2006 Ohio Revised Code - 901.83. Effective until 10-15-07.

§ 901.83. Contract of guarantee between financial institution and director.
 

(A)  Upon approval by the controlling board under division (A)(3) of section 901.82 of the Revised Code of the release of money to be used for a loan guarantee under the program established under section 901.80 of the Revised Code, the financial institution providing the loan and the director of agriculture shall enter into a contract of guarantee establishing the terms of the guarantee. 
 

Under the contract of guarantee, the director of agriculture shall agree to deposit with the financial institution the amount of a loan guarantee consisting of money released by the controlling board for that purpose, in an amount that is a specified percentage of the amount loaned to the eligible applicant by the financial institution. The director shall agree that if the loan recipient defaults on the loan and the financial institution exhausts all legal and equitable remedies as specified in the contract of guarantee in an attempt to obtain complete repayment, but does not receive complete repayment, then the loan guarantee shall be used to reimburse the financial institution. 
 

In exchange, the financial institution shall agree to pay annually to the department of development a specified percentage of the amount of the loan guarantee, which shall be deposited into the family farm loan fund created in section 166.031 [166.03.1] of the Revised Code. The financial institution also shall agree to lend the guaranteed portion of the loan to the eligible applicant at an interest rate below current market rates that reflects the state's reduced interest rate. 

(B)  A guaranteed financial institution, except to the extent that its rights are restricted by the contract of guarantee, may protect and enforce, by any suitable form of legal proceedings, any of its rights granted under the laws of this state or granted by the contract of guarantee. Such rights include the right to compel performance of all duties of the director required by the contract of guarantee. The person who is the director at the time the contract of guarantee is entered into or at a later time, and the director's officers or employees, are not liable in their personal capacities on any contract of guarantee entered into by the director. 

(C)  The total amount of loan guarantees provided to any one financial institution shall not exceed five hundred thousand dollars. For the purposes of this division, "financial institution" refers to the financial institution as a whole corporate entity, and does not refer to a banking office or branch, as those terms are defined in section 1101.01 of the Revised Code. 
 

HISTORY: 147 v H 621. Eff 3-16-98.
 

The provisions of § 403.11 of 151 v H 66, amending the repeal date for RC § 901.83 as set by § 3 of 147 v H 621 and amended by § 147 of 148 v H 283, § 153 of 149 v H 94, and § 137.07 of 150 v H 95, read as follows: 

SECTION 403.11. That Section 3 of Am. Sub. H.B. 621 of the 122nd General Assembly, as most recently amended by Am. Sub. H.B. 95 of the 125th General Assembly, be amended to read as follows: 

"Sec. 3. That sections 166.031, 901.80, 901.81, 901.82, and 901.83 of the Revised Code are hereby repealed, effective October 15, 2007."