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TIN:
SCHEDULE O
(Form 990 or 990-EZ)
Department of the Treasury
Internal Revenue Service
(Form 990 or 990-EZ)
Department of the Treasury
Internal Revenue Service
Supplemental Information to Form 990 or 990-EZ
Complete to provide information for responses to specific questions on
Form 990 or 990-EZ or to provide any additional information.
Attach to Form 990 or 990-EZ.
Information about Schedule O (Form 990 or 990-EZ) and its instructions is atwww.irs.gov/form990.
OMB No. 1545-0047
2015
Open to Public
Inspection
Inspection
Name of the organization
SOMERCOR 504 INC
Employer identification number
36-3837330
36-3837330
| Return Reference | Explanation |
|---|---|
| FORM 990, PART VI, SECTION A, LINE 4 | BYLAWS WERE AMENDED AND RESTATED ON OCTOBER 23RD, 2015. THE CHANGES TO THE BYLAWS WERE AS SUMMARIZED BELOW. BOARD OF DIRECTORS ARE NOW THE SOLE HOLDERS OF VOTING POWER AND ARE THE ONLY ONES WHO CAN FILL VACANCIES ON THE BOARD OF DIRECTORS OR THE COMMITTEES. THE RANGE FOR THE NUMBER OF BOARD OF DIRECTORS HAS CHANGED TO A MINIMUM OF NINE AND MAXIMUM OF 25. THE QUORUM HAS BEEN UPDATED TO 50% OF CURRENT DIRECTORS, WITH AT LEAST 2 HAVING COMMERCIAL LENDING EXPERIENCE. THE PRESIDENT NOW HAS THE AUTHORITY TO ENGAGE AND DISCHARGE ALL EMPLOYEES AND AGENTS OF THE CORPORATION AND FIX THEIR COMPENSATION, SUBJECT TO REVIEW BY THE BOARD OF DIRECTORS. IN THE ABSENCE OF OR EVENT OF REFUSAL TO ACT BY THE PRESIDENT, THE EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER SHALL JOINTLY PERFORM THE DUTIES OF THE PRESIDENT, HAVING ALL SUCH POWERS AND RESTRICTIONS OF THE PRESIDENT. THE CHIEF OPERATING OFFICER/CHIEF CREDIT RISK OFFICER ("CHIEF OPERATING OFFICER") SHALL PRESIDE OVER THE CORPORATION'S CREDIT DEPARTMENT. EXCEPT AS SET FORTH IN SECTION 3 OF ARTICLE VI, THE CHIEF OPERATING OFFICER'S CONCURRENCE SHALL BE REQUIRED PRIOR TO SUBMITTING A LOAN TRANSACTION TO THE LOAN COMMITTEE. THE CHIEF OPERATING OFFICER SHALL RESOLVE ANY AND ALL QUESTIONS OR DISCREPANCIES RAISED BY THE LOAN COMMITTEE WITH REGARD TO ANY CONTEMPLATED LOAN TRANSACTION. WITH THE ASSISTANCE OF THE EXECUTIVE VICE PRESIDENT, THE CHIEF OPERATING OFFICER SHALL BE RESPONSIBLE FOR ALL DAY-TO-DAY OPERATIONS INCLUDING CREDIT, PROCESSING AND SERVICING OF THE CORPORATION'S LOAN TRANSACTIONS; AND SHALL PERFORM ALL DUTIES INCIDENT TO THE OFFICE OF CHIEF OPERATING OFFICER AND SUCH OTHER DUTIES AS FROM TIME TO TIME MAY BE ASSIGNED TO THE CHIEF OPERATING OFFICER BY THE PRESIDENT OR BY THE BOARD OF DIRECTORS. THE SERVICING DIRECTOR SHALL BE RESPONSIBLE FOR THE DAY-TO-DAY SERVICING AND ADMINISTRATION OF THE CORPORATION'S LOAN PORTFOLIO AND SHALL PRESIDE OVER THE CORPORATION'S SERVICING DEPARTMENT. THE SERVICING DIRECTOR SHALL PERFORM SUCH OTHER DUTIES AS FROM TIME TO TIME MAY BE ASSIGNED TO THE SERVICING DIRECTOR BY THE PRESIDENT OR BY THE BOARD OF