15-0706_AMERINATIONAL COMMUNITY SERVICES, INC_Letter from AmerinationalJuly 6, 2015
Ayako Rautcrkus
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
RE: Notice of Discontinuation of the Funds Disbursement Service
RECEIVED
JUL i 0 2Bt&
Dear Ayako,
As mentioned in a previous letter from us dated May 22, 2015, AmeriNational will be discontinuing its
Funds Disbursement service offered through American Bank. We are pleased to introduce Farmers
State Bank of Hartland. \TN ("FSB'O as a new direct partner for your funds disbursement needs.
FSB is quite familiar with this service and is ready to assume the service responsibilities upon your
direction. JRey are a highly regarded institufion that will deliver the kind of personal attention you
have come to expect. They have a long history wiih AmeriNational, and arc looking forward to
offering this service for you. They will also be providing some additional capabilities that w-ere not
previously in place. Please see the enclosed informational brochure about FSB's services, which also
includes their contact information. If you would like to visit with their staffer if you have questions
about their services, they will be happy to talk with you at your convenience.
We bave enclosed a contract amendment tbat will authorize AmeriNational to transfer these services,
including all deposits and records, to FSB. Please review the enclosed amendment and. if acceptable,
sign and return to me at the address below. If > ou have another service provider that >'ou W'Ouid like to
engage, please provide me with their name and contact information (including telephone number)
along with an authorization to transfer deposits and records to them.
We request either the executed amendment or alternative provider information be returned to our office
by Juiv 3 D\5 at the following address or via email to aandersonT/'ameiinational.nct:
AmeriNational Community Services
Attn: Amber Anderson
217 South Newton Ave.
Albert Lea, MN 56007
:SXS) l<^^-l(^2^ • (507) 377-0030 . hiiv 1 74Su:si • 217 S W'wion Ave.. AlhtM-T Lea. MN 56007 • www.umehnationai.net
Quality Through Innovation and Experience
After your authorization, we will work with the new provider to transition the services and balances in
an orderly fashion.
Should you have any quesdons or concerns, please do not hesitate to reach out to me at 866-779-5546
or via email at aanderson@amerinational.net. I would be happy to talk with you further about this
transaction, or answer any other questions you have.
Sincerely,
Amber Anderson
Marketing & Contracts Manager
-^'-^""^^'iti' 'i"'^' 377-6030 • Fax < 562) 745-I2S1 > 217 S. Neuu-n Ave.. Allx-rl Lea. MN 56007 • vv ww.amcrinational.net
Quality Through Innovation and Experience
Taking gmOiv amtkoi uiSSt '
FUNDS DISBURSEMENT
My involvement v/ith Amennationai Community Services began
in 1999 as a member of ttie Board of Directors until 2001.
I have kept in close contact with the Management of
AmeriNational over the intervening years, and am excited for
the opportunity to work with their team again. This long history
with AmeriNational, and our shared commitment to affordable
housing, will enhance the great service you have been
receiving the past several years. Along with continuing the
high level of personal service you are accustomed to, Farmers
State Bank will expand the daily cutoff
time to 12:00 p.m. Central Standard
Time and offer Online Banking access,
upon request. We look forward to
working with you, and are confident
Farmers State Bank will satisfy all your
Funds Disbursement needs.
Sincerely,
Daniel Otten, CEO
Fund Disbursement Services - How It Works
Total project proceeds are forwarded to Farmers State Bank
(FSB) and held in trust for disbursement of funds according to
your requirements. FSB shall deposit the funds into a custodial
trust account, it's simple: you only need to cut one check or
initiate one electronic funds transfer, and FSB will disburse
an unlimited number of checks for construction contractor
stage payments, multiple equipment purchases, and/or stage
disbursements of working capital loans and grants.
FSB is experienced with the multiple funding sources used
In housing and economic development programs. We can
prioritize the disbursement of funds from several funding source
associated with one project and will provide corresponding
reports to be used as official subsidiary journals.
A fast turnaround of payment requests ensures delivery of
checks back to you or directly to payees is made within 48 hour;
of request. When requests are made by 12:00 p.m. GST, the
check will be mailed the same day.
