Citrus Seasonal Operating Loan: These loans are generally made to fund the seasonal operating expenses of a citrus operation. Maturities are usually structured to coincide with the receipt of the proceeds of the crop, generally within one (1) year. Operating loans may exceed one (1) year when marketing practices dictate, such as the use of cooperative participation pools with extended pool payout. These loans are typically secured by a specific citrus crop but can also be secured by equipment or real estate. Repayment comes from the proceeds of a specific citrus crop. Interest rates are variable based on a spread above Prime or Libor. Interest can be paid monthly, quarterly or semi-annually depending on your cash flow. Revolving Line Of Credit: This type of loan may contain a clean-up clause to assure the seasonal nature of the borrowing or may be appropriately supported by cash flow budget projections to justify the exclusion of a clean-up requirement. These loans are typically secured by a specific citrus crop but can also be secured by equipment or real estate. Repayment comes from the proceeds of a specific citrus crop and/or other income sources. Interest rates are variable based on a spread above Prime or Libor. Interest and can be paid monthly, quarterly or semi-annually depending on your cash flow. Short and Intermediate Term Commercial Loans: Short and intermediate term loans cover a period of between 1 through 10 years. They are generally made for the purpose of grove rehabilitation, wells and irrigation systems, new planting or resetting, equipment, barns, and other capital improvements. Loan terms will generally not exceed seven (7) years but may be up to ten (10) years in some special purpose cases. The terms are based on the economic life of the item being financed. Interest rates may be based on Prime, Libor, or a Fixed interest rate. Interest can be repaid monthly, quarterly or semi-annually while principal can be repaid monthly, quarterly, semi-annually or annually. Actual repayment terms are dictated by your cash flow. Collateral for these loans may consist of agricultural real estate, non-agricultural real estate, chattels or other tangible or intangible personal property. Long Term Commercial Loans: Loans in this category cover a period of over 10 years through 20 years. They may be made for the purpose of citrus grove purchases, refinancing debt on citrus groves, grove rehabilitation, wells and irrigation systems, new planting or resetting, grove development and growing costs, and other high cost capital improvements which require a longer term amortization. Real estate loan terms are usually limited to fifteen (15) years but cannot exceed twenty (20) years and collateral must be a first mortgage on agricultural real estate. Typically the maximum loan amount is limited to the lesser of 70 -75% of the purchase price or appraised value. The remaining 25%-30% equity cannot come from other loan proceeds (either commercial bank, credit union or private individual). It is possible that part or all of the equity can come from other agricultural real estate or from a monetary gift that is not expected to be repaid. Interest rates may be based on Prime, Libor, or a Fixed interest rate. A 1% prepayment penalty applies to any Commercial Fixed rate loan with a term over 15 years. Interest can be repaid monthly, quarterly or semi-annually while principal can be repaid monthly, quarterly, semi-annually or annually. Actual repayment terms are dictated by your cash flow. Clean-up Clause: A clause in the Loan Agreement which requires that the loan be repaid to a zero balance for a specified period of time, usually for a 30 day period within the 12 months. Prime: It is an administered rate set by the Chairman of the Federal Reserve. It typically lags market rates. LIBOR: London Interbank Offered Rate. It is a rate at which one bank is prepared to lend to another bank in the Euro deposit market. It will quickly reflect current market conditions.