DIRECTORS. THE BOARD OF DIRECTORS SHALL APPOINT DIRECTORS TO SERVE ON AN EXECUTIVE COMMITTEE AS SET FORTH IN THIS SECTION ("EXECUTIVE COMMITTEE"). THE EXECUTIVE COMMITTEE SHALL MEET THE SAME ORGANIZATIONAL AND REPRESENTATIONAL REQUIREMENTS AS THE BOARD OF DIRECTORS SET FORTH IN ARTICLE IV, EXCEPT THAT THE EXECUTIVE COMMITTEE MUST HAVE A MINIMUM OF FIVE (5) DIRECTORS PRESENT TO CONDUCT BUSINESS. ALL MEMBERS OF THE EXECUTIVE COMMITTEE SHALL BE VOTING MEMBERS OF THE EXECUTIVE COMMITTEE. THE EXECUTIVE COMMITTEE IS DELEGATED THE AUTHORITY TO GRANT CREDIT APPROVAL FOR LOANS GREATER THAN $2,000,000 AND TO RATIFY LOANS, APPROVED BY A LOAN COMMITTEE, OF $1,000,000 TO $2,000,000 PRIOR TO DEBENTURE CLOSING. THE EXECUTIVE COMMITTEE IS ALSO DELEGATED THE AUTHORITY TO RATIFY ADVISORY ACTIONS SUBMITTED TO IT FOR RATIFICATION BY THE LOAN COMMITTEE. FOR ALL EXECUTIVE COMMITTEE CREDIT APPROVALS OF LOANS OR RATIFICATIONS OF LOAN COMMITTEE APPROVALS OR ADVISORY ACTIONS, AT LEAST TWO (2) DIRECTORS WITH COMMERCIAL LENDING EXPERIENCE SATISFACTORY TO THE SBA WHO ARE MEMBERS OF THE EXECUTIVE COMMITTEE, OTHER THAN THE PRESIDENT, MUST BE PRESENT AND VOTE. NO FURTHER DELEGATION OR REDELEGATION OF THE AUTHORITY OF THE BOARD OF DIRECTORS IS PERMITTED. THE EXECUTIVE COMMITTEE SHALL HAVE THE FOLLOWING ADDITIONAL RESPONSIBILITIES: (A) TO HAVE ONE MEMBER PRESIDE OVER MEETINGS OF THE BOARD OF DIRECTORS ALONG WITH THE PRESIDENT; (B) TO BE A LIAISON BETWEEN THE CORPORATION'S MANAGEMENT TEAM AND THE BOARD OF DIRECTORS; (C) TO MITIGATE ANY ISSUES BETWEEN THE CORPORATION'S MANAGEMENT TEAM AND THE BOARD OF DIRECTORS; AND (D) TO MAINTAIN REGULAR CONTACT WITH THE CORPORATION'S MANAGEMENT TEAM AND THE BOARD OF DIRECTORS. MEMBERS OF THE EXECUTIVE COMMITTEE SHALL NOT SERVE FOR MORE THAN FIVE (5) CONSECUTIVE YEARS ON THE EXECUTIVE COMMITTEE. MEMBERS OF THE EXECUTIVE COMMITTEE SHALL HAVE STAGGERED TERMS SUCH THAT NO MORE THAN TWO (2) EXECUTIVE COMMITTEE MEMBERS WILL REACH THE FIVE (5) YEAR TERM LIMIT IN ANY GIVEN YEAR. THE EXECUTIVE COMMITTEE SHALL AT ALL TIMES OPERATE IN COMPLIANCE WITH SBA REGULATIONS. ALL THE APPROVALS EVIDENCING THE CONSENT SHALL BE DELIVERED TO THE SECRETARY TO BE FILED IN THE CORPORATE RECORDS. THE ACTION TAKEN SHALL BE EFFECTIVE WHEN ALL THE DIRECTORS HAVE APPROVED THE CONSENT UNLESS THE CONSENT SPECIFIES A DIFFERENT EFFECTIVE DATE. ANY SUCH CONSENT APPROVED IN WRITING BY ALL THE DIRECTORS SHALL HAVE THE SAME EFFECT AS A UNANIMOUS VOTE AND MAY BE STATED AS SUCH IN ANY DOCUMENT FILED WITH THE ILLINOIS SECRETARY OF STATE UNDER THIS ACT. A DIRECTOR WHO IS PRESENT AT A MEETING OF THE BOARD OF DIRECTORS AT WHICH ACTION ON ANY MATTER IS TAKEN SHALL BE CONCLUSIVELY PRESUMED TO HAVE ASSENTED TO THE ACTION TAKEN UNLESS HIS OR HER DISSENT SHALL BE ENTERED INTO THE MINUTES OF THE MEETING OR UNLESS HE OR SHE SHALL FILE HIS OR HER DISSENT TO SUCH ACTION WITH THE PERSON ACTING