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2. Loan Monitoring Procedures <br />Trackingfile <br />When a loan is closed, it is added to the tracking file so that information required in <br />the loan agreement is assured of collection on a timely basis. The following are items <br />typically included for each loan on the tracking file: <br />• Quarterly financial statements (generally, monthly financial statements are only <br />required for start-up businesses) <br />• Annual financial statements, prepared by an independent certified public <br />accountant <br />• Annual insurance renewals, with IRF as loss payee and/or mortgagee <br />• UCC re -filings — 5 years <br />• Payment of real and personal property taxes <br />Other special loan conditions may be added to the tracking file for specific loans (e.g., <br />hazard insurance, list of milestones for high tech loans, etc.) <br />Credit1performance review and site visit <br />For secured loans an annual credit review and site visit for each loan is prepared by <br />the loan servicing officer for review by the IR-F Board and typically covers the <br />following: <br />• Business financial information and credit analysis <br />• Compliance with loan terms and conditions <br />• Comparison of actual versus projected job creation and retention <br />• Report on the annual site visit, including discussion with borrower's <br />management and visual inspection of the IRF's collateral and its condition <br />• For high tech and start-up loans and loans where collateral coverage is below <br />one to one more frequent performance reviews will normally be necessary. <br />These may be as often as monthly and include budget discussions as required <br />based on financial reporting, <br />3. Loan Files and Loan Closing Documentation <br />3. I.Filing system and contents <br />Each loan normally has four (4) separate files covering the following: <br />Application file #1 <br />Application <br />Commitment letter <br />Correspondence related to the application period <br />Board Meeting Minutes reflecting approval of the loan <br />34 <br />