2006 Louisiana Laws - RS 3:408 — Prohibition; discretionary action

§408.  Prohibition; discretionary action

A.  The commission shall not enter into any loan or guarantee otherwise authorized by this Part which is in violation of the prohibitions contained in this Subsection or any regulations of the commission.

(1)  The commission shall not knowingly approve any loan or guarantee if the applicant therefor has presently pending or outstanding any charge or liability relating to failure or inability to pay promissory notes or other evidence of indebtedness; nor shall the commission approve any loan or guarantee if the applicant has presently pending, at the federal, state, or local level, any proceeding concerning denial or revocation of a necessary license or permit.

(2)  The commission shall make no loan or guarantee until it has first received written refusal from no less than two banks or other financial institutions normally serving the territory and making loans or guarantees of this nature in the general course of its business.

B.(1)  When the commission deems it practicable or advisable, applicants shall be encouraged and assisted in obtaining participation on commission loans and guarantees from the Small Business Administration, the Farmers Home Administration, and the Bank of Cooperatives.

(2)  The commission may request written reasons of refusal from the financial institutions which reject the applicant's request for a loan or guarantee, and the commission may consider such reasons in determining whether to grant or deny an application.

Acts 1978, No. 242, §1.