AS SECRETARY OF SUCH MEETING BEFORE ADJOURNMENT THEREOF OR SHALL FORWARD SUCH DISSENT BY REGISTERED OR CERTIFIED MAIL TO THE SECRETARY IMMEDIATELY AFTER THE ADJOURNMENT OF THE MEETING. SUCH RIGHT TO DISSENT SHALL NOT APPLY TO A DIRECTOR WHO VOTED IN FAVOR OF SUCH ACTION. EACH COMMITTEE, COMMISSION OR ADVISORY BOARD MAY ADOPT RULES FOR ITS OWN GOVERNMENT NOT INCONSISTENT WITH THESE BYLAWS OR WITH RULES ADOPTED BY THE BOARD OF DIRECTORS FROM TIME TO TIME. |
| FORM 990, PART VI, SECTION A, LINE 6 | THE ORGANIZATION HAS MEMBERS. |
| FORM 990, PART VI, SECTION A, LINE 7A | THE ORGANIZATION'S MEMBERS ELECT BOARD MEMBERS, PER BY LAWS. |
| FORM 990, PART VI, SECTION A, LINE 7B | IN THIS ORGANIZATION, SOME ITEMS MAY REQUIRE MEMBERS TO VOTE. |
| FORM 990, PART VI, SECTION B, LINE 11 | THE ORGANIZATION'S TREASURER REVIEWS FORM 990 BEFORE IT IS FILED. |
| FORM 990, PART VI, SECTION B, LINE 12C | THE ORGANIZATION'S CFO IS RESPONSIBLE FOR MONITORING COMPLIANCE WITH THE CONFLICT OF INTEREST POLICY ON AN ANNUAL BASIS. |
| FORM 990, PART VI, SECTION B, LINE 15B | THE ORGANIZATION'S COMPENSATION COMMITTEE USES COMPARABILITY DATA WHEN ESTABLISHING THE COMPENSATION OF ITS OFFICERS. |
| FORM 990, PART VI, SECTION C, LINE 19 | THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST AT ITS ADMINISTRATIVE OFFICES. |
| FORM 990, PART XII, FINANCIAL STATEMENTS AND REPORTING | THE ORGANIZATION DID NOT CHANGE ITS OVERSIGHT PROCESS OR SELECTION PROCESS DURING THE TAX YEAR. |
| FORM 990, PART XI, RECONCILIATION OF NET ASSETS, LINE 8, PRIOR PERIOD ADJUS | ATTACHMENT IN LIEU OF FORM 3115 PER REV. PROC. 2014-34 AUTOMATIC ACCOUNTING CHANGE #153 SOMERCOR 504 INC 36-3837330 10/01/2015-09/30/2016 AUDITED FINANCIAL STATEMENTS 2015 FORM 990-ACCOUNTS RECEIVABLE DECREASED BY $16,221,917 2015 FORM 990-UNRESTRICTED NET ASSETS DECREASED BY $16,221,917 ON OCTOBER 1, 2015, THE ORGANIZATION ELECTED TO CHANGE ITS METHOD OF ACCOUNTING FOR LOAN SERVICING FEE REVENUE TO RECORD THE REVENUE AS RECEIVED, WHEREAS IN ALL PRIOR YEARS THE LOAN SERVICING FEE REVENUE WAS RECORDED BASED ON THE PRESENT VALUE OF FUTURE LOAN SERVICING FEE PAYMENTS TO BE RECEIVED, ADJUSTED FOR THE PRESENT VALUE DISCOUNT, FUTURE SERVICING COSTS AND LOAN DEFAULTS. THE ORGANIZATION BELIEVES THAT RECORDING THE LOAN SERVICING FEE REVENUE AS RECEIVED MORE APPROPRIATELY SUPPORTS REVENUE RECOGNITION GUIDANCE FOR LOAN SERVICING FEES DESCRIBED IN THE CODE OF FEDERAL REGULATIONS AND AT THE RECOMMENDATION OF THE ORGANIZATION'S REGULATORY AGENCY. IN ADDITION, MANAGEMENT PERFORMED A DETAILED ANALYSIS OF BALANCES OUTSTANDING IN DEPOSIT LENDER REFUNDS PAYABLE AND DETERMINED THAT THERE WERE OUTSTANDING LIABILITIES THAT SHOULD HAVE BEEN RECORDED AS INCOME PRIOR TO 2015. |
For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.
Cat. No. 51056K
Schedule O (Form 990 or 990-EZ) 2015
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