       The ATLFA may make a partial principal reduction in lieu of an interest rate subsidy where
       it benefits both the consumer and the ATLFA.




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                                                                           ATLFA TLM 100.3
                                                                           Page 1
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SECTION 100.3                     USES OF ATLFA FUNDS


The Code of Virginia requires that the loan "… shall be used to provide loans to individuals with
disabilities within the Commonwealth for the purpose of acquiring assistive technology, or
other equipment, or other authorized purposes designed to help such individuals become
more independent. ATLFA shall also be used to buy down interest rates of lending institutions
making such loans and provide a loan guarantee for loans made by lending institutions for such
purposes. The ATLFA shall be used only when, in the discretion of the Board, loan applicants
have met eligibility criteria and the release of money is deemed appropriate."

The Code also indicates that "ATLFA shall be administered and managed by the Authority. The
costs and expenses of maintaining, servicing and administering ATLFA may be paid out of
amounts in ATLFA."

While the Code of Virginia enables the ATLFA to establish programs for loans and other
authorized purposes, use of available ATLFA funds are subject to any conditions upon which
grants or contributions are made. Thus, an applicant for a loan must meet the criteria of being
a "qualified borrower" and must be purchasing assistive technology or meet other authorized
purposes of the Authority. Additionally, the applicant must meet any income and credit criteria
established by the Authority, and the ATLFA must have available resources without restrictive
conditions in order to obtain a loan from the ATLFA.

Should the demand for loans exceed available resources, the ATLFA Board may make loans
available subject to certain priorities. The ATLFA does not make loans for the purpose of re-
financing an existing loan.

In conjunction with the participating bank, the ATLFA Board of Directors may use the ATLFA to
provide an interest rate subsidy for qualified applicants approved for guaranteed and non-
guaranteed loans. ATLFA Direct loans will be set according to the interest rate, terms and
conditions established by the Board.




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                                                                         ATLFA TLM 100.4
                                                                         Page 1
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SECTION 100.4                           DEFINITIONS

Ability to Repay the Loan is determined when an individual's debt to income ratio (assessing
all income and other expenses) meets the standards set by the Board or its financial partner or
when a business’s cash flow and credit standards meet the criteria set by the Board or its
financial partner.

Acronyms used mean the following: (ADA) Americans with Disabilities Act; (ATLFA) Assistive
Technology Loan Authority, (CSF) Consumer Service; (LTV) Loan to Value; (MSRP)
Manufacture’s Suggested Retail Price; (NADA) National Automotive Dealers Association; Self
Employment Enterprise (SEE); (UCC) Universal Commercial Code and (WSJ) Wall Street
Journal.

Assistive Technology (AT) means any item, piece of equipment device, or modification that
enables an individual with a disability to improve his or her independence and quality of life.

The Authority means the Assistive Technology Loan Authority and is used as an abbreviation
of ATLFA.

Authority means the individual appointed to administer, manage and direct the affairs and
activities of the Authority.

Board means the twelve individuals appointed by the Governor to be the Board of Directors of
the Assistive Technology Loan Authority. The Board meets quarterly, or as needed, to attend to
the business of the Authority and to make loan decisions or to ratify the decisions of the Loan
Committee.

Business Principal Owner is defined as an owner with > 20% ownership in the business.

Business Purpose Loan is defined as a loan application from a non-profit organization,
corporation, partnership, or individual/sole proprietorship for business purposes that will be
repaid from the cash flow of the business.

Consumer Purpose Loan is defined as a personal loan application from an individual(s),
where the loan is to be repaid from the income of the individual(s).

Creditworthy Business is one who has demonstrated financial stability; good credit history and
has sufficient cash flow to repay the loan.

Creditworthy Consumer is one who either has a good credit history with no adverse credit
problems and/or an individual who is actively addressing his or her credit problems. A
creditworthy individual may also be one whose credit problems were related to excessive
disability related expenses.



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                                                                            ATLFA TLM 100.4
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Debt (for consumer purpose loans) is defined as the monthly mortgage/rent payment, monthly
payments for existing secured and unsecured loans including credit cards, alimony/child care
obligations, and the monthly payment for the requested ATLFA loan.

Debt Service Coverage (for business purpose loans) is defined as business income divided by
business debt including the new loan payment.

Delinquent Account is any loan made directly by the ATLFA or loan made by a participating
financial institution that is guaranteed by the ATLFA that has not been paid as agreed.

Equipment is any mechanical or electronic device or hardware apparatus, software or
telecommunication system necessary to perform telework, as well as installation cost and/or
training needed to use the equipment properly, maintenance agreements and extended
warranties for the equipment, and maintenance and repair expenses for the equipment.
Equipment does not include the reoccurring fees associated with the ongoing use of the
equipment. Equipment includes office furniture, home modifications for office accessibility,
supplies or inventory related to operating equipment.

Equipment also includes automobiles, necessary to perform Telework, but does not include
extended warranties, insurance, maintenance or repairs to automobiles.

Global Debt Service Coverage (for business purpose loans) is defined as combined business
and personal income divided by combined business and personal debt including the new loan
payment.

Income is defined as all wages, salary, commissions, interest, pensions, and other sources of
financial support, paid or in kind including Supplemental Security Income (SSI), Social Security
Disability Income (SSDI) and retirement benefits. Adjusted Gross Income (AGI) includes non-
taxable income made equivalent to taxable income by increasing the non-taxable income by
25%.

Individual with a Disability is a person who self identifies a limitation to a major life function,
such as walking, talking, seeing, hearing, taking care of oneself, learning, becoming employed
or maintaining employment.

Loan Committee means the group of individuals to which the Board has delegated the
authority to review and approve or deny loan applications.

Loan Fund means the permanent and perpetual consisting of such monies as may be
appropriated by the General Assembly, gifts, bequests, endowments or grants from the United
States government, its agencies and instrumentalities, all receipts by the ATLFA from loans
made by it, all income form the investment of moneys help in the ATLFA, and any other
available sources of funds, public and private.



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                                                                             ATLFA TLM 100.4
                                                                             Page 3
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Participating Bank is a financial institution that has agreed to make loans to qualifying
borrowers and businesses by signing an agreement with terms and conditions meeting ATLFA
program standards.

Qualifying Borrower is defined as any resident of Virginia with a disability, or who has a family
member with a disability. That person must demonstrate (i) that the loan will be used to acquire
a computer or other equipment designed to help him/her obtain or maintain employment
through telework/telecommuting, and (ii) the ability to repay the loan.

