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-305 - Loan and Loan Guaranty Authorization

A. The market commission may loan to any person funds to be actually expended to acquire, construct, furnish, equip, make necessary improvement to or purchase land for any agricultural plant which will be occupied by the person, which loan shall not exceed 75 percent of the value of the property offered as security pursuant to a first mortgage, but requiring at a minimum the execution by the borrower of a note secured by a first mortgage on the property being acquired or constructed and payable to the commission within such time and under such terms and conditions together with such additional endorsements or other security as may be required by the commission.

B. The market commission may loan to any person funds for operating capital, market development and product inventories, which loan shall not exceed 75 percent of the value of the property offered as security pursuant to a first mortgage, but requiring as a minimum the execution by the borrower of a note or notes secured by a first mortgage on property, including but not limited to product inventories and accounts receivable from the sale of inventories, under such terms and conditions together with such additional endorsements or other security as may be required by the commission.

C. The market commission may guarantee, on an interim or long-term basis, all or part of loans for an amount to be actually expended to acquire, construct, furnish, equip, make necessary improvement to or purchase land for any agricultural plant made by any lender to any person approved by the commission, provided that whenever the commission guarantees the payment of such loan, the commission shall make and enter into a guarantee agreement with the lender and the borrower setting forth the terms and conditions under which the commission is obligated and the extent to which repayment of the loan is guaranteed and secured. Each loan which is guaranteed by the commission shall require as a minimum the execution of a note or notes secured by a first mortgage on property. Whenever the commission enters into such a loan guarantee agreement, the commission may impose and collect an origination fee not to exceed 1 percent of the amount of the loan guaranteed.

D. The market commission may guarantee, on an interim or long-term basis, all or part of loans for an amount to be actually expended for operating capital, market development and product inventories made by any lender to any person approved by the commission, provided that whenever the commission guarantees the payment of such loan, the commission shall make and enter into a guarantee agreement with the lender and the borrower setting forth the terms and conditions under which the commission is obligated and the extent to which repayment of the loan is guaranteed and secured. Each loan which is guaranteed by the commission shall require as a minimum the execution by the borrower of a note or notes secured by a first mortgage on property, including product inventories and accounts receivable from the sale of inventories, under such terms and conditions together with such additional endorsements or other security as may be required by the commission.