Louisiana Administrative Code › Title 7 - AGRICULTURE AND ANIMALS › Part V - Advertising, Marketing and Processing › Chapter 3 - Market Commission-Agricultural Products Processing Development Law-Loans and Loan Guaranties › Subchapter A - Authorization and Administration of Market Commission Loans and Loan Guaranties and Cooperative Endeavor Agreements under the Agricultural Products Processing Development Law › Section V-305 - Loan and Loan Guaranty Authorization

Current through Register Vol. 50, No. 6, June 20, 2024
A. The market commission may loan to any
				  person funds to be actually expended to acquire, construct, furnish, equip,
				  make necessary improvement to or purchase land for any agricultural plant which
				  will be occupied by the person, which loan shall not exceed 75 percent of the
				  value of the property offered as security pursuant to a first mortgage, but
				  requiring at a minimum the execution by the borrower of a note secured by a
				  first mortgage on the property being acquired or constructed and payable to the
				  commission within such time and under such terms and conditions together with
				  such additional endorsements or other security as may be required by the
				  commission.
B. The market
				  commission may loan to any person funds for operating capital, market
				  development and product inventories, which loan shall not exceed 75 percent of
				  the value of the property offered as security pursuant to a first mortgage, but
				  requiring as a minimum the execution by the borrower of a note or notes secured
				  by a first mortgage on property, including but not limited to product
				  inventories and accounts receivable from the sale of inventories, under such
				  terms and conditions together with such additional endorsements or other
				  security as may be required by the commission.
C. The market commission may guarantee, on an
				  interim or long-term basis, all or part of loans for an amount to be actually
				  expended to acquire, construct, furnish, equip, make necessary improvement to
				  or purchase land for any agricultural plant made by any lender to any person
				  approved by the commission, provided that whenever the commission guarantees
				  the payment of such loan, the commission shall make and enter into a guarantee
				  agreement with the lender and the borrower setting forth the terms and
				  conditions under which the commission is obligated and the extent to which
				  repayment of the loan is guaranteed and secured. Each loan which is guaranteed
				  by the commission shall require as a minimum the execution of a note or notes
				  secured by a first mortgage on property. Whenever the commission enters into
				  such a loan guarantee agreement, the commission may impose and collect an
				  origination fee not to exceed 1 percent of the amount of the loan
				  guaranteed.
D. The market
				  commission may guarantee, on an interim or long-term basis, all or part of
				  loans for an amount to be actually expended for operating capital, market
				  development and product inventories made by any lender to any person approved
				  by the commission, provided that whenever the commission guarantees the payment
				  of such loan, the commission shall make and enter into a guarantee agreement
				  with the lender and the borrower setting forth the terms and conditions under
				  which the commission is obligated and the extent to which repayment of the loan
				  is guaranteed and secured. Each loan which is guaranteed by the commission
				  shall require as a minimum the execution by the borrower of a note or notes
				  secured by a first mortgage on property, including product inventories and
				  accounts receivable from the sale of inventories, under such terms and
				  conditions together with such additional endorsements or other security as may
				  be required by the commission.
AUTHORITY NOTE:
					 Promulgated in accordance with R.S. 3:450.3 and R.S.
					 3:450.5.