CEC Loans

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                             CHOCTAW ELECTRIC COOPERATIVE, INC.

                                                LOAN APPLICATION GUIDELINES

Loan Eligibility:

1. Depending upon the availability of funds, loans may be made to members who own the structure to be improved, as well as the real estate on which the structure is located. The member must hold title to the structure and real estate being improved and may be asked to provide proof of ownership.

 2. The structure must be receiving electric service from the Cooperative.

 3. An employee of the Cooperative must make a facility energy audit of the structure. Certain recommendations may be made.

 4. Loans cannot be made to refinance earlier conservations obligations or structures to be built or under construction. (This does not apply to add-ons or remodeling of existing structures.)

5. Any member in good standing with the Cooperative is eligible for a    "CEC Loan" subject to certain guidelines outlined on the loan application.

           a. The member must be in good standing and have a prompt pay   history with the Cooperative

            b. An "A" or "B' credit rating with the Cooperative is required for      immediate approval. A "C" credit rating will be reviewed prior to being approved/denied.

             c. The member must own the real estate and structure to which            improvement will be made or installed and may be asked to provide proof of ownership.

Loan Application Process:

1. The member must complete the loan application and return to a Choctaw Electric Cooperative office.

2. Upon receipt of the application, the member:

           a. Will have an energy audit performed by the Cooperative and must pass without major deficiencies.

           b. Will obtain and submit with the application an estimate of the planned improvements.

           c. The member must sign the Statement of Planned Improvements.

3. When improvements and estimates are approved by the member and the cooperative,

the loan will be processed. Member will be required to sign:

           a. a promissory note.

           b. an agreement that if full payment is not made on the electric bill,   the loan payment will be deducted first.

4. When all necessary forms have been signed and the member and the Cooperative agree on the cost of improvements, the improvements may be completed.

5. The Cooperative and member will approve the work and advance of funds will be made to the contractor and member.

Loan Terms and Conditions:

1. The minimum amount of any CEC Loan will be $250.

2. The maximum amount of any CEC Loan will be $7,500.

3. The maximum scheduled repayment will not exceed five years {60 months)

4. Interest rate on CEC Loans will be eight percent (8%).

5. The monthly payment will be added to the member's electric bill.

          a. The due date of the first payment will be established by Customer Services Department and will be dependent upon the member's billing cycle.

6. When the member makes installation, the loan will be limited to the cost of materials utilized.

7. The Cooperative will issue funds to the member and the contractor once all loan requirements have been processed.

8. Inspection can be made throughout the process and at completion.

Improvements Eligible for Loan Funds.

I. Caulking or weather stripping.

2. Heat pumps, water heaters and central heating or air-conditioning units with "16 SEER" or higher.

3. Insulation for ceiling, all, floor, duct, or pipe.

4. Storm or thermal windows.

5. Storm or thermal doors.

6. Programmable thermostats.

7. Attic ventilation fans.

STATEMENT OF NON-DISCRIMINATION

The Cooperative will not discriminate against any member in a protected category (race, color, religion, sex, national origin, age, disability, or certain classifications based on genetic information, or any other characteristic protected by federal, state, or local law).