EXHIBIT 6.3
MASTER COLLECTION CONTRACT AND LOAN SERVICING AGREEMENT WITH SFG DATA SERVICES,
INC.
SFG DATA SERVICES, INC.
MASTER CONTRACT COLLECTION AND SERVICING AGREEMENT
PARTIES
This Master Contract Collection and Servicing Agreement is made this day
of , 1999 between SFG Data Services, Inc., a Washington corporation
("Collection Agent"), whose mailing address is 1239 120th Ave NE, Suite J,
Bellevue, WA 98005 and SFG Mortgage and Investment Co., Inc., a Washington
corporation ("Payee"), whose mailing address is PO Box 860, Renton, WA 98057 and
Capital Management Group, Inc., a Washington corporation ("Management Agent"),
whose mailing address is PO Box 860, Renton, WA 98057.
WITNESSETH:
1.0 APPOINTMENT
Collection Agent is hereby appointed as the agent and representative of
Payee for the purpose of collection and servicing of Payee's receivables, either
real estate contracts or promissory notes secured with deeds of trust, that
Payee delivers to Collection Agent for said purpose ("Receivables").
2.0 DUTIES OF COLLECTION AGENT
It is agreed that the authorities, duties and responsibilities of Collection
Agent in connection with the collection and servicing of the Receivables shall
be, as follows:
2.1 COLLECTION OF PAYMENT. Collection Agent shall take all reasonable
steps to collect and enforce the collection of all payments and other charges
due to Payee from the Receivables in accordance with the terms thereof.
Collection Agent is hereby authorized to accept all full payments tendered under
said Receivables and to issue receipts thereof. If said payment is not a full
payment bringing paid collected instrument to a current status, Collection Agent
is instructed to contact Payee for further instruction as whether to accept said
funds or to return said funds tendered to payors. Notwithstanding the foregoing,
Collection Agent is authorized and instructed to accept any payment which does
not include the late charge as specified herein if any and to add that amount to
the principal balance of the loan, if any.
If a check or an electronic funds transfer is rejected, due to insufficient
funds, or any other reason a return charge of $25.00 per account will be
collected from the payors and retained by the Collection Agent (example: the
returned check was payment on three different accounts, the return check charge
would be $75.00). Also if Collection Agent has advanced funds on behalf of the
Payee under these instruction, Payee shall immediately reimburse the Collection
Agent for those funds advanced. It is further understood that if payments are
made by negotiable instruments other than cash, no disbursement by Collection
Agent is necessary until said instruments have cleared the Collection Agents
collection account.
It is understood and agreed that Collection Agent's services include
automated delinquency notices to the payor on the first business day following
fifteen days and thirty day past due on such accounts. Collection Agent will
continue with periodic delinquency notices until the earlier of the time the
payor brings the instrument to a current status or the account becomes 60 days
past due at which time the account will be returned to Payee for further
collection efforts including referral to Payee's attorney for foreclosure.
Collection Agent will provide monthly status reports to the Payee regarding the
status of all accounts.
2.1.1 DISBURSEMENT OF FUNDS. Proceeds of the payments are to be disbursed
as instructed by the payee with written instructions.
2.1.2 INTEREST COMPUTATION. Interest will be calculated as stated in the
collection instrument. If the interest calculation is not stated in the
instrument the Collection Agent will use a 365-day factor and a thirty- (30) day
month. Interest will be credited to the payment due each period without regard
to the actual date the payment is received.
2.2 EVIDENCE OF INSURANCE. Collection Agent shall take all reasonable
steps to verify that each account has provided evidence of insurance pursuant to
the terms of underlying loan documents including that Payee is named as
lienholder on each policy with a lenders' loss payable endorsement. Collection
Agent will provide a monthly report to Payee as to the status of insurance on
each account. Collection Agreement will notify Payee of each account where
evidence of insurance cannot be verified. Payee will then force place insurance
on said account and Collection Agent will include the cost of such insurance in
the payment invoice to the payor.
2.3 BUILDER'S ASSISTANCE PROGRAM. Collection Agent shall all reasonable
steps to administer and process disbursal of workorder holdback accounts as they
apply to loans under the Builder's Assistance Program. It is understood that
Collection Agent may charge the payor an administration fee as provided for in
the loan documents for this service for its costs in regards to this service.
Collection Agent is authorized to disburse holdback accounts subject to
completion of improvements to the property securing the obligation only upon
final review and approval of Payee. Collection Agent will provide a monthly
report to Payee as to the status of each account with a workorder holdback. This
report will include notification of any loan with such holdbacks that should be
placed in default due to non-performance under the terms of the loan documents
relating to the workorder holdback. Upon request from a payor to release all or
a portion of the workorder holdback, Collection Agent will perform an inspection
of the property and prepare a report, satisfactory to Payee, on the status of
the project and will include Collection Agents recommendation of the amount of
workorder holdback that should be released. Payee shall then make a
determination, in its sole discretion, of the amount to be released to payor.
3.0 SERVICING CHARGES
Management Agent agrees to pay the Collection Agent for its services
pursuant to this agreement, on a quarterly basis, an amount equal .000625
multiplied the outstanding aggregate principle balance of the loans being
serviced at the end of each calendar quarter. Servicing charges are due on the
first day of the first month of each quarter for the prior quarter, but no later
than the fifteen days after the due date. Collection Agent hereby agrees that
Management Agent has the sole responsibility for payment of Servicing Charges
under the terms of the Management Agreement between Payee and Management Agent.
Collection Agent shall not withhold any funds due Payee for non-payment of
Servicing Charges.
4.0 DELIVERY OF DOCUMENTS
Upon full payment of a Receivable account, Payee will deliver the following
documents to Collection Agent:
4.1.1 If the instrument being collected is a Real Estate Contract, the
original statutory warranty (Fulfillment) Deed to be transmitted to the payor by
Collection Agent.
4.1.2 If the instrument being collected is a Promissory Note secured with a
Deed of Trust, the original Promissory Note marked "Paid in Full," original Deed
of Trust and original Request for Full Reconveyance to be transmitted to the
trustee by Collection Agent.
5.0 TERM
Any party may cancel this agreement upon 60 days written notification to the
other parties.
6.0 RESPONSIBILITY
It is understood that the duties of the Collection Agent in regard to this
matter are as set out above, and that Collection Agent assumes no responsibility
beyond the exercise of reasonable care in the performance of such duties.
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7.0 ENTIRE AGREEMENT.
These instructions constitute the entire understanding of the parties
hereto. These instructions may not be modified or amended except by written
instrument executed by all parties.
AGREED AND ACCEPTED this day of , 1999.
SFG MORTGAGE AND INVESTMENT COMPANY, INC. ("Payee")
By:
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Its:
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CAPITAL MANAGEMENT GROUP, INC. ("Management Agent")
By:
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Its:
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SFG DATA SERVICES, INC. ("Collection Agent")
By:
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Its:
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