I. OBJECTIVE
To assist in the marketing of new electric loads that will improve the Cooperative's load factor and to encourage the wise and safe use of electric energy by the member-consumers, the Cooperative will offer 5%-interest loans to help members finance the purchase and installation of electric equipment, weatherization and electrical service entrance upgrades for their home or business.
II. CONTENT
A. Marketing Loans
1. 5%-interest marketing loans shall be available to qualified member-consumers for the installation of new electric equipment, for upgrading the existing electric service entrance in conjunction with the installation of new equipment and for eligible large commercial and industrial installations based on the following terms and conditions.
a. The member-consumer shall sign any applicable agreements and waivers before any rebates and 5%-interest loans are made available.
b. The amount of rebates plus 5%-interest loans shall not exceed the member-consumer's actual out-of-pocket cost.
c. The member-consumer shall be required to use automatic payment processing for all related electric billing and loan repayments.
2. 5%-interest marketing loans shall be based on the following criteria:
a. The applicant shall complete a loan application. All loan applications shall be reviewed with the Board of Directors prior to approval or denial by management.
b. The specific terms of each loan shall be established by the Cooperative; however, repayment terms may not exceed eighty-four (84) equal monthly installments.
c. Loan requests for residential installations shall be limited to a maximum amount of $10,000.00 and eighty-four (84) equal monthly installments.
d. Loan requests for grain drying installations shall be limited to a maximum amount of $5,000.00 and sixty (60) equal monthly installments.
e. Loan requests for large commercial and industrial installations in excess of $10,000.00 shall require the approval of the Cooperative's Board of Directors.
B. Weatherization Loans. The Cooperative shall make weatherization loans available to eligible consumers for improvements to structures receiving electric service from the Cooperative. 5%-interest weatherization loans shall be based on the following criteria:
1.A loan application shall be completed by the applicant and approved or denied by management.
2.Weatherization loans may be approved to finance material and labor costs for caulking, weather stripping, ceiling insulation, wall insulation, floor insulation, duct installation, pipe installation, water heater insulation, storm windows, thermal windows, storm or thermal doors, programmable thermostats and attic ventilation fans. If the consumer provides the labor, the weatherization loan will be limited to material costs only.
3.The specific terms of each loan shall be established by the Cooperative; however, repayment terms may not exceed sixty (60) equal monthly installments.
4.Loan requests for weatherization improvements shall be limited to a maximum amount of $3,000.00.
C. Service Entrance Upgrade Loans. The Cooperative shall make service entrance upgrade loans available to eligible consumers for upgrades to the service entrance in structures receiving electric service from the Cooperative. 5%-interest service entrance upgrade loans shall be based on the following criteria:
1.A loan application shall be completed by the applicant and approved or denied by management.
2.The specific terms of each loan shall be established by the Cooperative; however, repayment terms may not exceed sixty (60) equal monthly installments.
3.Loan requests for service entrance upgrades shall be limited to a maximum amount of $3,000.00.
D. The aggregate outstanding loan balance of an individual member-consumer shall be limited to a maximum amount of $13,000.00.
E. Upon approval of a loan application, all required loan documents shall be executed and recorded with the appropriate county’s Register of Deeds.
1.A loan-processing fee of $100.00 shall be collected when the loan documents are executed to help offset the filing fees.
2.If the Cooperative is required to make additional filings due to subordination or similar circumstances, an additional fee of $50.00 shall apply.
F. Employees who are not members of the Cooperative shall also be eligible for a 5%-interest loan to finance the costs of new electric equipment, weatherization or service entrance upgrades, subject to the terms and conditions noted above.
III. RESPONSIBILITY
The General Manager is responsible for administering this policy and for recommending to the Board any changes deemed desirable.
EFFECTIVE DATE: July 1, 2012
DATE ADOPTED: April 19, 2001
DATE REVISED: June 22, 2006
DATE REVISED: May 30, 2007
DATE REVISED: June 21, 2012
DATE REVIEWED: July 31, 2014
ATTESTED:
Chris Hofer, Secretary
