1. A. The applicant must provide all required information at least 20 working days prior to the meeting at which the application will be considered. The commission shall not consider any incomplete application.
2. B. The applicant or its representative must appear in person at the meeting at which the application will be considered, in order to provide any additional information which may be required by the commission.
3. C. Approval of the loan or loan guaranty must not result in encumbrance(s) on the property offered as security in excess of 75 percent of the aggregate appraised value of all property offered as security. Moreover, no loan or loan guaranty may be approved unless the security therefore is at a minimum a first mortgage on all property offered as security. The commission may reject any appraisal which it feels would result in a violation of this limitation.
4. D. The period for which the loan or loan guaranty is requested must not exceed five years, provided, however, that the market commission may, under conditions hereinafter set forth, extend the period of the loan for an additional period not to exceed a total of 20 years from the date of the original loan.
5. E. A market assessment and/or feasibility study conducted or secured by the applicant or the market commission staff must support the advisability of the loan or loan guaranty.
6. F. The loan or loan guaranty application must satisfy all legal requirements, as evidenced by the written approval of the department's attorney.
7. G. In the event of extreme urgency affecting the continuation of existing jobs or the loss of a business opportunity to create new jobs, the market commission may either in open session or by telephone poll suspend the full requirements of the loan or loan guaranty application information and require the immediate submission of information sufficient to demonstrate the urgency, the advisability of the loan or loan guaranty and the adequacy of the security to be provided for the loan. In this event, however, the applicant shall provide the full information within such time as the commission fixes in conjunction with the granting of the suspension. Such suspension may be granted only when the amount of the loan or loan guaranty does not exceed the sum of $100,000 and the loan or loan guaranty is fully secured by first mortgages on immovables and personal liability of sufficient solvent individuals. The granting of and justification for a suspension, as provided herein, shall be documented and made a matter of permanent public record.
8. H. In the event the land upon which a new agricultural plant will be constructed or an existing plant which will be expanded is already subject to a lien, mortgage or encumbrance which the applicant proposes to pay off with loan proceeds from the market commission or any other lender, such application can be approved only if the amount of the loan does not exceed 75 percent of the value of all security to be provided, the amount of the loan left after satisfying the encumbrances will finance the construction or improvements proposed and the applicant does not realize any cash from the loan except for operating capital, market development or product inventories. If the amount of the lien, mortgage or encumbrance to be satisfied out of the loan proceeds is disproportionate to the amount to be used for new construction, improvement or expansion, then the commission may reject the application on the grounds that it is a refinancing and is prohibited by the law creating the program. The commission considers disproportionate to be an amount in excess of 25 percent of the loan amount sought in the application.

Authority Note

AUTHORITY NOTE: Promulgated in accordance with R.S. 3:450.3 and R.S. 3:450.5.

Historical Note

HISTORICAL NOTE: Promulgated by the Department of Agriculture and Forestry, Market Commission, LR 13:79 (February 1987).