HomeMy WebLinkAbout1986-486
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RESOLUTION NO. 86 486
RESOLUTION OF THE CITY OF SAN BERNARDINO APPROVING CONTRACT
BETWEEN THE CITY OF SAN BERNARDINO AND THE SAN BERNARDINO
ECONOMIC DEVELOPMENT COUNCIL FOR ASSUMPTION BY CITY'S COMMUNITY
DEVELOPMENT DEPARTMENT OF ALL ECONOMIC DEVELOPMENT LOANS
OUTSTANDING WITH THE SAN BERNARDINO ECONOMIC DEVELOPMENT COUNCIL
AND BALANCE OF REVOLVING LOAN FUND.
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AS FOLLOWS:
7 SECTION 1. The Mayor of the City of San Bernardino is
8 hereby authorized and directed to execute, for and on behalf of
9 the City of San Bernardino, a contract between the City of San
10 Bernardino and San Bernardino Economic Development Council, a
11 California non-profit corporation, whereunder the City of San
12 Bernardino's Community Development Department assumes from the
13 San Bernardino Economic Development Council those outstanding
14 loans packaged by the San Bernardino Economic Development Council
15 under its revolving loan fund, and the remaining balance of its
16 revolving loan fund. A copy of the contract is annexed hereto as
17 Exhibit "A" and is incorporated herein by reference as though
18 fully set forth at length.
19 I HEREBY CERTIFY that the foregoing resolution was duly
20 adopted by the Mayor and Common Council of the City of San
21 Bernardino at an fldjollrnpn rpgnl",rmeeting thereof, held on the
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day of
, 1986, by the following vote, to
8th
np.~p.mhp.r
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AYES:
Council Members Estrada, Reilly, Quiel. Frazier.
Strickler
None
NAYS:
ABSENT:
Council Members Hernflnde7. Mflrkq
~//~~
/' CJ.ty C er
1 The foregoing hereby approved this 9'e:-~ day
2 of December , 1986.
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4 Approved as to form:
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6 & ,:;J. 0
/ (p~}f-1 __~R.-'
7 City Attorney
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28 12/1/86
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CONTRACT BETWEEN THE CITY OF SAN BERNARDINO ~ND
BERNAH.DINO ECONOMIC :)EVELOP'IENT C')UilCIL
.:,1/ ! ~
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'~VX I
THE SAij,
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THIS CONTRACT is ~ade and entared i~t~ this
day
of
, 19_, by a,1d bet'.;ee:'. THe: CITY ,)F SAN
5 BERNAR~I~O, ~ municipal corporation, hereinafter referred to as
6 "City", and THE SAN BERNARDINO ECONOMIC DEVELOPMENT COUNCIL, a
7 California non-profit corporation, hereinafter referred to as
8 "SBEDC".
9 The parties hereto do hereby agree:
10 1. BBEDC hereby agrees to assign and transfer to City, all
11 of those outstanding loans heretofore made by SBEDC under its
12 revolving loan fund, identified as follows:
13 Buttercup Bakery, Option House, Inc., Don's Drug Store,
14 Cajun's Seafood Market and Deli, Foothill Meridian Plaza,
15 Heritage House Parking Lot, La Esparanza Market, Julius Tortilla,
16 Community Financial Services, Progressive Mortgage Corporation,
17 and Operation Second Chance, Inc.
18 SBEDC will transfer with the pro~issory notes, any and all
19 security therefor, and all records pertaining to said loans, and
20 ~ill e~ecute any assignment documents re1uired or desired by
21 City. In addition, SBEDC will transfer to the City the balance
22 remaining in its revolving loan fund, in the approximate amount
23 of $2,224.
24 2. City shall accept assignment J.:ld transfer of all such
25 loans, and shall, through its Community Development Department,
26 administer a small business revolving loan fund. City shall
27 transfer into said small business revolving loan fund all
28 proceeds of those loans heretofore made by SBEDC which are
12/1/86
1 hereafter received by City. City shall deliver to SBEDC a
2 receipt for the documents provided by SBEDC.
3 3. City and SBEDC hereby 33ree that SBEDC will be relieved
4 of any further :)o!i3atlons t.:)naintain a revol?:':1:] loan funJ in
5 acco=dance with earlier contractual arrangements between City and
6 SBEDC, u?on delivery of the assignments proviJed for herein.
7 I~ WITNESS WHEREOF, the parties have executed this agreement
8 effective the day and year first above written.
