La. Admin. Code tit. 7 § V-109

Current through Register Vol. 50, No. 11, November 20, 2024

Section V-109 - Approval of Application for Market Commission Loan

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 market commission shall not consider any incomplete application.

B. The applicant 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 market commission.

C. Approval of the loan must not result in encumbrance(s) on the property offered as security in excess of 75 percent of the appraised value of the property.

D. The period for which the loan is requested must not exceed five years, provided, however, that the State Market Commission may, under conditions hereinafter set forth, extend the period of the loan for an additional period not to exceed a total of 15 years from the date of the original loan, as required under R.S. 3:407(G).

E. Approval of a direct loan application shall be limited to 75 percent of the value of the property offered as security when covered by a first mortgage to the State Market Commission.

F. Approval of a direct loan application shall be limited to 50 percent of the value of the property offered as security when covered by a second mortgage to the State Market Commission.

G. Approval of a loan guaranty application shall be limited to 75 percent of the total amount required by the borrower.

H. Approval of a direct loan or 75 percent of the amount expended for purchase, construction, or necessary improvement to facilities that manufacture containers for farm products must be secured by a first mortgage to the market commission if the amount loaned is in excess of 50 percent of the value of the property offered as security, but may be secured by a second mortgage to the market commission if the amount loaned is 50 percent or less than the value of the property offered as security, as provided in R.S. 3:407(C)(3).

I. A market assessment and/or feasibility study conducted or secured by the market commission staff must support the advisability of the loan.

J. The loan application must satisfy all legal requirements, as evidenced by the written approval of the department attorney.

La. Admin. Code tit. 7, § V-109

Promulgated by the Department of Agriculture, Market Commission, LR 6:254 (June 1980).

AUTHORITY NOTE: Promulgated in accordance with R.S. 3:407 and R.S. 3:404.