Current through Register Vol. 50, No. 9, September 20, 2024
A. Prior to
the setting of a date for the loan closing, the applicant must submit the
following:
1. satisfactory proof that the
agricultural plant, if new construction, improvement to or expansion of an
existing plant has been completed in accordance with the plans submitted to the
market commission for its consideration of the loan or loan guarantee
application;
2. a copy of the note
and the mortgages and/or other security instruments to be executed at the
closing for examination and approval by the department's attorney;
3. a copy of a plat survey by a registered
surveyor;
4. evidence of adequate
title insurance;
5. carry and
provide evidence of the following insurance coverage:
a. public liability insurance of $500,000,
naming the market commission as additional insured. The applicant must also
provide a certificate evidencing such insurance, which certificate must provide
that the insurance cannot be canceled without 30 days prior notice to the
market commission;
b. fire and
extended coverage and vandalism insurance to the full extent of the amount
loaned or guaranteed by the market commission, naming the commission as a loss
payee, the total amount of the insurance to meet the 80 percent co-insurance
requirements. The applicant must also provide a certificate evidencing such
insurance, which certificate must provide that the insurance cannot be canceled
without 30 days prior notice to the commission.
6. Satisfactory proof that all laborers and
material men have been fully paid.
7. All legal instruments must be examined and
approved by the department's attorney.
B. On or before the loan closing date, the
applicant must:
1. provide a title opinion by
a title attorney approved by the market commission, which title opinion shall
provide evidence of clear title and shall include, but not be limited to, the
following:
a. a property
description;
b. identification of
the property owner, with pertinent recordation data;
c. satisfactory evidence that all taxes due
on the property have been paid;
d.
a full and complete list of all mortgages, liens, encumbrances and/or
servitudes on the property; and
e.
such other information as may be necessary for a full recital of the facts
surrounding such property;
2. provide a mortgage certificate from the
clerk of court for the parish in which the property is located;
3. in the case of market commission loans
paid directly to the borrower and/or the source of interim financing, the
borrower must execute a note secured by a first mortgage payable to the
commission setting forth in full the terms and conditions under which the loan
will be repaid, and containing such additional endorsements or other security
as may be required by the commission;
4. in the case of market commission loans
paid directly to the borrower and/or the source of interim financing, the
borrower must execute a first mortgage payable to the commission, which
mortgage shall contain, but not necessarily be limited to, the following:
a. the amount loaned;
b. the rate of interest;
c. the repayment schedule;
d. description and listing of all property to
be included in the security;
e.
provision for executory process;
f.
provision for payment of all costs of foreclosure, including attorney's fees at
25 percent of the principal balance and interest accrued at foreclosure;
and
g. authorization for the
addition to the principal balance the amount of any taxes and/or insurance
premiums paid by the commission, upon failure of the mortgagee to pay such
amounts when due, to protect the security position of the commission.
C. In the case of all
market commission loans paid directly to the borrower, the individual borrower
and/or all partners of a partnership may be required personally to endorse the
note secured by the first mortgage or shall provide other security at the
commission's discretion.
D. In the
case of all market commission loans paid directly to the borrower, all members
of the boards of directors, by whatever name known, of the corporation or
cooperative association may be required personally to endorse the note secured
by the first mortgage or shall provide other security at the commission's
discretion.
E. In the case of a
loan guaranty, the borrower must provide for the market commission to file and
record a copy of the note and the mortgage payable to the lender and any other
data deemed necessary by the commission or commission staff.
F. The market commission shall authorize the
setting of a loan closing date and the disbursement of loan proceeds upon
presentation of all information required in
§313 A-E.
G. The commissioner of agriculture and
forestry, or his designee, as official representative of the market commission,
shall execute all necessary legal instruments at the loan closing.
H. The loan guarantee agreement shall be
executed by the borrower, the lender and the commissioner of agriculture and
forestry, or his designee, as the official representative of the market
commission.
AUTHORITY NOTE:
Promulgated in accordance with R.S.
3:450.3.
