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-311 - Approval of Application for a Loan or Loan Guaranty

Current through Register Vol. 50, No. 6, June 20, 2024
A. The applicant must provide all required
				  information at least 20 working days prior to the meeting at which the
				  application will be considered. The commission shall not consider any
				  incomplete application.
B. The
				  applicant or its representative must appear in person at the meeting at which
				  the application will be considered, in order to provide any additional
				  information which may be required by the commission.
C. Approval of the loan or loan guaranty must
				  not result in encumbrance(s) on the property offered as security in excess of
				  75 percent of the aggregate appraised value of all property offered as
				  security. Moreover, no loan or loan guaranty may be approved unless the
				  security therefore is at a minimum a first mortgage on all property offered as
				  security. The commission may reject any appraisal which it feels would result
				  in a violation of this limitation.
D. The period for which the loan or loan
				  guaranty is requested must not exceed five years, provided, however, that the
				  market commission may, under conditions hereinafter set forth, extend the
				  period of the loan for an additional period not to exceed a total of 20 years
				  from the date of the original loan.
E. A market assessment and/or feasibility
				  study conducted or secured by the applicant or the market commission staff must
				  support the advisability of the loan or loan guaranty.
F. The loan or loan guaranty application must
				  satisfy all legal requirements, as evidenced by the written approval of the
				  department's attorney.
G. In the
				  event of extreme urgency affecting the continuation of existing jobs or the
				  loss of a business opportunity to create new jobs, the market commission may
				  either in open session or by telephone poll suspend the full requirements of
				  the loan or loan guaranty application information and require the immediate
				  submission of information sufficient to demonstrate the urgency, the
				  advisability of the loan or loan guaranty and the adequacy of the security to
				  be provided for the loan. In this event, however, the applicant shall provide
				  the full information within such time as the commission fixes in conjunction
				  with the granting of the suspension. Such suspension may be granted only when
				  the amount of the loan or loan guaranty does not exceed the sum of $100,000 and
				  the loan or loan guaranty is fully secured by first mortgages on immovables and
				  personal liability of sufficient solvent individuals. The granting of and
				  justification for a suspension, as provided herein, shall be documented and
				  made a matter of permanent public record.
H. In the event the land upon which a new
				  agricultural plant will be constructed or an existing plant which will be
				  expanded is already subject to a lien, mortgage or encumbrance which the
				  applicant proposes to pay off with loan proceeds from the market commission or
				  any other lender, such application can be approved only if the amount of the
				  loan does not exceed 75 percent of the value of all security to be provided,
				  the amount of the loan left after satisfying the encumbrances will finance the
				  construction or improvements proposed and the applicant does not realize any
				  cash from the loan except for operating capital, market development or product
				  inventories. If the amount of the lien, mortgage or encumbrance to be satisfied
				  out of the loan proceeds is disproportionate to the amount to be used for new
				  construction, improvement or expansion, then the commission may reject the
				  application on the grounds that it is a refinancing and is prohibited by the
				  law creating the program. The commission considers disproportionate to be an
				  amount in excess of 25 percent of the loan amount sought in the
				  application.
AUTHORITY NOTE:
					 Promulgated in accordance with R.S. 3:450.3 and R.S.
					 3:450.5.