Qualifying Business Borrower is defined as any small business or non–profit organization in
Virginia that demonstrates: (i) that the loan will be used to acquire a computer or other
equipment designed to assist one or more Virginians with disabilities to obtain or maintain
employment through telework/telecommuting. (ii) that the individual(s) with a disability will retain
title to the equipment. and (iii) that the business has demonstrated the ability to repay the loan.

Resident is a person domiciled within the Commonwealth of Virginia at the time of the
application.

Self-Employment Enterprise (SEE) is an employment outcome in which the individual owns
his or her own business, for purposes of this program; he/she is usually a sole proprietor. The
ATLFA program will only approve SEE loans that have been underwritten and approved by
qualified personnel of micro-enterprise loan programs or the Department of Rehabilitative
Services SEE program.

Telework, often referred to as Telecommuting, are interchangeable terms for an employment
outcome in which the individual conducts business activities that would otherwise be completed
at an office or workplace. Telework is employment in which the individual uses their home as an
office or “home base”, but for whom much of the workday is completed at remote locations.
Contractors, traveling salespersons, and individuals who are self-employed may qualify. For
purposes of this program, it is assumed that a person with a disability will become employed or
self employed as a result of the loan. However, persons who are currently employed, but must
work from their home as a result of the limitations of their disability may also be eligible as a
telecommuter. Telework is telework whether it’s full time, part time, periodic or ad-hoc. The
key is the activity, not how often it’s done.




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                                                                           ATLFA TLM 100.5
                                                                           Page 1
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SECTION 100.5                     FAIR LENDING GUIDES


The ATLFA operates its programs to provide assistance with loans and in the purchase of
Assistive technology, other equipment, or other authorized purposes designed to enable
persons with disabilities to become more independent or more productive members of the
community with an improved quality of life.

The credit criteria will be applied equitably and fairly to all applicants without regard to the
applicants’ race, gender, national origin, color, marital status, religion, age, disability or any
factor other than sound lending and credit practices. All borrowers must be legally able to enter
into a binding contract with a lending institution.

The ATLFA will only guarantee loans to Virginians with disabilities and their family members or
to Businesses within the Commonwealth of Virginia who meet the Board’s standards of being
creditworthy and demonstrate the ability to repay the loan.

The ATLFA does not disclose any nonpublic personal information about its’ customers or
former customers to anyone, except as permitted by law. In addition, the ATLFA maintains
physical, electronic, and procedural safeguards that comply with federal regulations to guard
the nonpublic personal information.




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                                                                              ATLFA TLM 100.6
                                                                              Page 1
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SECTION 100.6                      TELEWORK CREDIT CRITERIA GUIDE

While the Authority has more flexible loan criteria than those of most lending institutions, it must
have a reasonable expectation that the borrower will repay the loan. Generally, the ATLFA is
looking for a pattern of stability in its loan applicants in areas such as type of residence, length
of time at residence and length of time at present job. It is also looking for a pattern of stability
with respect to credit history. Where credit problems have arisen, it is essential that the
applicant is doing something about those problems. This includes reducing current debt ratio,
assuring cash flow is sufficient for living expenses and loans, and making written arrangements
with borrowers.

The two most important criteria for an ATLFA loan are credit history and capacity to repay. A
pattern of adverse credit that cannot be adequately explained and is not being dealt with will
result in a declined application. Similarly, an individual who does not have adequate resources
after paying all other obligations (as measured by an actual or projected debt to income ratio
may not be approved for a loan or a loan guarantee.

Generally, the ATLFA will not provide loans for terms that exceed the amortized value or the
general life expectancy of the equipment. While the Board may make exceptions for individuals
who can prove their ability to repay, a 50% debt to income ratio (including the monthly payment
for the new loan) is typically required for loan approvals. Applicants who do not meet that
requirement may provide a qualified co-applicant.

The ATLFA will ask individuals having debt or credit issues to provide additional financial and/or
other information in order to qualify for a loan guarantee. Individuals having unacceptable credit
may provide a qualified co-applicant. If the ATLFA cannot verify that an applicant's poor credit
history is directly related to the individual’s disability, the ATLFA will generally decline an ATLFA
guaranteed loan application. The ATLFA will also generally deny individuals who do not have
stability in their financial and personal lives.

People with disabilities who will be exploring a telework option will include those who are
unemployed, living on SSI or SSDI and/or have high disability related expenses which prevent
them from considering any type of credit financing, even one with lower monthly payments. The
ATLFA proposes to serve this low-income/high-risk population with the establishment of an
interest-only loan program. This program will offer loans at a 5% interest rate for a 90-day
period with the expectation that the borrower only pays back the monthly interest on the loan
until he or she obtains telework employment and begins to receive salary or wages. For SEE
employment outcomes, this period may be extended for an additional 90 days with evidence
that the business plan will begin to show a positive cash flow at the end of that period of time.
Individuals must have a written job offer from an employer, with the estimated wages or salary.
That projected salary will be used to calculate that person’s debt to income ratio.




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                                                                             ATLFA TLM 100.7
                                                                             Page 1
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SECTION 100.7               CONSUMER ELIGIBILITY GUIDE

General Conditions for Approval of Telework Loans

Telework loans will be approved on a case-by-case basis with determination based upon
existing policies and procedures and the confirmation of the following steps:

       1. established proof of disability
       2. determination that the disability itself creates a barrier(s) to employment
       3. determination that the proposed telework overcome the barrier(s) to employment
       4. if so, is the proposed location appropriate based on its relationship to the proposed
          telework , and
       5. if so, determine that the equipment needs will make the proposed telework possible

Examples of Barriers to Employment for Possible Telework Loans

A. A woman with quadriplegia gets permission from her employer to work at home two days a
   week to get easier access to attendant care

B. A man with fibromyalgia can’t work a regular schedule due to fatigue and illness. He starts a
   greeting card business and uses a loan to buy printing equipment, toner, card stock and
   envelopes.

C. A woman with a personality disorder loses jobs due to conflicts with co-workers. She gets a
   loan to set up an electronics shop at home, paying for machinery, tools, and electronics
   school.

D. A former trucker who has trouble working for others due to anxiety and paranoia decides to
   become and owner/operator. She gets a loan to buy a truck and take driver’s ed. to update
   her skills.

