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c) <br /> <br />The CDC will forward the completed and <br />completion certificate to bank. <br /> <br />signed <br /> <br />Partial Payments <br /> <br />The bank will not make partial payments. In the vent <br />partial payments are required, the bank will clsoe the <br />full amount of the loan and make a lump sum payment to the <br />CDC who will then disburse all payments. The borrower <br />will be responsible for making monthly payments after the <br />loan is closed. The CDC will obtain an owner's <br />satisfaction statement and a completion certificate before <br />disbursing the final payment and will forward all signed <br />documents to the bank. <br /> <br />Collection of Funds <br /> <br />The bank shall collect all monthly payments due on loans <br />originated under this loan program. There shall be no <br />additional charge to the borrower or the CDC for servicing of <br />loans except charges to the borrower resulting from late <br />payments, defaults and/or foreclosures, or to discharge the <br />borrower's obligations under the loan documents should <br />borrower fail to do so. No prepayment penalties will be <br />allowed. <br /> <br />G. Repayment of Compensating Balance <br /> <br />At the conclusion of the time period that the Compensating <br />Balance is to be held, the Bank shall repay the CDC the <br />entire amount of the Compensating Balance. These funds <br />will be deposited into the interest bearing account and <br />will be used for additional housing rehabilitation loans <br />in conformance with the federal laws and regulations <br />governing the CDBG Program. <br /> <br />IV. <br /> <br />DELINQUENCY AND FORECLOSURE <br /> <br />The bank shall advise the CDC of loans in default that may result <br />in Foreclosure or proposed foreclosure proceedings. The CDC shall <br />have the option to cure any default of the borrower. A report by <br />the bank to the CDC of loan delinquencies shall be made at least <br />once a month unless the CDC elects to waive such reporting. <br /> <br />The Bank will use the same collection procedures for loans made <br />under this agreement as all other unsubsidized loans. <br /> <br />A copy of the current collection procedure is attached and made a <br />part of this agreement. Modifications or changes to this <br />collection policy may be made by the bank without the approval of <br />the CDC, by notifying the CDC in writing of any changes. <br /> <br /> <br />