La. Admin. Code tit. 7 § III-115

Current through Register Vol. 50, No. 9, September 20, 2024

Section III-115 - Lenders

A. Eligibility Requirements

1. The lender must be an entity listed in §101 and must be experienced in originating and servicing agricultural loans.

2. The lender must be qualified and in good standing under all state and federal laws applicable to lenders.

3. Within the past three years, the lender cannot have been listed on the federal comptroller's Supervised or Watch List, or any substantially similar listing of any state or federal regulatory agency responsible for regulating banks and financial institutions.

4. Each lender must be approved by LAFA prior to participating in the program; LAFA retains the right to reject any lender, even though that lender meets the minimum requirements established by these regulations, or to accept a lender which does not meet these minimum requirements.

B. The lender must collect all payments required under the terms and conditions of a loan note and pay such amounts to the trustee. All such payments must be accompanied by a certification of the lending officer, in a form acceptable to trustee, stating that the computation of interest on the loan is in accordance with terms as approved by LAFA, and affirming correctness of the amount being submitted.

C. The lender must notify the trustee in no more than five days after any default in any loan and upon LAFA's request, declare all payments on such loan to be due and owing and take such action as may be required by LAFA to obtain the amounts owed thereunder, which amounts shall be paid to the trustee.

D. Whenever any loan is in default (see §101), the lender shall, on or before the twenty-fifth day of each month (or, if such day is not a business day, the next business day thereafter), submit a report to the trustee, containing, as of the twentieth day of the month (or, if such day is not a business day, the next business day after the twentieth of the month), the following information:

1. the principal balance due under the loan note;

2. a statement of the procedures undertaken by the lender to collect such amount and the result of such procedures; and

3. a statement as to the overall status of the loan. This report is not due in any month when there are no delinquencies or defaults in any loan serviced by the lender.

E. Each lender must administer and service loans originated by the lender and must maintain the loan file for each loan for three years following the date when the loan is fully paid or otherwise terminated.

La. Admin. Code tit. 7, § III-115

Promulgated by the Department of Agriculture, Agricultural Finance Authority, LR 10:869 (November 1984).

AUTHORITY NOTE: Promulgated in accordance with R.S. 3:266, R.S. 3:270 and Section 103(b)(6) of the Internal Revenue Code of 1954, as amended.