A telework loan may be approved only if the loan has a very high likelihood of enabling a
Virginia resident with a disability to either (a) increase income through telework or (b) initiate
telework to avoid losing income through a loss of or reduction in employment or self-
employment. A telework loan will generally be considered to meet this criterion if the equipment
to be purchased with the loan will assist the individual with a disability to do at least one of the
following:

       1. Begin telework for an employer when the individual was previously unemployed;
       2. Increase income by increasing work hours and/or hourly wages in an existing job
           through telework;
       3. Increase income by telework in addition to an existing job;
       4. Remain employed at his/her current level, and prevent job loss or a reduction in
           earnings, through telework; or


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                                             ATLFA TLM 100.7
                                             Page 2
                                              01/16/08


     5. Initiate or expand self-employment




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                                                                        ATLFA TLM 200.1
                                                                        Page 1
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SECTION 200.1                   TELEWORK PRODUCT PROFILE

                                    Non-Guaranteed Loans

Product Summary: Installment loans are offered to ATLFA loan applicants through the
financial partnership arrangement. All loan applications are evaluated for a non-guaranteed
loan using the Bank’s credit standards with modifications negotiated by the ATLFA. The
profiles of the products offered as non-guaranteed loans are as follows:


Type of Loan:            Secured                    Unsecured           Home Equity

Purpose:                 New Vehicles               Equipment           Home Modifications
                         Used Vehicles

Minimum Loan:            $4,000                     $4,000              $4,000

Rate:                    Fixed rate; based on product type, credit quality and term of loan.
                         Interest rate buy down of 4% will be applied to each loan.

Rate Floor:              3%

Term:                    New Vehicles               5,000 or less
                         Up to 78 months            Up to 48 months     Up to 20 years


                         Used Vehicles              > $5,000
                         Up to 72 months            Up to 60months


Loan to Value:           New: 100% MSRP                                 Up to 100% LTV
                         Used: 115% NADA

Payments:                Fixed; amortized using the term and rate of the loan.




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                                                                            ATLFATLM 200.2
                                                                            Page 1
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     SECTION 200.2                TELEWORK PRODUCT PROFILE

                                        Guaranteed Loans

     Product Summary: The Authority may provide loan guarantees, for applications declined
     by the financial partner, if the application meets the credit standards established by the
     ATLFA. The profiles of the products offered are as follows:


     Type of Loan:         Secured                    Unsecured            Home Equity

     Purpose:              New Vehicles               Equipment            Home Modifications
                           Used Vehicles

     Minimum Loan:         $4,000                     $4,000               $4,000

     Maximum Loan:         $30,000                    $30,000              $30,000

     Rate:                 Fixed, using Wall Street Journal Prime lending rate. Interest rate buy
                           down of 4% will be applied to further reduce the rate.

     Floor:                3%

     Term:                 New Vehicles               $5,000 or less
                           Up to 78 months            Up to 48 months      Up to 20 years

                           Used Vehicles              > $5,000
                           Up to 72 months            Up to 60 months

     Loan to Value:        New: 100% MSRP                                  Up to 100% LTV*
                           Used: 115% NADA
                                                                           Up to 115% LTV*
                                                                           Bureau Score: > 600
                                                                           Home Improvement
                                                                           loan

     Payments:             Fixed; amortized using the term and rate of the loan.


* Value of real estate is based on current (within 1 year) assessment or appraisal. An ATLFA
financial partner’s approved appraiser must perform appraisal.




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                                                                         ATLFA TLM 200.3
                                                                         Page 1
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SECTION 200.3                    TELEWORK PRODUCT PROFILE

                                       Direct Loans

Product Summary: The ATLFA may offer interest only Telework installment loans directly to
individuals with disabilities who are currently unemployed, living on SSI or SSDI or who have
high disability related expenses.


Type of Loan:             Secured and Unsecured

Purpose:                  Purchase of Computers or Other Equipment, including assistive
                          technology devices

Minimum Loan:             None

Maximum Loan:             $4,000

Rate:                     5%

Floor:                    5%

Term:                     Up to 60 months

Payments:                 Interest only, for first 90 days. Payments are due monthly.

Collateral:               UCC filing on AT equipment purchased




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                                                                        ATLFA TLM 201.1
                                                                        Page 1
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SECTION 201.1                   BUSINESS PRODUCT PROFILE


                                      Non-Guaranteed Loans

Product Summary: Business loans are offered to ATLFA loan applicants through the financial
partnership arrangement. All loan applications are evaluated for a non-guaranteed loan using
the Bank’s credit standards with modifications negotiated by the ATLFA. The profiles of the
products offered as non-guaranteed loans are as follows:



Type of Loan:            Secured and Unsecured

Purpose:                 ADA Modifications, Purchase of AT Equipment/Other Equipment

Minimum Loan:            $10,000

Maximum Loan:            $500,000

Rate:
         Loan Amount                            Fixed Rate                       Variable Rate
          $10,000 < 50,000         Internally Posted Rate Minus 1.5%                Prime
         $50,000 < 100,000         Internally Posted Rate Minus 1.25%               Prime
        $100,000 < 250,000         Internally Posted Rate Minus 1.00%               Prime
        $250,000 < 500,000          Internally Posted Rate Minus .75%               Prime
               Floor                                 4%                           No Floor

Term:                    Unsecured                    Auto              Equipment
                         Up to 36 months              Up to 72 months   4 to 6 years

Payments:                Fixed; amortized using the term and rate of the loan.

Collateral:              UCC filing
                         Title to vehicle
                         Blanket lien on assets
                         Specific lien on equipment




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                                                                        ATLFA TLM 201.2
                                                                        Page 1
                                                                        01/16/08


SECTION 201.2                   BUSINESS PRODUCT PROFILE


                                     Guaranteed Loans

Product Summary: The ATLFA may provide loan guarantees for business applications
declined by the financial partner, if the business meets the credit standards established by
ATLFA. The profiles of the products offered are as follows:


Type of Loan:            Secured and Unsecured


Purpose:                 ADA Modifications, Purchase of AT Equipment/Other Equipment


Minimum Loan:            $10,000


Maximum Loan:            $50,000


Rate:                    Fixed Rate                                     Variable Rate
                         Internally Posted Rate Minus 2.0%              Prime minus .50%


Floor:                   4%                                             No Floor


Term:                    Unsecured                  Auto                Equipment
                         Up to 36 months            Up to 72 months     4 to 6 years


Payments:                Fixed; amortized using the term and rate of the loan.


