The meeting convened at 1:00 PM at the Main office. Mrs. K. Didden - Chair, W. Pedas, R. Anderson and A. Didden were present. Messrs. J. Marchese, J. Karafa, C. Reddick, K. Arnold, R. McKinley, C. Heiges, Ms. Renee Aldrich, B. Gutierrez, E. Venegas and C. Steele also attended. T. Barnes and S. Venti attended by phone.
K. Didden called the meeting to order. The customer overdraft and the employee overdraft reports were reviewed and initialed. R. Anderson made a motion to waive the reading of the previous minutes from the May 9, 2017 and May 16, 2017 meetings. R. Aldrich noted a change for the May 16, 2017 minutes for New Letterman Associates loan fee should read 0.375% not .0375%. Upon motion made and seconded, the minutes were…show more content… R. McKinley presented the following bridge loan for review.
Ralph and Sharon Dietze (Borrowers) are requesting a $360,000 marketable securities secured bridge loan to facilitate the purchase of a new home in Arlington, VA. Securities to be pledged/hypothecated by former Virginia Commerce Bank and UBSI Director Peter Converse. Other details of the financing are as follows:
Term: 4 year
Rate: 4%; Interest only; A minimum curtailment of $150,000 on the first to occur of (1) Sale of home (18280 Buccaneer Terrace, Leesburg, VA); or, (2) one year from closing. Thereafter, the remaining loan balance shall be termed out over 4 years in an annual curtailment of $52,500 and the stock collateral can be partly released so that our collateral margin on the remaining loan balance and stock collateral shall maintain a max 70% LTV. $250 fee
LTV: 70% maximum; 58% based upon a $39/per share price as of 5/16/2017
Guarantors: Ralph and Sharon Dietze
After discussion, based on the cash flow from the Borrowers (sale of primary residence) and the liquidation of collateral, the Committee approved the bridge loan as submitted.
Next, R. McKinley and R. Aldrich presented the following new loan requests.
Century Theater, LLC (Borrower) was formed in 2009 for the sole purpose of holding the subject real estate. The borrower is owned 55% by Joel Kelty and 45% by Ilan Scharfstein. The term loan up to the lesser of $2,200,000 or 75% of the