Louisiana Administrative Code › Title 7 - AGRICULTURE AND ANIMALS › Part III - Agricultural Finance › Chapter 1 - General Provisions › Section III-135 - Procedure Required for Funding Agricultural Loans with Proceeds of the Bonds

Current through Register Vol. 50, No. 6, June 20, 2024
A. Initiation
				of Eligible Loan Purchase. A lender may submit to the issuer, the trustee and
				the co-trustee a proposal to sell agricultural loans in substantially the form
				attached as Exhibit B hereto. Such form shall include a description of the
				rates, fees and terms of the loans made by the lender to the borrower and a
				description of the project financed, including its location and characteristics
				The lender shall also describe the security for the loan. Upon receipt of a
				proposal to sell agricultural loans, the issuer, the trustee and the
				co-trustee, on behalf of the issuer, shall review such proposal. If the issuer
				determines that the loans to be purchased are agricultural loans and that the
				loans to be purchased are eligible loans meeting the requirements of the Act,
				the issuer shall be empowered to send a conditional approval, in substantially
				the form attached as Exhibit C hereto, to the lender. The form of agreement
				shall be enclosed with the conditional approval.
B. Initiation of Repurchase Obligation. A
				national bank may submit to the issuer, the trustee and the co-trustee a
				proposal to enter into repurchase obligation in substantially the form attached
				as Exhibit D hereto. Such form shall include a description of the rates, fees,
				and terms of the loans to be made by the national bank to the borrower and a
				description of the project financed, including its location and
				characteristics. The national bank shall also describe the security for the
				loan. Upon receipt of a proposal to enter into repurchase obligation, the
				issuer, the trustee and the co-trustee, on behalf of the issuer, shall review
				such proposal. If the issuer determines that the loans to be made by the
				national bank are agricultural loans and determines that the loans to be made
				by the national bank are eligible loans meeting the requirements of the Act,
				the issuer shall be empowered to send a conditional approval, in substantially
				the form attached as Exhibit E hereto, to the national bank. The form of the
				repurchase obligation shall be enclosed with the conditional
				approval.
C. Procedure to Purchase
				Eligible Loan. Upon execution of the agricultural loan purchase agreement by
				the lender, the lender shall return and the trustee, on behalf of the issuer,
				shall receive the agreement, which must be signed by the lender within 14 days
				of postmark date of the conditional approval. The issuer shall then sign the
				agreement and notify the trustee. The trustee shall establish a loan closing
				date. The trustee shall, by date telephonic notice, inform the issuer and the
				lender of such date. Such date is referred to herein as the "Loan Purchase
				Date". On the loan purchase date, and upon completion of the program checklist
				by the trustee, which shall be forwarded to the issuer and Standard and Poor's
				Corporation, the issuer shall direct the trustee to disburse moneys from the
				loan fund for loan purchase.
D.
				Procedure to Enter into Repurchase Obligation. Upon execution of the repurchase
				obligation by the national bank, the national bank shall return and the
				trustee, on behalf of the issuer, shall receive the repurchase obligation which
				must be signed by the national bank with 14 days of postmark date of the
				conditional approval. The issuer shall then sign the repurchase obligation and
				notify trustee. The trustee shall establish a loan closing date. The trustee
				shall, by telephonic notice, inform the issuer and the national bank of such
				purchase date, and upon completion of the program checklist by the trustee,
				which shall be forwarded to the issuer and Standard and Poor's Corporation, the
				issuer shall direct the trustee to disburse moneys from the loan fund for the
				purpose of making a loan to the national bank.
AUTHORITY NOTE:
				  Promulgated in accordance with
				  R.S.
				  3:266(4).