Collateral:              UCC filing
                         Title to vehicle
                         Blanket lien on assets
                         Specific lien on




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                                                                            ATLFA TLM 300.1
                                                                            Page 1
                                                                            01/16/08


Section 300.1              TELEWORK APPLICATION PROCESS

                                Guaranteed Loans - Consumer

Applicants will receive application packets from the ATLFA or obtain them off the ATLFA
Internet site. Application packets will include an ATLFA application form, the loan application of
the bank, an instruction sheet and any other pertinent materials. Application packets will
include all forms and instructions necessary to apply.

The ATLFA generally asks for proof of disability for telework loans. The Board reserves the
right to ask for attachments to provide evidence of a disability or for justification to the ATLFA
for the device requested, which may include a letter from a physician or other appropriate
licensed professional, evaluation reports, or vendor quotes.

The ATLFA will contract with individuals having personal and professional experience in
assistive technology or credit counseling. The ATLFA shall, at their discretion, hire Consumer
Counselors who will assist applicants through the process of device selection, vendor selection,
identification of other available resources, loan application, purchase of the assistive technology
and financial training for both guaranteed and non-guaranteed loans.

Counselors will be selected based upon their skills and knowledge of assistive technology in the
respective areas. This will allow them to provide a counseling function to the individual
applicants and to provide related guidance and information.

The ATLFA may consider an application to be incomplete and require that an applicant provide
proof of additional income, proof of disability, or proof that the requested purchase of
technology is, in fact, assistive in nature.

Upon receipt of a complete loan application packet, the ATLFA will forward the bank loan
application to the participating bank. The bank will make its loan decision based on the terms
and conditions as agreed to with ATLFA. If approved, the bank will refer the applicant to a
branch of their choosing in order to close the loan. The bank will notify the ATLFA of its
decision.

Should the bank reject the application, it will send an adverse action letter to the applicant and
notify the ATLFA. The ATLFA will notify the applicant informing him / her that it will consider the
application for a guaranteed loan. The loan application will be evaluated for a guaranteed loan
at the next Loan Committee or Board meeting.

If the ATLFA approves the application, the Authority will refer the individual to a local financial
partner’s branch for closing. Should the ATLFA reject the applicant for a guaranteed loan, the
ATLFA will send an adverse action letter. The letter may offer an alternative to the applicant,
such as approval for a lesser amount or approval with a qualified co-signer.



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                                                                            ATLFA TLM 300.1
                                                                            Page 2
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Section 300.1              TELEWORK APPLICATION PROCESS

                                   Direct Loans - Consumer

Applicants will receive application packets from the ATLFA or obtain them off the Internet site.
Application packets will include an ATLFA application form, the loan application of the bank, an
instruction sheet and any other pertinent materials. Application packets will include all forms
and instructions necessary to apply.

The ATLFA will ask for proof of disability for Telework loans. It may also ask for attachments to
provide evidence of a disability or for justification to the ATLFA for the device requested such as
evaluation reports, doctor’s orders, or vendor quotes should the applicant wish to make a
purchase of something that is not generally considered to be assistive technology.

The ATLFA will contract with individuals having personal and professional experience in
assistive technology or credit counseling. The ATLFA shall, at their discretion, hire Consumer
Counselors who will assist applicants through the process of device selection, vendor selection,
identification of other available resources, loan application, purchase of the assistive technology
and financial training for both guaranteed and non-guaranteed loans.

Counselors will be selected based upon their skills and knowledge of assistive technology in the
respective areas. This will allow them to provide a counseling function to the individual
applicants and to provide related guidance and information.

Upon receipt of a complete loan application packet, the ATLFA will forward the loan application
to the Loan Committee for evaluation. The Loan Committee will make its loan decision based
on credit criteria established by the ATLFA and based upon information provided to or obtained
by the ATLFA. If the application is approved, the ATLFA will prepare and mail the loan closing
documents to the applicant. The ATLFA requires that loans closed by mail have all loan
documents notarized. Should the Loan Committee reject the application, the ATLFA will send
an adverse action letter to the applicant.

The ATLFA may consider an application to be incomplete and require that an applicant provide
proof of additional income, proof of disability, or proof that the requested purchase of
technology is, in fact, assistive in nature.




20
                                                                             ATLFA TLM 300.2
                                                                             Page 1
                                                                             01/16/08


Section 300.2                TELEWORK LOAN COMMITTEE

All loan requests for $10,000 or less received by the ATLFA, and any loan applications rejected
by the Bank, will be evaluated by ATLFA for consideration of a Direct Loan or a Guaranteed
Loan. ATLFA has delegated to the loan committee its authority to approve or deny loan
requests in accordance with credit criteria established by the ATLFA and based upon
information provided to or obtained by the ATLFA. All approved loan decisions made by the
Loan Committee will be considered final and will be ratified by the Board at its next regular
meeting. The structure of the Consumer Loan Committee is as follows:

    The Loan Committee will meet in person monthly, at a minimum, to evaluate loan requests.

    The Loan Committee will consist of five (5) members with a quorum of any three (3)
     members in person required at each meeting. Committee representation exceeding the
     quorum of three may attend the meeting via teleconference.

    The Executive Director of the ATLFA will chair the Loan Committee and will be one of the
     three voting members.

    ATLFA Board members are required to complete a lending training program to be a member
     of the Committee and will serve on the Committee for a term of one year.

    The ATLFA will:
            Prepare the loan summary sheet for each pending application.
            The Executive Director or designee will present the loan (using only the Loan
             Summary Data Credit Sheet) to the committee at the meeting.

    Loan Committee members will evaluate the summary data; discuss the loan as needed and
     then vote on approval, denial or additional information needed.
            Approvals or denials made outside of ATLFA credit policy require compensating
               factors to be identified and documented.

    All appealed loans will be referred to the ATLFA Board for review and final decision.

    All loan data and corresponding summary sheets are given to the Authority for completion of
     the Board Ratification summary sheet prior to the next Board meeting.




21
                                                                             ATLFA TLM 300.3
                                                                             Page 1
                                                                             01/16/08


SECTION 300.3                      NON-GUARANTEED LOANS - CONSUMER

                                   Telework Underwriting Guidelines

Product Summary
Applicants meeting the relaxed lending criteria for installment and equity loans offered through a
financial partner will not be guaranteed by the ATLFA. These loans will have an interest rate
buy down provision, which will be paid to the financial partner by the ATLFA.