The funds disbursement services wil
detailed steps:
be based on the followim
1. OPENING ACCOUNT: Upon loan approval, FSB will open a
borrower account that includes borrower and project informatior
You will then forward loan proceeds and completed Control
Instructions to FSB. The Control Instructions should include the
following information:
a. Owner(s) name
b. Contractor(s)
c. Job site address
d. Amount of funds being held
e. Instructions on how funds are to be disbursed
f. List of authorized signers and borrowers/owners
with signatures
2. DISBURSEMENT PROCESS: When requested by you, FSB
will provide check disbursements to parties designated by you
in connection with the loans. Such disbursements are outlined
in an Authorization for Payment, which includes information
regarding the amount of the disbursement, the parties to be
paid, signatures of your representatives authorized to make
disbursements, and the borrower's authorizing signatures.
FSB will verify proper authorization to disburse funds and
'pAT?\>lt'DC MAILING ADDRESS: JT/VIAJVLt 214 5TH ST, FREEBORN, MN 56032
fannersstatebankmn.com EQII«IIIOU«K
Member FDIC LENDER
Mem idonmoiim m
FUNDS DISBURSEMENT
that amounts are correct and in agreement with original Control
Instructions and Authorized Signatures. All checks shall be sent to
the City, unless otherwise directed by you. Checks will be issued
payable to the contractor, or other payees as directed by you. Funds
will be disbursed from your account the same day when the request
is received by 12:00 p.m. GST. Requests received after 12:00 p.m.
GST are processed the next business day.
3. CHANGE ORDERS: Change Orders are used to make a change
in the project amount or payment schedule. A Change Order may
occur at any time during a project.
4. CONTINGENCY: Additional funds may be added to a project
in anticipation of unforeseen construction costs. FSB will hold
contingency at your request and release funds upon receipt of an
Authorization for Payment. This process is subject to your policies
and procedures.
5. RECORDING THE NOTICE OF COMPLETION: As applicable,
after your final inspection on a project, a Notice of Completion
is executed by the borrower and forwarded to FSB for recording
with the appropriate County Recorder. FSB shall mail the Notice
of Completion by certified mail within two (2) business days after
receipt.
6. REPORTS AND RECORD KEEPING: FSB will provide you with
a detailed monthly Account Statement of all transactions completed
and the balances remaining in each account. Records will be
maintained for ail accounts and are available to you upon request.
7. ACCOUNT CLOSE OUT: After payout of all funds in the account,
excess funds will be disbursed according to your instructions. FSB
will forward a Final Closing Statement to you, comprising a complete
record of all transactions in one report. FSB will also forward a copy
of the report to the borrower for their records, if requested by you.
Your Key Contacts
Product Manager - Brandon Brackey (507) 373-1945
Payment Processors - Marcia McKean, Cindy Whitcomb,
and Amy Schmidt (507) 863-2371
Epnail /'c.at fH(ff)farmpr<;c;talphpnLfmn mm
Fee Schedule
$130 per project
$5 per month for Online Banking access, upon request
Risk Management & Audit
By choosing FSB our clients gain the protection from a regulated
environment, as we have oversight by the FDIC as well as slate
regulatory bodies. FSB complies with all applicable local, state and
federal laws and regulations. A bank-wide Compliance Department is
responsible for overseeing internal audit, compliance and other risk
management functions. Controls and safeguards are in place to ensure
the protection of confidential information. We maintain an aggressive
internal and external audit process. In addition to internal audits of
operational areas, we engage an annual Inlormation technology risk
assessment audit, Safely and Soundness Exams conducted by the
State of Minnesota and the FDIC, FDIC Compliance Exams, and annual
Financial Statement Audits. FSB has a comprehensive package of
insurance coverage In place. This includes professional liability coverage
of $1,000,000 per occurrence, blanket bond (fidelity bond) in the
amount of $2,000,000, and Cyber Liability insurance of $1,000,000
along with automobile, personal property and other standard coverage.
FARMERS
STATE BANK
MAILING ADDRESS:
214 5TH ST, FREEBORN, MN 56032
fannersstatebankmn.com JsundL
Member FDIC LENDER