9
10 ATTEST:
CITY OF SAN BERNARDINO
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By
Mayor
City Clerk
SAN BERNARDINO ECONOMIC
DEVELOPMENT COU~CIL
By
Approved as to form:
~._........, . ./7 (0
~/-::i("t1/,.G ~~_~U--"'~/
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City Attorney
12/1/86
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WESfERN ECONO~~f~j~~fJ' CORPORATION
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4000 BRQADWA Y
OAKLAND. CALIFORNIA 94611
(4151 662-235B
November 21, 1986
Mr. Kenneth Henderson
Director
Community Development Department
City Hall
300 North D Street
San Bernardino, CA 92418
Dear Mr. Henderson:
Enclosed you will find our report on the study of the files
(loan packages) which we reviewed at the San Bernardino
Economic Development Council (SBEDC).
The SBEDC office was very cooperative with us in providing
information and calling clients for financial statements.
In reviewing the packages we found that they contained loan
agreements, some supporting documents as to collateral and
other correspondence and supporting documents. Some of these
packages did not contain financial statements (balance sheets
and/or profit and loss statements), some of these packages
did not have evidence that the loan agreements had been
properly recorded or notarized. The packages that were
prepared under the administration of Mr. Sam Henley did
contain well executed documents and showed some organization.
It is important to point out that Mr. Henley is not an ex-
perienced loan officer and was not given any guidelines by
which to make these loans. In talking to Sam Henley he
pointed out that when he took over from the previous admini-
stration he reviewed all of the loan packages and put them
in at least some order, but that he was not given any guidelines
nor was he given any experienced professional staff, such as
a loan officer, to assist him in this function. It is my belief
that Sam Henley did very well under the circumstances and that,
had he had experienced professional assistance, the packages
would have been much better organized. Mr. Henley pointed out
that the Executive Committee of SBEDC made the decision as
to whether loans were approved or not.
~190
Mr. Kenneth Henderson
November 21, 1986
Page Two
Mr. Henderson, in looking at the packages we were able to
make summaries of each package and they are attached to this
report. There were eleven (11) packages: Butercup Bakery,
Pedro Ortiz; Cajun's Seaffod Market and Deli, John Haywood, Jr.;
Community Financial Services, Leticia Arciniega; La Esperanza
Market, George Aguilar; Option House; Julia's Enterprises,
Inc., Eddie Negrete; Foothill Meridian Plaza, Willie Clark;
Don's Drug Store, Don Goldstein; Progressive Mortgage, Harry
Jacks; Operation Second Chance and Heritage House Parking Lot.
Of these, Operation Second Chance (OSC) has filed bank-
ruptcy and it appears that whatever investment SBEDC has
in this package will result in a net loss.
The La Esperanza Market is technically in default in that they
have not made any payments in almost one year. It is our
recommendation that this business be carefully monitored.
All of the loan packages have at one time or another been
slow in payment, however, it must be pointed out that none
of the loans made followed normal lending criteria as used
by lending institutions. It appears that the loans were
made for reasons other than normal business reasons (such
as those used by banks or other financial institutions in
approving loans).
Mr. Henderson, one of the things I would have legal counsel
check would be the validity of the loan agreements and also
to have the liens against properties both real and personal
checked out as to their validity.
Mr. Henderson, I would strongly recommend that all of the
loan packages being transferred to your agency be reorgan-
ized so that the loan agreements, the collateral, the
financial statements (balance sheets and profit and loss
statements), supporting documents and business related
correspondence be separated and indixed so that if anyone
wishes to look at the file in the future, they will know
where to find this information.
Mr. Henderson, I also strongly recommend well defined policies,
procedures and guidelines be set up for the personnel who will
be in charge of this economic development function. Specifically,
the taking of loan applications, preparing the loan packages
and strict guidelines as to the qualifying requirements for
making a loan to any future clients.
Mr. Kenneth Henderson
November 21, 1986
Page Three
Some of the requirements that should have been established
and followed might include the following: An application
form similar to those used by major financial institutions
in making commercial loans; business plans which contain
information about market, product and service, competition,
sales, past, present and future, a background statement on
management and other key personnel in the business.
Mr. Henderson, I realize that your agency is not a commercial
lending agency, however, it is important for you to establish
some clear guidelines for your personnel to follow in carrying
out the responsibilities of this lending activity.
Mr. Henderson, I do not know what your agency's plans are
as to future involvement in this kind of commercial lending
activity, but it is my recommendation to your agency that
if you are going to continue and expand your efforts in
this area that you should do the following: First, hire as
experienced loan officer to interview all loan applicants
and make sure that the normal financial and economic standards
are followed in preparing a loan package and reviewing the
same prior to making any loan commitments to any future
clients.
