§ 62-90.5 — Conditions for making loans - Review of applications -

Oklahoma § 62-90.5

• Jurisdiction: Oklahoma
• Title 62: Public Finance

Text

Certification of good standing. A. A participating financial institution that desires to make a rural economic development loan shall accept and review applications for loans in connection with qualified economic development projects. A package of more than one rural economic development loan may be developed by a development company certified by the U.S. Small Business Administration or a political subdivision of this state or an agency thereof, and such entity may submit an application for one or more loans. The financial institution shall apply all usual lending standards and shall exercise due diligence to determine the creditworthiness of each applicant and to determine if the loan should be granted. Loans made under the Rural Economic Development Loan Act shall conform to the following conditions: 1. The maximum amount of loans under the Rural Economic Development Loan Act in connection with a particular qualified economic development project shall be determined by need in the rural area in which the project is located and the number of jobs created. The Oklahoma Department of Agriculture, Food, and Forestry shall have final decision-making authority as to the maximum amount of each loan; 2. The applicant shall certify on the loan application that the loan will be used exclusively in connection with the qualified economic development project in accordance with the purpose of the Rural Economic Development Loan Act; 3. No loan shall be approved for any otherwise eligible recipient when fifty percent (50%) or more of the interest in or control of such otherwise eligible recipient is owned directly or indirectly by a person who owns directly or indirectly fifty percent (50%) or more of or controls another participating recipient; 4. No loan shall be made to any officer or director of the financial institution making the loan or to any entity in which any such officer or director maintains a controlling interest; 5. No loan shall be made to any employee of the Oklahoma Department of Agriculture, Food, and Forestry or to any entity in which any employee maintains a controlling interest; 6. Whoever knowingly makes a false statement concerning a rural economic development loan application shall be prohibited from participating in the Rural Economic Development Loan Program; and 7. Rural economic development loans may be renewed if the amount of principal has been reduced by a minimum of five percent (5%) per year and all interest has been paid from the time of the original loan. B. The participating financial institution shall forward to the State Treasurer a rural economic development loan application in the form and manner prescribed and approved by the Department. The application shall include information regarding the amount of the loan requested by each applicant, the number of jobs to be created, and such other information the Department requires. C. Upon receipt of a completed rural economic development loan application, the Department shall forward the loan application to the Oklahoma Tax Commission and the Oklahoma Employment Security Commission. The Department shall review the loan package to determine if the loan requested meets the requirements set forth under the Rural Economic Development Loan Act. Within ten (10) days of receipt of the loan package, the Tax Commission and the Oklahoma Employment Security Commission shall determine and certify whether or not the applicant is in good standing. The Department shall make a recommendation concerning the application to the State Board of Agriculture, after receipt of the responses from the Tax Commission and the Oklahoma Employment Security Commission. No applicant shall be approved without certification of good standing with the Tax Commission and Oklahoma Employment Security Commission. Rejected applications may be resubmitted after reasons for rejection have been addressed.

Legislative History

Added by Laws 2002, c. 486, § 5, eff. Jan. 1, 2003. Amended by Laws 2003, c. 87, § 4, emerg. eff. April 15, 2003; Laws 2013, c. 118, § 21, eff. Nov. 1, 2013.