SAE F&H Corp. has run a successful loan program to support housing loans for Fraternity chapter houses for over 75 years, if one includes when F&H was known as the Fraternity Endowment Fund.
Those House Corporations needing a loan are instructed to consider SAE F&H to be the “bank of last resort” since we encourage alumni to use local banks. The loans from F&H should be used when local financing is not available or for emergency purposes when time is of the essence.
Also, life safety loans are emphasized and supported by F&H
- to ensure safe housing for our members,
- lower property insurance premiums for our House Corporations, and
- to help lower the Fraternity’s risk management insurance.
The SAE Financial & Housing Corporation Board of Directors responsibility is to protect the Fraternity Endowment Fund (the funds used to make loans to house corporations). It is for that reason there is a very detailed application process for each loan.
The loan application packet will be sent upon requested. Staff will review each application and once completed, will forward to the Board of Directors for a vote. If the loan is approved, staff will coordinate with a local attorney, selected by F&H, to handle the due diligence and loan closing.
It is recommended that house corporations ensure that they have a clean title on the property, and that they have paid off any vendors, contractors, etc., who are owed any monies. In addition, the house corporation is encouraged to ensure that they are in good standing with the State in which they are domiciled and are following their own internal articles of incorporation and bylaws as it relates to borrowing funds. Successful loan applicants will be asked to modify their articles of incorporation with terms that deals with the possibility of a dissolved house corporation.
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