| AEC provides members the opportunity
to apply for low interest (7.5%) loans to enable them
to finance energy efficient retrofits. |
| |
| Loans may be made for: |
- High efficiency electric heating and cooling systems
- Ceiling, wall and floor insulation
- Storm or replacement windows
- Caulking, weatherstripping and other infiltration
controls
- Attic ventilation systems
|
| Structural Loan Requirements |
- Loan proceeds must be used for permanent residences
and/or commercial businesses occupied during the entire
calendar year.
- Loan proceeds may not be used for rental property
except and unless the loan is carried by the owner
and a first mortgage of the property is available
as collateral or an equally valued property or monetary
account is used as collateral.
- Only residences or businesses on permanent foundations
are eligible for lending. (Loans will not be made
on mobile homes both single wide or double wide unless
axles & wheels have been removed and the structure
is permanently attached to a non-movable foundation.)
- Loans will be made for retrofit of existing structures
or additions to existing structures only.
|
| Borrower Requirements (one of the following) |
- Borrower must own sufficient equity in the home
or business to fully indemnify the amount of the loan,
or
- Borrower must own a separate parcel of land or homesite
on which a first mortgage may be obtained, or
- Borrower must have sufficient cash savings & be
willing to purchase a long term certificate of deposit
co-signed by an executive officer of Alfalfa Electric
in the amount of the loan, to expire not before the
final installment of the ERC loan. All interest earned
with the CD during the tenure of the loan will remain
with the borrower, or
- Borrower may obtain an irrevocable letter of credit
(fee for such absorbed by borrower) from an accredited
lending institution such as a bank or employee credit
union. Said letter of credit will fully indemnify
any outstanding dollar amounts of the ERC loan, or
- If none of the above requirements can be satisfied,
Board approval must be sought, regardless of the loan
amount.
|
| Loan Limits |
- Minimum ERC loan will be $2500.00 -- All loans of
$2500 up to $4000 must be repaid in equal monthly
installments within a period of five years or less.
- Maximum ERC loan will be $10,000.00 -- Loans in
excess of $4000 may be carried for a term up to but
not exceeding seven years.
|
| Submittals |
- All loan requests must be accompanied by a final
contractor bid for such work to be done.
- Any other legal documents required by Alfalfa Electric
Cooperative to complete lending procedure.
|