Mr. Henderson, I have not had an opportunity to discuss many
of our findings with you in person because, as you know, we
started this study on the morning of November 19, 1986 and
we are submitting it to you today, November 21, 1986. We
only had three (3) days in which to prepare this report.
We have enjoyed cooperation from Mr. Sam Henley and his
staff, Jacque Takano and your staff Mr. Nestor Nazario and
Leslie Bond and your consultant, Mr. John Trout. All of
your people and Mr. Henley's office were very cooperative
and gracious and we appreciate this cooperation.
Mr. Henderson, the economic development program run by SBEDC
can be criticized; however, it must be pointed out that they
did not have clear lending guidelines nor the assistance of
professional lending personnel. The files were and are
still in a state of disorder and there is very little written
justification for making any of the loans in the files. It
will require that your staff spend several days in reorganizing
these files.
Mr. Kenneth Henderson
November 21, 1986
Page Four
Mr. Henderson, insofar as the assests and liabilities of
SBEDC being transferred to your agency, it is not too
clear as to what the real net worth is because some of the
collateral documents do not seem to be properly executed
and, therefore, may not be valid. There are also some losses
that have occured (see OSC file) and others that may become
delinquent in the future.
It is our opinion that if the economic development effort,
including the commercial loan activity, is property organized
and given good guidelines and professional staffing, that
it can be a very productive program for your agency. It will,
however, need adequate funding for the lending program and
qualified personnel to operate a good program.
~~UllY SUbmitte~,
PETE OLIVEREZ
Executive Director
PO:jt
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WESTERN ECONOI '. CORPORATION
4OlJO BROADWA Y
OAKLA~JD, CALIFORNIA 94611
!4151652.2368
ADDENDUM
Mr. Henderson, I would like to make these further observations and recommed that
you consider the following points which are, in my opion, very important to the
future operation of the City's Economic Development Program.
Personnel-At least one fu11time experienced loan officer should be hired for
the EDC's Program activities. A full-time experienced Steno/Secretary should
also be hire to provide clerical support exclusiv1y toward the EDP's efforts.
Funding-Adequate funding should be obtained for both the Small Business Revolv-
ing loan Program and your administration of the said program. As you are aware
some of the potential sources are: C.D.B.G., U.D.A.G., I.D.B., S.B.A., BANKS,
Private Investors and other governmental agencies.
Mr. Henderson, I also believe that it is very important that your program have
an Advisory Board that would act as your loan review committee as well as a
general technical and professional advisory board. In addition, I suggest that
you select these individuals from major Financial Institutions, Accounting Firms
and Title Companies.
Mr. Henderson, I know that there are many more areas that I should have covered
and evaluated in this report, but due to the time constraints it was not possible
to do so. Should additional assistance be required please do not hesitate to
contact me.
~Q .Jc.
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SUMMARY
I. NAME
A. BUSINESS:
Buttercup Bakerv
B. BORROWER:
Pedro R. Orttz
C. MANAGER:
SSl'Ie
II. LOCATION
A. ADDRESS:
139 North Mt. Vernon Avenue
San Bernardino, CA 92411
B. PHONE:
(14) 381-3178
III. LOAN DATA
A. AMOUNT: $ 70,000.00
B. INTEREST: 10.5 t per annum
C . DATE OF LOAN: Approved June 1, .1984
D. MONTHLY PAYMENT:
$920.83
E. TERMS:
7 years - (Limited Deferred Loan) see Exhibit "A"
F. STATUS:
Current through NoveMber 1986
.
G. COLLATERAL: 1) Promissory Note Secured by Equipment - see Exhibit "A"
2) UCC-l - see Exhibit "B"
3) Promissory Note from Silvera G. Hernandez and
IV. FINANCIAL POSITION Maria Hernandez, in the face amount of (S35.000.00) wid
a maturity date of September 1, 1989, owne~ bv
Pedro R. Ortiz.
A. BALANCE SHEET: YES
NO
)I.
B.
OPERATING STATEMENT:
YES*-
NO
v. NOTES
1) Pr~issory Note is notarized - Au~ust 2. 1984
2) A one (1) year l'Ioratorium was granted for the period starting June It 1984.
and ending June I, 1985, with interest accruein~ as of June 1, 19R4 starting
date - see Exhibit "A".
3) See Deed of trust on land in Baldwin Park - this Deed was not listed on
Promissory Note.
