1. A. The market commission shall not approve any loan or loan guaranty for any applicant who fails to submit all required information.
2. B. The market commission shall not approve any loan or loan guaranty for any person which is not domiciled in Louisiana.
3. C. The market commission shall not approve any loan or loan guaranty in the amount exceeding 75 percent of the appraised value of all property offered as security for the loan or any loan or loan guaranty not secured by a first mortgage on the property offered as security.
4. D. The market commission shall not approve any loan or loan guaranty for any person with any pending or outstanding charge or liability relating to failure or inability to pay promissory notes or any other evidence of indebtedness.
5. E. The market commission shall not approve any loan or loan guaranty for any person, which has presently pending, at the federal, state or local level, any proceeding concerning the denial or revocation of a necessary license or permit.
6. F. The market commission shall not approve any loan or loan guaranty the proceeds of which are to be, or may be, used for the consolidation of existing, previous financial obligations.
7. G. The market commission shall not approve any loan or combination of loans to a single person, which is in excess of 50 percent of the total funds for loans or guaranties under this program.

8. H. The market commission shall not approve any loan or loan guaranty for any facility constructed or to be constructed on leased land except as follows:

   1. 1. the lease is for a term extending at least five years beyond the period of the loan;
   2. 2. the market commission receives an assignment on the lease and the right of reassignment;
   3. 3. if the loan repayment schedule includes a balloon note, the market commission, at its discretion, may require a lease running for 20 years from the date of the approval of the loan;
   4. 4. a waiver of landlord's lien and privilege on movables must be provided.
9. I. The market commission shall not make any loan or loan guaranty on immovable equipment, building improvements and/or additions unless the property on which it is located is secured by a first mortgage to the commission or other lender.
10. J. The terms or conditions imposed and made part of any loan or loan guaranty authorized by vote of the market commission shall not be amended or altered by any member of the commission or employee of the Department of Agriculture and Forestry except by subsequent vote of approval by the commission in open session with full explanation for such action.
11. K. The market commission shall not subordinate its interests if such subordination will result in any risk to its security position.

Authority Note

AUTHORITY NOTE: Promulgated in accordance with R.S. 3:450.2, 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 13:82 (February 1987).