Section 591.12.3. Servicing responsibilities after loan funding.

The following is a listing of servicing responsibilities and procedures that the lender must comply with after the loan is funded in order to maintain the guaranty:

       12.3(1) Monitor monthly loan payments.

       12.3(2) Provide written notification to the UST fund administrator of all loans that are 60 days delinquent.

       12.3(3) If the loan is in default status, follow all procedures set out in rule 12.4(455G) of this loan policy.

       12.3(4) Establish and maintain a basic loan file on each loan.

       12.3(5) Establish procedures to ensure notification of UCC refiling dates, insurance expiration dates, financial statement due dates and similar events.

       12.3(6) Obtain and review income tax returns of the borrowers and guarantors annually.

       12.3(7) Obtain and review annual financial statements on all borrowers and guarantors. These statements must be available no later than 90 days after the borrower’s fiscal year end. Copies of these statements are to be sent to the UST fund administrator upon receipt from the borrower/guarantor. Unusual items or trends on the financial statements or tax returns shall be analyzed and a determination made if the items should have an adverse financial impact on the borrower. Documentation shall be placed in the loan file to support conclusions.

       12.3(8) Annual field visits shall be made to the borrower’s place of business. A record of the visit shall be maintained in the loan file. A record of telephone contacts with the borrower or visits by the borrower to the lender’s office shall be maintained in the loan file.