Type of Loan         Secured                     Unsecured                   Home Equity
                     Installment                 Installment

Purpose              New Vehicles                Equipment                   Home Improvement
                     Used Vehicles               Home Improvement            Other

Maximum Term         New Vehicles                $5,000 or less
                     Up to 72 months*            Up to 48 months             Standard


                     Used Vehicles               Over $5,000
                     Up to 60 months             Up to 60 months

Loan to Value                                    Up to 100% LTV

Minimum Loan         $4,000

Debt to Income       Debt to income ratio limits will be increased on all products.

Credit
Underwriting         Normal underwriting guidelines apply, other than as listed above.

Pricing
Enhancements         Fixed-rate, not to exceed WSJ prime as of date loan is closed.


        For 61-72 month terms, the minimum amount financed must be $25,000 or more.




22
                                                                                ATLFA TLM 300.4
                                                                                Page 1
                                                                                01/16/08


SECTION 300.4                 GUARANTEED & DIRECT LOANS - CONSUMER

                                     Telework Underwriting Guidelines

Product Summary
Applicants that do not meet the modified lending criteria established for non-guaranteed loans
will be evaluated by the ATLFA for a guaranteed loan. The approved applications will be
booked and serviced on the financial partner’s system, but will be evaluated and governed by
ATLFA criteria and procedures.

Loan applications for $10,000 or less will be evaluated by ATLFA for a direct loan. These loans
will be booked and serviced by ATLFA in accordance with the established criteria and
procedures. Loans over $10,000 may be made directly by ATLFA, or guaranteed and booked
through its financial partner.

Credit Criteria Guidelines:

     Beacon Score: A Beacon Score of 600 or greater is acceptable. A Beacon Score of 560
     to 600 is acceptable if the credit problems were disability related and the applicant(s) has
     since demonstrated the ability to meet his credit obligations.
      If the application is a joint request, the higher bureau score will be used.
     Credit history: Credit history guidelines are as follows:

      Derogatory credit history (R3/I3 and greater) is generally unacceptable unless it is related
         to the individual’s disability.
        Bankruptcy and public records (unpaid collections and judgments) within the last 5 years
         are unacceptable unless it is related to the individual’s disability. In these situations, the
         applicant’s credit file should reflect good credit within the last year indicating they have
         the ability/willingness to meet their credit obligations.
        Additional documentation may be requested to document that the applicant(s) has paid
         outstanding balances on delinquent loans, unpaid collections/judgments or defaulted
         loans.
        Additional credit history documentation may be requested.
        Loans will not be made to applicants that have previously defaulted on a loan to the
         ATLFA.

     Debt to Income Ratio:

     Direct and Guaranteed Loans
      A 50% debt to income ratio is generally acceptable if the borrower can adequately
        document sufficient cash flow or assets to repay the loan. Projected income may be
        used to determine debt to income.

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                                                                            ATLFA TLM 300.4
                                                                            Page 2
                                                                            01/16/08



      The Board may approve loans to individuals who have additional and verifiable projected
       income because of an ATLFA Telework loan.
      Individuals having approval for special funding (such as a Plan to Achieve Self-Support
       (PASS) through SSA, or a MAP-122 Adjustment through DMAS) will be considered
       without regard to their debt to income ratio.

     Interest Only Loans
      Persons with disabilities who are unemployed or working part-time may be eligible for an
         interest only loan for a period of up to ninety (90) days for any Telework loan made
         directly by the ATLFA, or for an ATLFA guaranteed loan made through a financial
         partner.
      Approved interest-only loans will result in the individual paying the interest on the loans
         for the first three months to the ATLFA. Interest will be calculated by the ATLFA on an
         amortization schedule.
      Projected income will be used to determine the debt to income ratio for all interest-only
         loans (see Section 300.6).

     Financial Stability:
      Applicants should have sufficient and reliable or verified projected income to meet their
        credit obligations (including the new loan payment).




24
                                                                            ATLFA TLM 300.5
                                                                            Page 1
                                                                            01/16/08


SECTION 300.5                     TREATMENT OF DEBT

Each request for credit will be supported by a current credit bureau report to assist the Loan
Committee and the Board in assessing both the willingness and ability to repay. When
calculating the debt to income ratio, all current liabilities with regular monthly payments (as
indicated by the credit bureau report and the credit application/financial statement) will be
considered as follows:

R - Revolving Accounts (not including Equity Lines of Credit)
      On accounts with outstanding balances, payments will be calculated using 3% of the
      balance. (This calculation should be used even when a payment amount is shown in the
      “term” column due to the inconsistent information, which may be reported as “payments”
      by revolving creditors.)

      If the applicant indicates a balance on the application/financial statement that is different
      from the balance reported on the credit bureau report, the payment will be calculated at
      3% of the balance on the credit report.

R- Equity Revolving Lines of Credit
      On revolving accounts that are secured with home equity, payments will be calculated
      using 1.5% of the outstanding balance.

O – Open Accounts (American Express, Diners Club)
      Do not include these types of accounts in the debt to income ratio regardless of the
      balance. These accounts are due and payable within 30 days and do not have a
      minimum monthly payment. Open accounts may also include a debt that is not required
      to be repaid at the present time, such as a student loan that is deferred.

I – Installment Loans
       The monthly payment is usually reported under the “term” column on the credit bureau
       report, and should verify back to the application/financial statement.
      If the installment debt has 4 months or less remaining payments, the payment will not be
      included in the D/I ratio.




25
                                                                            ATLFA TLM 300.6
                                                                            Page 1
                                                                            01/16/08


SECTION 300.6                      TREATMENT OF INCOME

An individual’s or business owner(s) income includes all wages, salary, commissions, interest,
pensions and other sources of financial support, paid or in kind including Supplemental Security
Income (SSI), Social Security Disability Income (SSDI) and retirement benefits. Adjusted Gross
Income (AGI) includes non-taxable income made equivalent to taxable income by increasing
the non-taxable income by 25%.


Hourly Income Rates
Hourly income provided by an applicant should be converted to a monthly rate based upon how
many h ours the applicant actually works.


Income Ranges
If an applicant provides a range for their income, the Board will seek further clarification for a
more exact figure. If no exact figure can be obtained, an average of the range will be used for
the income. Example:

      The application states an annual base salary of $10,000 with $15,000 to $ 20,000 in
      commissions. The Board would average the commissions ($17,500) and add to the
      base salary for an annual salary of $27,500.