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CONSULTANT ,
\ \ - '2.\ -~(,
DATE
SUMMARY
I. NAME
A. BUSINESS:
Option House, Incorporated
B. BORROWER:
Corporation (Private Non-profit)
C. MANAGER:
Lon A. Indrieri, Jr. (President - Board of Oirectors)
Penny Rebhan (contact person)
II. LOCATION
A. ADDRESS:
838 North Lugo
San Bernardino, CA 92402
B. PHONE:
(714) 825-8862
III. LOAN DATA
A. AMOUNT:
$ 246,000.00
B. INTEREST:
Included in lease
C. DATE OF LOAN: Approved August 2, 1982
D. MONTHLY PAYMENT: $ 684.00
E. TERMS:
Lease/Purchase
F. STATUS:
Current through September 1986
G. COLLATERAL: N/A
IV. FINANCIAL POSITION
A. BALANCE SHEET: YES
NO -J..
B. OPERATING STATEMENT: y~
NO
V. NOTES
1) Building, Land, and Attached Equipment Lease if notarized - July 23, 1982.
Q~~
CONSULTANT ,
\\.- 2,.\ -~4
DATE
SUMMARY
I . NAME
A. BUSINESS:
Don I S Drug Store
B. BORROWER:
D. Goldcord. Incorporated
C. MANAGER:
Donald B. Goldstein (President)
II. LOCATION
A. ADDRESS:
1222 West 5th Street
San Bernardino, CA 92411
B. PHONE:
(714) 884-0128
III. LOAN DATA
A. AMOUNT:
Lease only, with a Purchase Option - refer to Exhibit .C.
B. INTEREST:
Included in lease
C. DATE OF LOAN: Lease signed December 30, 1982
D. MONTHLY PAYMENT: $ 1500.00
E. TERMS: ren (10) year lease agreelJl!nt with two five (5)
year extentions
F. STATUS: Current through November 19B6
,
G. COLLATERAL: NIA
IV. FINANCIAL POSITION
A. BALANCE SHEET: YES
NO
~
B. OPERATING STATEMENT:
YES--j.;;--
NO
V. NOTES
I) Lessee is responsible for paying the property taxes on the building
and for paying insurance for the contents.
Q~~~~
Consultant ~
\\_'2..\-i'_
Date
SUMMARY
I. NAME
A. BUSINESS:
Cajunts Seafood Market and Deli
B. BORROWER:
John Earl Ha~~ood, Jr.
C. MANAGER:
Same
II. LOCATION
A. ADDRESS:
2838 West Rialtb Ave., San Bernardino, CA. 92410
B. PHONE:
(714) 820-0522
III. LOAN DATA
A. AMOUNT: $20,000.00
B. INTEREST: 8% per annum
C. DATE OP LOAN: Approved 4/22/86
D. MONTHLY PAYMENT: $191.13
E. TERMS:
15 years - 5 year call date
F. STATUS:
Current through September 1986
G.
Deed of
Deed of
County
property located in Rial"
property located in Lake
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:=ust on real
Trust on real
3) UCC-1
COLLATERAL:
IV. FINANCIAL POSITION
A. BALANCE SHEET: YES
NO 'I...
B. OPERATING STATEMENT: YES_
NO 'I--
V. NOTES Q':T....J~A _
1) Gran~De;~ir.~ Tenancy
2) Promissory Note Agree~ent is notarized - 5/6/86
Consultant
11/20/86
Date
SUMMARY
I. NAME
A. BUSINESS:
FOOTHILL MERIDIAN PLAZA
B. BORROWER:
WILLIE CLARK
C. MANAGER:
SAME
I!. LOCATION
A. ADDRESS:
2666 WEST FOOTHILL BOULEVARD
SAN BERNARDINO, CA 92411
B. PHONE:
(714)
II!. LOAN DATA
A. AMOUNT: $60,000.00
B. INTEREST: 7'1 per annum
C. DATE OF LOAN: Approved 11/7/84
D. MONTHLY PAYMENT:
$46S.18
E. TERMS: 20 YEARS -- IS YEAR CALL DATE
F. STATUS: CURRaNT THROUGH NOVEMBER 1986
G. COLLATERAL: 1) Second Deed of Trust on property known as
Foothill Meridian Plaza -- Januuary 1986 appraised
Fair Market Value of $340,000.00.
IV. FINANCIAL POSITION
A. BALANCE SHEET: YES
NO "f..
