2006 Louisiana Laws - RS 3:549 — Underwriting of loans

§549.  Underwriting of loans

A.  The commission may underwrite or guarantee the repayment of seventy-five percent of any loan made by a bank, financial institution, or federal agency to any person eligible according to R.S. 3:546 for the purpose of raising, growing, and selling of livestock, poultry, eggs, or agronomic, horticultural, silvicultural, or aquacultural crops which, in the judgment of the commission, will provide for more of these products to be marketed in this state.

B.  Any person desiring a guarantee set forth by the provisions of this Section must be recommended to the commission in accordance with R.S. 3:545.

C.  No loan shall be approved under this Section for more than three thousand dollars, nor shall the repayment period on any loan exceed five years.

D.  The rate of interest of any loan made in accordance with this Section shall not exceed the average prevailing rate of interest on farm loans made by banks, financial institutions, or federal agencies in the community where the loan is made.

E.  Before any loan may be guaranteed under this Section, the loan shall be submitted to the commission upon forms furnished by the department.  The commission shall examine the ability of the applicant to repay the loan.  The commission may approve the application if the criteria of R.S. 3:546 and this Section are satisfied and shall notify the applicant of its decision.

F.  Any applicant who is refused approval for such loans under this Section shall be entitled to a written explanation stating the reason or reasons for such disapproval by the commission.  If the circumstances of the applicant relating to the reasons for the denial change, he may reapply.

G.  The commission may take such steps as it deems necessary or as required by the rules and regulations applicable thereto to protect the interest of the state in any property mortgaged to secure guarantees made under this Section, including paying off the mortgage or the interest of a lending agency and being subrogated to the interest of the lending agency in the property mortgaged.

Acts 1981, No. 158, §1.