Rental Income
When an applicant reports the source of income to be from rental property, the income should
be adjusted and any debt service on the property (if separate from the primary residence)
should be netted out using the following method:

             Gross monthly rent – Monthly mortgage payment = net amount

The net amount should either be added to debt or to income. Neither the gross rent nor the
mortgage payment should be used in the d/I calculation.

Business Income
Business income is established using the most recent two (2) year’s business financial
statements and is defined as: net profit or loss + non-cash expenses (interest and
depreciation).

Self Employed
The income from self-employed individuals must be determined by evaluating tax returns and
schedules. Generally self employed income can be calculated by taking the net income figure
from the various schedules and adding back any non-cash expenses (i.e. depreciation) but
other issues such as the likelihood the income will continue should be considered.


26
                                                                          ATLFA TLM 300.6
                                                                          Page 2
                                                                          01/16/08


Non Taxable Income
The following types of income should be grossed up to adjust for the non-taxable status prior to
calculating the debt to income ratio.

      Social Security
      Disability
      Pensions/Retirements
      Public Assistance (excluding Unemployment)
      Tax-Free Interest Income
      Child Support (Excluding Alimony)

If the income is one of the non-taxable categories above, calculate the grossed up amount
using the following calculation, rounded to the nearest dollar:

      Income amount x 1.25 = grossed up amount (rounded to nearest dollar)


Investment Income
Investment income should be determined by averaging the two most recent year’s income, if
available. Interest and dividend income may be considered as ongoing income; however,
capital gains should be treated as a one-time income opportunity.


Projected Income
    A written job offer to the applicant from an employer is necessary to be considered for an
      interest only loan. The letter must be dated, signed by an authorized agent of the
      business, have an offer of employment with start date and anticipated wages/salary.
    Interest only loans may be made to individuals who establishing or expanding a business
      from their home, or self-employed enterprise (SEE). The individual must have a
      business plan approved by the Department of Rehabilitative Services’ SEE program
      consultant, a micro-enterprise loan program approved by the ATLFA, or by a consultant
      paid by the ATLFA. Business plan approval typically involves demonstrating the
      competence to operate the proposed business, taking and passing any required
      business courses, and the demonstration that the business will begin self-sufficiency
      within ninety days.




27
                                                                           ATLFA TLM 300.7
                                                                           Page 1
                                                                           01/16/08


SECTION 300.7                     Other Procedures

Direct Loans and ATLFA Guaranteed Loans are governed by the following procedures:


Loans for Tangible and Intangible
The ATLFA will obtain the highest and most available collateral for all loans. This may include
Uniform Commercial Code (UCC) filing for tangible and intangible. Home modification loans
and loans for vans and automobiles will be collateralized through a deed of trust or the title, as
appropriate. Applicants and advocates should note that ATLFA intends to maintain the integrity
of the loan process, recognizes its fiduciary responsibility to the Commonwealth, and expects
repayment for all of its loans.

For any guaranteed loan for personal property, the ATLFA will require written verification of
price and vendor before distribution of funds.


Joint Payment Check
Guaranteed Loans in excess of $5,000 will require the financial institution to issue the check
jointly to the borrower and the vendor. The Loan Committee may require the ATLFA to issue
the check jointly on Direct Loans.


Extension of Credit
Guaranteed loans must be closed within ninety (90) calendar days of the date of approval.
Applicants who have not closed their loan within the ninety-day period may be required to re-
apply to the ATLFA for approval.




28
                                                                              ATLFA TLM 301.1
                                                                              Page 1
                                                                              01/16/08



SECTION 301.1                      FORMS OF BUSINESS


Sole Proprietorship
A sole proprietorship is an individual operating as a business. Business assets and liabilities
are accounted for as personal assets and liabilities. Thus, the sole proprietor is personally
liable for all business debts.

Partnership
A general partnership is a business operated by two or more general partners. Partnership
assets, liabilities and ownership are accounted for separately and distinctly from the personal
assets and liabilities of individuals. Individuals are responsible for the debts of the partnership;
thus the personal assets of partners are exposed to liability.

A limited partnership consists of one or more general partners and one or more limited partners.
The purpose of a limited partnership is to allow one or more individuals to provide capital
without having to assume liability for the partnership debts. Limited partners are only liable for
debts of the partnership if they guarantee the debts. They can only lose the amount of their
investment in the partnership. General partners control the activities of the business and have
full liability.

Corporation
A corporation is an entity created by law. Shareholders own the company, elect directors and
vote on major corporate decisions. A board of directors manages the corporation and elects
officers to operate the company on a daily basis.

A corporation exists independently from the people who own it its shareholders are liable only to
the extent of their investment in the corporation. The corporation is responsible for its own
debts, thus shielding its owners from corporate debts and other obligations as long as the
business is conducted in “good faith.” Taxation issues differ between S Corps and C Corps.

Limited Liability Company
The Limited Liability Company (LLC) originated in 1977 in Wyoming, but was not recognized by
the IRS until 1988. It can have an unlimited number of shareholders (usually called members)
and classes of stock. The owners’ liability is limited to their investment in the company. The
LLC is treated like a partnership for tax purposes as long as it does not have more that two of
the four major corporate characteristics (continuous life, tradable interests, limited liability or
centralized management). Thus, income is taxed and losses are passed through to the owners.




29
                                                                           ATLFA TLM 301.2
                                                                           Page 1
                                                                           01/16/08


SECTION 301.2                     BUSINESS LOANS

Application Process

Businesses will receive application packets from the ATLFA; obtain them off ATLFA Internet
site or from the financial partner’s branch or business banking officer. Application packets will
include an ATLFA application form, the loan application of the bank, an instruction sheet and
any other pertinent materials. Application packets will include all forms and instructions
necessary to apply.

Upon receipt of a complete loan application packet, the ATLFA will forward the bank loan
application to the participating bank. The bank will make its loan decision based on the terms
and conditions as agreed to with the ATLFA. If approved, the bank will refer the applicant to a
branch of their choosing in order to close the loan. The bank will notify the ATLFA of its
decision.

Should the Bank reject the application, the Bank will send an adverse action letter to the
applicant and notify the ATLFA. The ATLFA may choose to review the loans that were not
approved by the Bank for a guaranteed loan. If the ATLFA makes that decision, it will notify the
business owner(s) informing him / her that it will consider the application for a guaranteed loan.
The loan application will be evaluated for a guaranteed loan at the next Loan Committee or
Board meeting.

