* * * * *
(a) * * *
(2) Part II of the Plan titled ``Operational Procedures'' must serve as the RLF Recipient's internal operating manual and set out administrative procedures for operating the RLF consistent with ``Prudent Lending Practices,'' as defined in Sec. 307.8, the RLF Recipient's environmental review and compliance procedures as set out in Sec. 307.10, and EDA's conflicts of interest rules set out in Sec. 302.17 of this chapter.
(b) * * *
(2) * * *
(ii) Financing policies and portfolio standards that are consistent with EDA's policies and requirements; and
(3) The Plan must demonstrate an adequate understanding of commercial loan portfolio management procedures, including loan processing, underwriting, closing, disbursements, collections, monitoring, and foreclosures. It also shall provide sufficient administrative procedures to prevent conflicts of interest and to ensure accountability, safeguarding of assets and compliance with Federal and local laws.
(c) * * *
(1) An RLF Recipient must update its Plan as necessary in accordance with changing economic conditions in the Region; however, at a minimum, an RLF Recipient must submit an updated Plan to EDA every five years.
(2) An RLF Recipient must notify EDA of any change(s) to its Plan. Any material modification, such as a merger, consolidation, or change in the EDA-approved lending area under Sec. 307.18, a change in critical management staff, or a change to the strategic purpose of the RLF, must be submitted to EDA for approval prior to any revision of the Plan. If EDA approves the modification, the RLF Recipient must submit an updated Plan to EDA in electronic format, unless EDA approves a paper submission.