The applicant must submit an application for PLP status to the Authority to include:

1. (1) a statement requesting PLP status for either, or both, the Young Farmer Loan Guarantee Program and the Farm and Ranch Finance Program.
2. (2) a summary of the applicant's capability to adequately approve, including the approval process, and service the requested commitment(s);
3. (3) evidence of credit examination and supervision of applicable state and/or federal regulatory agencies to include a certificate of good standing from these agencies, or if the regulatory agency does not issue certificates of good standing, a letter from the applicant's president or other appropriate individual that the lender is in good standing with the appropriate regulatory agency;
4. (4) a statement of ability to properly service and discharge its loan making and servicing responsibilities;
5. (5) a sample of the applicant's credit management system, which contains policies and underwriting standards; loan and security documentation; credit file management documentation; collateral management system documentation; and portfolio management system;
6. (6) a compilation of the historical loan loss ratio for loans comparable to the two programs under these rules over the last five years, or a copy of the call report completed by the applicant and filed with their regulatory authority for a comparable period;
7. (7) a copy or sample of an approved loan request including application and underwriting information. Should this be a copy of an approved application, please delete names, addresses, and other confidential information;
8. (8) a copy of all loan documents, which are normally used by the Preferred Lender in closing an approved loan request;
9. (9) evidence of other Preferred Lender Program status designations, if any;
10. (10) a statement of any potential conflict of interest of the borrower with any employee of the Texas Department of Agriculture or the board of the Texas Agricultural Finance Authority; and
11. (11) an agreement that to maintain its PLP status, the applicant must submit at least four (4) loan requests each fiscal year, which can be a combination of the two programs.

Source Note:The provisions of this §28.83 adopted to be effective July 8, 2001, 26 TexReg 4998; transferred effective October 1, 2007, as published in the Texas Register September 28, 2007, 32 TexReg 6793.