If the ATLFA approves the application, the ATLFA will refer the business to their chosen local
financial partner’s branch or its financial partner’s business banker for closing. Should the
ATLFA reject the applicant for a guaranteed loan, the ATLFA will send an adverse action letter.
The letter may offer an alternative to the business, such as approval for a lesser amount.

The ATLFA may consider an application to be incomplete and require additional financial
information as specified on the financial partners checklist.




30
                                                                          ATLFA TLM 301.3
                                                                          Page 1
                                                                          01/16/08


SECTION 301.3              TYPES OF FINANCIAL INFORMATION


Financial Statements
       Balance Sheet – lists assets, liabilities and net worth of business
       Income Statement (a.k.a. Profit and Loss) P&L) Statement) – lists sales/revenues,
          costs/expenses and net profit
       Footnotes – required on audited or reviewed statements; may be seen with compiled
          statements

Financial statements may be produced by:
       CPA’s – audited, reviewed or compiled statements
       Tax accountants – also prepare the business’ annual tax returns
       Company itself – company prepared
      NOTE: Compiled or company prepared statements must bear the signature (with date)
      and title of the officer who attests to the accuracy and completeness of the statements.

Tax Returns (all of which must be signed)
      Form 1040 – Individual Tax Return
      Form 1120 – U.S. Corporation Tax Return (C Corporation only)
      Form 1120S – U.S. Income Tax Return for S Corporation
      Form 1065 – U.S. Partnership Return of Income
      Schedule K-1 (1065) – Partnership form to be filed with form 1040
      Schedule K-1 (1120S) – S Corporation form to be filed with form 1040
      Schedule C – Sole Proprietorship schedule to be filed with form 1040

S Corporations and Partnership do not pay taxes directly but must funnel income, credits, or
deductions to be taxed to the individual stockholders or partners. Tax documents showing
these items are called K-1s; 1120S for S Corporations and 1065 for Partnerships. Schedule C
for Sole Proprietorships is filed with 1040 Individual Tax Return.




31
                                                                          ATLFA TLM 301.4
                                                                          Page 1
                                                                          01/16/08


SECTION 301.4                    NON-GUARANTEED BUSINESS LOANS

                                 Business Underwriting Guidelines

Product Summary
Businesses and Non Profit organizations meeting the lending criteria offered through Sun Trust
in partnership with the ATLFA will not be guaranteed by the ATLFA. These loans will have an
interest rate buy down provision, which will be paid to a financial partner by the ATLFA.

Type of Loan              Secured                    Unsecured

Purpose                   Modified Vehicles          Modified Vehicles
                          AT Equipment               AT Equipment
                          ADA Modifications          ADA Modifications

Maximum Term              Auto                       Up to 36 months
                          Up to 72 months

                          Equipment
                          Up to 72 months

Credit Underwriting       Normal underwriting guidelines apply, other than as listed above

Gross Sales:              Less than $5M

Years in Business         Minimum of 3 years

Personal Guarantees       Principals/owners with > 20% ownership. At least 50% of the
                          ownership interest must guarantee the loan.

Credit History            Principals/guarantors must have satisfactory credit history and be
                          free of previous personal bankruptcy, judgments, liens, charge-offs
                          or a history of delinquency greater than 30 days.

Debt Service              Debt service coverage based upon two-year financial information.
                          Global debt service must be no less than 1.35 times, including the
                          proposed debt.

Pricing Enhancements      Variable rate; set at Prime as of date loan is closed.
                          Fixed rate; .75 – 1.5% lower than internally posted rate.




32
                                                                     ATLFA TLM 400.1
                                                                     Page 1
                                                                     01/16/08


SECTION 400.1             CREDIT and COLLATERAL DOCUMENTATION

                                       Consumer Loans

The following documents are used for Consumer Loans offered with this program. The ATLFA
has a copy of each document on file in the ATLFA office.

Application Documents: All Loans
ATLFA Personal Credit Application
ATLFA Information Sheet
Financial Partner’s Loan Application
Personal Financial Statement
Credit Report

Loan Closing Documents:            Unsecured Loans
Promissory Note and Disclosure
Financial Partner’s Privacy Policy
Disbursement Request and Authorization

Loan Closing Documents:            Auto Loans
Disclosure Statement
Promissory Note
Financial Partner’s Privacy Policy
Disbursement Request and Authorization
Consumer Security Agreement
Power of Attorney
Agreement to Provide Insurance
Notice of Insurance Requirements

Loan Closing Documents:            Equity Loans
Disclosure Statement
Promissory Note
Financial Partner’s Privacy Policy
Disbursement Request and Authorization
Deed of Trust
Settlement Statement
Agreement to Provide Insurance
Notice of Insurance Requirements
Authorization for Payoff
Notice of Right to Cancel




33
                                               ATLFA TLM 400.1
                                               Page 2
                                               01/16/08


Loan Closing Documents:         Direct Loans
Loan Data Summary
Loan Amortization Schedule
Disclosure Statement
Promissory Note
Security Agreement


Other Documents:
Loan Committee Credit Summary
Statement of Credit Denial




34
                                                                     ATLFA TLM 400.2
                                                                     Page 1
                                                                     01/16/08


SECTION 400.2              CREDIT and COLLATERAL DOCUMENTATION

                                      Business Loans

The following documents are used for Business Loans offered with this program. The ATLFA
has a copy of each document on file in the ATLFA office.


Application Documents:
ATLFA Application
Financial Partner’s Business Banking Application
Application Checklist
Corporate Borrowing Resolution
Business Financial Statement
Principal Owner(s) Personal Financial Statement
Principal Owner(s) Personal Tax Returns
Unconditional Commercial Guaranty

Loan Closing Documents:
Commercial Note
Financial Partner’s Privacy Policy
Security Agreement
UCC Financing Statement

Other Documents: (if applicable)
Statement of Credit Denial




35
                                                                            ATLFA TLM 500.1
                                                                            Page 1
                                                                            01/16/08


SECTION 500.1                      COLLECTION POLICIES
                                Consumer Guaranteed and Direct Loans

Extensions – Direct Loans
(Extension definition: the process of extending the term of the loan for a specified number of
months which allows customers the ability to defer the normal monthly payment(s). Interest
continues to accrue on the loan and the loan payments missed are neither considered past due
nor reported delinquent. The extension period is viewed as a grace period with no payments
due.)
Extensions are normally granted for unusual circumstances, such as illness/medical, change of
residence, or loss of work. Customers taking advantage of an extension should be able to
maintain their payments after the extension period. Extensions are discouraged for customers
who are generally overextended and unable to make payments, or who will be past due again
when the extension period is over. In all cases, evaluation of the customer’s ability to pay and
payment history should be considered.


