Emergency Land Bank
The Emergency Land Bank provides working capital for critical land conservation projects throughout the state of Tennessee. The Foundation uses the revolving fund to advance dollars to secure an option or, if necessary, acquire important property. The Foundation is then repaid by either local fundraising or through resale of the property to a public agency. Borrowers would repay the full amount with interest over a predetermined period of time through a capital fundraising drive or through other methods. The money is then available for the next project. Interest generated from the bank will provide sustainable support for the Foundation.
The Foundation charges an interest rate equivalent to one percentage point below the prime lending rate. The actual rate will be fixed by the executive committee at the time of the loan and adjusted quarterly thereafter, if necessary. Generally, loans will be made for a period not to exceed one year.
Requirements for Use of the Bank
The Foundation will require entities seeking use of The Bank to provide the following information:
- Conservation purpose of property
- Fundraising Plan or other “take-out” mechanism (government funding, etc.)
- Clear title
- Legal authorization of Borrower
Expenses Associated with Use of the Bank
Borrowers are responsible for all costs incurred with preparation of legal documents, appraisals, and other documentation submitted to The Foundation. Costs associated with review and/or preparation of documentation by Foundation general counsel and staff will be assumed by the Foundation.
Allocation of the Bank
The Foundation reserves the right in its sole discretion to determine the use of its Bank. Because the size of the Bank is limited, we will evaluate competing proposals with preference given to projects providing maximum conservation value and public benefit for the cost, projects furthering the goals of our Foundation, and projects involving properties that are imminently threatened by conversion to non-conservation uses.
Adding to the Bank
- Planned gifts
- Donation of Surplus Real Estate
- Special Campaigns
Loans are approved at the discretion of the executive committee and with the recommendation of the chief executive. Additionally volunteer board members with a specialty in real estate law will serve as volunteer advisors to the executive committee for the purpose of loan review.