B. OPERATING STATEMENT: YES_____
NO 1-
V. NOTES
1. Promissory note is not notarized
2. This is a working capitol loan which was given in six (6) monthly draws
of $10,000.00 each -- funds were for the rehabilitation of existing
progerty and existing records in file appear to substantiate compliance
with that condition.
3. Existing debt on Foothill Meridian Plaza property i~ to Precision
Mortgage Service, Inc.
4. Hr. Clark appears to have other heavy debts.
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CONSULTANT ~
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DATE
SUMMARY
I. NAME
A. BUSINESS,
Heritage House Parking Lot
B. BORROWER:
San Bernardino Economic Development Council, a non~rofit
corporation.
C. MANAGER,
Sa1'l'le
II. LOCATION
A. ADDRESS:
Refer to Exhibit "A" description.
B. PHONE:
NIA
Ill. LOAN DATA
A. AMOUNT:
$75,000.00 -- owed by San Bernardino Economic Development
Council to Pacific Savings Bank.
B. INTEREST:
101 per annum
C. DATE OF LOAN: Agreement by SBBDC to purchase property is dated
April 23. 1987
D. MONTHLY PAYMENT: Quarterly interest only payment of $1,875.00 until
maturity date of September 17, 1987.
E. TERMS: Cash Down of $56,250.00 against a total purchase price of
$131.250.00 -- call date May 5, 1987.
P. STATUS: $75,000.00 Straight Note is due and payable in full on Bay 17,
1987.
G. COLLATERAL: $56,250.00 cash down payment by SBEDe.
IV. FINANCIAL POSITION
A. BALANCE SHEET: YES
NO -,...
B. OPERATING STATEMENT, YES_
NO 'I...
V. NOTES
1. No record of tax or insurance payments by SBEDC.
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CONSULTANT "
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DATE
SUMMARY
I. NAME
A. BUSINESS: La Esperanza Market
B. BORROWER: George A. Aguilar and Teresa Encisco
C. MANAGER: Same
II. LOCATION
A. ADDRESS: 1288 W. 5th St., San Bernardino, CA 92411
B. PHONE: (714) 885-0571
III. LOAN DATA
A. AMOUNT: $326,000.00
B. INTEREST: 10% per annum
C. DATE OF LOAN: Approved 11/17/85
D. MONTHLY PAYMENT: Refer to Promissory Note - Exhibit "Aft
E. TERMS: Refer to Promissory Note - Exhibit" A II
F. STATUS: Technically in default
G. COLLATERAL: UCC-1
IV. FINANCIAL POSITION
A. BALANCE SHEET: YES
NO "A
B. OPERATING STATEMENT: YES_
NO f..
v. NOTES
1) Promissory Note is not notarized
2) An EOC offer to restructure loan has not been accepted
by Mr. Aguilar
3) Deed of Trust is held by SBA and EDC
4) The agreement between EDC and La Esperanza Market is
a Land Contract of Sale Agreement for $326,000.00
Q~ ~ \,_'Z.\-fl~
CONSULTAIIT ~ DATE
SUMMARY
I . NAME
A. BUSINESS:
Julta's Tortilla
B. BORROWER:
Julia's Enterprises. Incorporated
C. MANAGER:
Edward V. Ne~ret.e
II. LOCATION
A. ADDRESS:
1272 West 6th Street
San Bernardino, CA 92411
B. PHONE:
(714) 885-308'
III. LOAN DATA
A. AMOUNT:
$ 30,000.00
B. INTEREST:
8 t per annutll.
c. DATE OF LOAN: Approved July I. 1986
D. MONTHLY PAYMENT:
$ 363.98
E. TERMS:
10 years - 5 year call date
F. STATUS,
Current through November 1986
.
G. COLLATERAL: 1) Ucc-l filing for the new equipment.
2) UCC-l filin~ for the existing fixtures and equi~ent of
borrower.
IV. FINANCIAL POSITION 3) Personal Guarantee from each of the following share
holders, Edward V. Negrete, E. Val Negrete and
Julia ~egrete.
A. BALANCE SHEET: YES
NO "'1-.
B. OPERATING STATEMENT: YES_____
NO ""
V. NOTES
1) Pro~issory Note is notarized - July 3, 1986.
2) In accordance with, Addendum to Loan Agreement and Promissory Note. the
obligation for payment i. a~nded to chan~e the commencement of the
installment payments from August 1, to September 1, 1986.
3) On August 1, 1991 the balance of
be in the aoount of $18,193.96)
Q~~~~
CON~ULTANT ~
princip&l and interest then due, estimated t
shall he due and payable.
