Fbnega Title Holding Company

“The annual 990 is reviewed by the treasurer and finance committee and then brought before the board”

“The organization makes its governing documents, conflict of interest policy and financial statements available to the public upon request”

“This organization does not pay compensation”

“This organization does not pay compensation”

“The organization makes its governing documents, conflict of interest policy and financial statements available to the public upon request”

“The organization is a qualified active low income community business (qalicb) for new markets tax credit purposes. The primary mission of the corporation is holding title to property, collecting income from that property, and turning over the entire amount of such income, less expenses, to the food bank of northeast georgia, inc, an organization exempt from federal income tax pursuant to section 501(c)(3)”

“In december 2016, the food bank received approximately 7,350,000 in net proceeds from the financing agreements related to capital expenditures at its two distribution facilities and debt service on loans used to finance capital expenditures on its distribution facilities. The financing arrangement was structured with a third party financial institution (the "nmtc investor") associated with chase bank, an investment fund, and two community development entities (the "cdes") majority owned by the investment fund. This transaction was designed to qualify under the federal new market tax credit ("nmtc") program, pursuant to section 45d of the internal revenue code of 1986, as amended. Through this transaction, the food bank has secured low interest financing to finance capital improvements at both of the food bank's distribution centers. Upon the closing of the nmtc transaction, the food bank provided an aggregate of approximately 5,078,250 to the investment fund, of which 2,634,292 was borrowed from chase bank and paid in full immediately after the sale of the food bank's capital assets to the investment fund, in the form of a note receivable, with a term of 26 years, bearing an interest rate of 1% per annum. This 5,078,250 in proceeds plus an additional 2,515,000 of net capital from the nmtc investor were contributed to the investment fund and used by the cdes to make loans in the amount of 7,350,000 to a subsidiary of the food bank of northeast georgia title holding company. These loans bear interest at approximately 1.3%. The title holding company used the proceeds from the loans to purchase the majority of the capital assets of the food bank. The capital assets will serve as the collateral on the financing arrangement. The food bank leases the capital assets from the title holding company. This transaction also includes a put/call feature whereby, at the end of a seven year compliance period, the food bank will be entitled or permitted to purchase the nmtc investor's interest in the investment fund. The value attributable of the put price is nominal. Consequently, if exercised, the put could result in the forgiveness of approximately 2,271,750. The call price will be valued at the net present value of the cash flows of the lease inherent in the transaction. Upon expiration of the net market tax credit in december 2023, the food bank recognized 2,677,190 in debt forgiveness income in the current year on the statement of activities. The nmtc investor is subject to 100% recapture of the new market tax credits it receives for a period of seven years as provided in the internal revenue code and applicable u.s. Treasury regulations. The food bank is required to be in compliance with various regulations and contractual provisions that apply to the new market tax credit arrangement.”