Normal Parameters for Extensions:
        No extensions during the first 3 months of the loan.
        No more than 1 extension for each 6 months the loan has been on the books.
        A loan should not be extended more than 3 months during a 6-month period.
Extensions Requiring Executive Director Approval:
        Any extension greater than 4 months.
        More than 6 extensions on a 60-month contract; more that 10 extensions on a 120
         month contract.
        Any exception to Normal Extension Parameters


All extensions approved by the Executive Director will be reported to the Board at the next
regularly scheduled Board meeting.




36
                                                                           ATLFA TLM 500.1
                                                                           Page 2
                                                                           01/16/08

Rescue Payments and Purchased Notes – Guaranteed Loans
(Rescue payment definition: the process of the ATLFA making the delinquent payments for a
guaranteed loan with the financial partner in order to bring the account current). The payments
made on behalf of the customer are considered as an additional loan made to the customer by
the ATLFA. The term of the loan is not extended. The payments made by the ATLFA create a
‘new loan’ that is billed separately once the original loan balance has been satisfied.
Rescue payments are normally granted for unusual circumstances, such as illness/medical,
change of residence, or loss of work. Customers receiving rescue payments from the ATLFA
should be able to maintain their payments with the ATLFA’s financial partner after ATLFA
payment is made. Rescue payments should not be offered for customers who are generally
overextended and unable to make payments, or who will be past due again the following month.
In all cases, evaluation of the customer’s ability to pay and payment history should be
considered.


Parameters for Rescue Payments:
        A loan should be > 60 days delinquent but not greater than 90 days delinquent
        No more than 2 rescue payments during a 6 month period.
        No more than 2 rescue payments may be made during the life of the loan.
        Exceptions to these parameters may be made by the Executive Director, but are required
         to be reported to the Board at the next regularly scheduled Board meeting.
Parameters for Purchased Notes:
        More that 4 delinquent payments in a 6 month period.
        Two rescue payments within a 6-month period have been made by the ATLFA.
        Exceptions to these parameters may be made by the Executive Director, but are required
         to be reported to the Board at the next regularly scheduled Board meeting.




37
                                                                           ATLFA TLM 500.1
                                                                           Page 3
                                                                           01/16/08

Charge Offs – Guaranteed and Direct Loans
        All past due accounts exceeding 180 (+) days delinquent will be charged off within thirty
         (30) days of the account exceeding 180 days past due.
         UNLESS:
         a) The customer is making payments in accordance with an agreement reached with the
            collections agency and the ATLFA Executive Director.
         b) The customer has accident and health (A&H) claims pending or A&H payments
            forthcoming.
         c) The collateral securing the loan has been repossessed and liquidation is scheduled
            within ninety (90) days of the account becoming 180 days delinquent.
         d) The first 180 days an account is in dispute.
         e) The Executive Director approves an exception to these parameters. All exceptions
            approved by the Executive Director are required to be reported to the Board at the
            next regularly scheduled Board meeting.


        Bankrupt accounts will be charged-off within ninety (90) days of receipt of the Bankruptcy
         Notice.
         UNLESS:
         a) The customer continues to pay and maintains the account in good standing.
            (Chapter 7)
         b) The account has pending reaffirmation or has reaffirmed the debt and the customer is
            continuing to pay with regular payments.
         c) The account is being paid outside the plan. (Chapter 13).
         d) The Executive Director approves an exception to these parameters. All exceptions
            approved by the Executive Director are required to be reported to the Board at the
            next regularly scheduled Board meeting.




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        Deceased accounts will be charged off within ninety (90) days of the receipt of death
         certificate.
         UNLESS:
         a) The executor or administrator or individual legally responsible for estate has indicated
            life insurance benefits will be forthcoming prior to account reaching 180 days past
            due.
         b) The payment arrangements have been made by maker, co maker, or endorser.
         c) Payment arrangements are made with executor/ administrator, individual legally
            responsible for estate or an individual/guarantor accepting responsibility for the
            obligation to bring account current within 120 days.
         d) The Executive Director approves an exception to these parameters. All exceptions
            approved by the Executive Director are required to be reported to the Board at the
            next regularly scheduled Board meeting.
     Rescheduled Loans:
        No loans may be rescheduled for more than 12 additional months.
        The APR should remain the same as the original loan.
        Terms of the rescheduled loan must be re-disclosed to the customer.
        The maturity date and monthly payment must be changed on the billing system.
        The loan may be rescheduled 1 time during the life of the loan.
Any rescheduled loan outside of the above parameters must be approved by the Executive
Director and reported to the Board at the next regularly scheduled Board meeting.


Debt Forgiveness
The Executive Director may determine that a loan may be forgiven for the following reasons:
           Medical/physical change
           Compounding disability
           Change in employment status
           Unexpected Family expenses
All loans approved for Debt Forgiveness must be reported to the Board at the next regularly
scheduled Board meeting.

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                                                                            ATLFA TLM 500.1
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                                                                            01/16/08

Judgments
The ATLFA will begin the process to obtain judgments on accounts that reach 120 days past
due unless the reason for non- payment is one of the accepted reasons as approved by the
Board:
         Medical/physical change
         Compounding disability
         Change in employment status
         Unexpected Family expenses
The ATLFA will not use the judgment to garnish wages, bank accounts or levy non-exempt
personal property. The judgment will be obtained for inclusion in the customer’s credit report
since the ATLFA does not have the minimum number of accounts to report credit history with
the credit reporting agencies.


Repossessions
The ATLFA will evaluate delinquent auto loans for potential Repossession once the account
exceeds 120 days past due, or earlier, if voluntary or payment viability deemed unlikely and the
potential realized value of the sale exceeds the cost of repossession.
         Prior to repossession activity, the ATLFA will review the account to:
                 o   ensure there has been diligent collection activity in accordance with the
                     Collection procedure manual,
                 o   evaluate the potential value of the repossession and liquidation sale
                     compared to the expense incurred to the ATLFA.
                 o   determine if the reasons for non-payment warrant an exception for loan
                     modifications or debt forgiveness,
                 o   determine if the repossession process should proceed, and
                 o   ensure a courtesy notification is communicated to the Secretary of Health
                     and Human Resources Office in advance of each repossession, if
                     applicable.



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