§ 62-90.6 — Funding of loans - Percentage rate - Administrative costs

Oklahoma § 62-90.6

• Jurisdiction: Oklahoma
• Title 62: Public Finance

Text

- Certification of compliance - Forwarding of payments - State liability. A. Loans made pursuant to applications approved by the Oklahoma Department of Agriculture, Food, and Forestry shall be subject to the availability of funds pledged to the Rural Economic Development Loan Revolving Fund, and if a loan is not funded for such reason, it shall be funded in the order of the priority given each loan application by the Department. B. Upon acceptance of the loan or any portion thereof, the Department shall notify the participating financial institution and the applicant. The participating financial institution shall fund the loan to the approved applicant to the extent of its unencumbered pledge to the Rural Economic Development Loan Revolving Fund, not to exceed the amount of the loan accepted. If the amount of the participating financial institution's unencumbered pledge is less than the amount of the loan as accepted, the Department shall notify all other participating financial institutions with an unencumbered pledge to the fund and shall require each such institution to transfer an amount to the Rural Economic Development Loan Revolving Fund. Such amount shall be equal to the amount of the remainder of the loan multiplied by the percentage of the institution's unencumbered pledge of all unencumbered pledges. The Department shall transfer such amounts to the participating financial institution making the loan. C. The percentage rate of the loan shall be reduced compared to the rate imposed with respect to other loans made by the financial institution to similar recipients for similar purposes in an amount determined by the financial institution making the loan. D. The Department may retain in the Rural Economic Development Loan Fund an amount not to exceed two percent (2%) of the total amount of a loan. Amounts retained pursuant to the provisions of this subsection may be expended by the Department for costs associated with administration of this act and may be paid by the State Treasurer to a development company certified by the U.S. Small Business Administration or a political subdivision of this state or agency thereof for costs associated with developing a loan package if all loans in the package are approved pursuant to the provisions of this act. E. A certification of compliance with this section in the form and manner as prescribed by the Department shall be required of the participating financial institution. F. The participating financial institution making the loan shall, within three (3) business days of receipt, forward all payments received for repayment of the loan to the Department for immediate deposit to the Rural Economic Development Loan Revolving Fund, until the amount deposited is equal to the amount transferred by other participating financial institutions in connection with the loan together with interest at the rate applied to the loan. The Department shall forward such payments to such other participating financial institutions in proportion to the amounts transferred in connection with the loan. Remaining payments received for repayment of the loan shall be retained by the participating financial institution making the loan. G. Neither the State of Oklahoma nor the Department shall be liable to any participating financial institution in any manner for payment of the principal or interest on a rural economic development loan.

Legislative History

Added by Laws 2002, c. 486, § 6, eff. Jan. 1, 2003. Amended by Laws 2003, c. 87, § 5, emerg. eff. April 15, 2003; Laws 2013, c. 118, § 22, eff. Nov. 1, 2013.