Effective 28 Aug 1981

348.100. Loans, authority may purchase or participate, requirements. — The authority may purchase agricultural development loans, small business development loans, and small business pollution control facilities loans originated by lenders, or may participate with lenders in making such loans, and may enter into commitments to lenders for such purchase or participation, provided that, as to each loan:

(1) The applicant cannot, in the authority's judgment, obtain a loan on equivalent terms without such purchase or participation;

(2) The yield to the authority on the loan or on its participation therein will, in its judgment, be sufficient to pay all costs and expenses incurred by the authority in making or participating in the loan and issuing bonds or notes to finance it, including any discount, principal, interest, redemption premium, reserves, and property or loan insurance and servicing cost not paid by the borrower or the lender;

(3) The payment of principal and interest with respect to the loans is guaranteed to the amount of the authority's participation therein, or is insured under a policy providing for payment of a percentage of any loss at least equal to that percentage by which the original principal amount of the loan exceeds seventy-five percent of the appraised value of the property, subject to a first mortgage or perfected security interest granted for the security of the loans; and

(4) The lender provides all documentation required to demonstrate that the applicant is an eligible borrower and that all conditions for insurance or guaranty of the loan have been fulfilled, and agrees to service the loan or provide for its servicing by another lender, in accordance with rules of the authority.

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(L. 1981 H.B. 681 § 21)