\\_'1.\- 'Rr.
DATE
SUMMARY
I. NAME
A. BUSINESS:
Comrwnity Ftnancial SeTvi.ces
B. BORROWER:
Leticia Jov Arcinie28 and James A. Clark
C. MANAGER:
Leticia Joy Arciniega
II. LOCATION
A. ADDRESS:
501 North Mt. Vernon Avenue
San Bernardino, CA 92411
B. PHONE:
(714) 381-7566
III. LOAN DATA
A. AMOUNT: $ 60,000.00
B. INTEREST: 10 'I. per annum
c. DATE OF LOAN: Approved September 12, 1985
D. MONTHLY PAYMENT:
$ 1,274.82
E. TERMS:
5 years (See Extension ARreement dated Noveftber 3, 1986)
F. STATUS: Payments for November 1986 through April 1986 have heen
heen deferrfd in aecordance with EDe Extension Agreement
dated Nove~ber 3, 1986 - Account vas current through
G. COLLATERAL: October 1986.
1) Second Trust Deed from Gordon R. Swing, Haroldine A. Swing, and
Gordon R. Swing, Jr. - refer to Exhibit "B".
IV. FINANCIAL POSITION 2) Trust Deed on each of three (3) properties owned by
James A. Clark and Leticia Jov Arcinie~a. husband a1
wife - refe:- ::0 Exhibit "e".
A. BALANCE SHEET: YES
NO of..
B. OPERATING STATEMENT: YES_____
NO "f...
v. NOTES
1) Loan payments for (11/1/86 - 4/1/87) have been deferred until
(11/1/90 - 4/1/91) - see Extension ARreement dated 11/3/86.
2) Promissory Note is notarized - October 7, 19R5.
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\\ _2.\ DAi:f.
SUMMARY
I . NAME
A. BUSINESS: Progressive Mortgage Corporation
B. BORROWER: Same
C. MANAGER: Henry L. Jacks (President)
II. LOCATION
A. ADDRESS:
1256 West Baseline Street
San Bernardino, CA 92411
B. PHONE:
(714) 3BI-6431
III. LOAN DATA
A. AMOUNT: $ 27,314.00
B. INTEREST: 71 per annum
C. DATE OF LOAN: Approved March 7, 19B6
D. MONTHLY PAYMENT: $ 245.51
E. TERMS:
15 years
F. STATUS:
In accordance with Promissory Note, payments are
deferred to Aptil 1, 19BB
G. COLLATERAL: Second Oeed of Trust on business property
IV. FINANCIAL POSITION
A. BALANCE SHEET: YES
NO 1\
B. OPERATING STATEMENT: YES_
NO +..
V. NOTES
1) Promissory Note agreement was notarized on March 7, 1986.
2) The Oeed of Trust on File is held by, Progressive Mortgage Corporation,
and recorded on March 7, 1986.
Qx:~~,:.
CONS T ~
\\ _'2.\-oIlt.
DATE
SUMMARY
I. NAME
A. BUSINESS:
OPERA TIOM SECOND CHANCE, INCORPORATED
B. BORROWER:
CORPORATION
C. MANAGER:
Horris C. Antwine, Chairman
Robert L. Cole, Secretary
Frances Grice, Executive Director
II. LOCATION
A. ADDRESS:
341 West Second Street, Suite 1
San Bernardino, CA 92401
B. PHONE:
714/884-8764
III. LOAN DATA
A. AMOUNT: $200,000.00
B. INTEREST: 127. per annum
c. DATE OF LOAN: Approved September 14, 1983
D. MONTHLY PAYMENT: $4,500.00
E. TERMS: 2 years principal balance of $146,856.00 due and payable
October I, 1985.
P. STATUS: Loan in technical default 88 of February 1984.
,
G. COLLATERAL:
UCC-l -- $400,000.00 in computer equipment (valued
in 1983).
IV. FINANCIAL POSITION
A. BALANCE SHEET: YES
NO i.
B. OPERATING STATEMENT: YES_
NO f,.
V. NOTES
1. Operation Second Chance has filed bankruptcy.
2. SBBDC filed a claim in the bankruptcy case of Operation Second Chance, Inc.
on August 8, 1986, in the amount of $272,623.83.
3. SB!DC borrowed $100,000.00 from San Bernardino County at lO~ payable in
2 years. This loan has not been paid.
4. Loan was to have been converted to grant followinR County Board of
~erV18ors approach.
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