1. A. A lender shall enroll a qualified loan under the program:

   1. 1. by notifying LEDC in writing, on a form prescribed by LEDC and within 10 days after the qualified loan is made, that it is enrolling a qualified loan. for purposes of this Section, the date on which the lender makes a qualified loan is the earlier of the date on which the lender first disburses proceeds of the qualified loan to the borrower, or the date on which the loan documents have been executed and the lender has obligated itself to disburse proceeds of the loan; and
   2. 2. by transmitting to LEDC a deposit receipt of the contributions collected from the lender and the borrower in connection with the qualified loan.
2. B. LEDC shall, upon receipt of documentation from the lender, enroll the qualified loan if LEDC is satisfied that the qualified loan is eligible. LEDC shall notify the lender of enrollment within 10 business days from receipt of documentation, in such form as will be determined by LEDC.
3. C. When the requirements of a qualified loan are met, LEDC shall also transfer funds to the LEDC loss reserve account an amount equal to the banks contributed percentage of the enrolled loan amount but not to exceed $105,000 for a single borrower and not to exceed 10 percent of a lenders total enrolled loans.
4. D. Prior to making a loan a lender may request that LEDC certify that the proposed loan is an eligible loan. The lender must submit all information required in Subsection A above with such request. LEDC will certify within 10 days of receipt of the request that the loan is eligible or is not eligible. Such certification shall be binding for 30 days if no change in a material representation has occurred.

Authority Note

AUTHORITY NOTE: Promulgated in accordance with R.S. 51:2312 (A)(7), (B)(1) and (B)(3).

Historical Note

HISTORICAL NOTE: Promulgated by the Department of Economic Development, Louisiana Economic Development Corporation, LR 26:2249 (October 2000).