The amount of the Guarantee payment is calculated using this formula:
Outstanding principal balance of the loan |
X |
Percentage of Guarantee |
= |
WHEDA's Guarantee Payment |
In addition to the Guarantee payment, WHEDA will agree to participate in those expenses that were preapproved by WHEDA and related to workout, litigation and/or liquidation. (For purposes of calculating expense participation, up to 90 days of interest will be defined as "expense"). However, WHEDA's exposure will be limited to the lesser of:
a) 10% of the original loan amount; or
b) the guarantee percentage applied against actual expenses
In no event will the aggregate payment of expenses plus guarantee percentage exceed the original guaranteed amount.
WHEDA's closing fee may be included in the loan request; however, closing fees will not be guaranteed and will be subtracted from the guarantee payment request.
