Oklahoma § 62-88.6 - Funding of approved loans

§ 62-88.6. Funding of approved loans

A. Applications approved by the Board shall be subject to

available funds, and if a loan or loan package is not funded for

Oklahoma Statutes - Title 62. Public Finance

such reason, it will be funded in the chronological order of its

approval.

B. The State Treasurer shall reject any small business linked

deposit loan package if the participant requesting such loan is not

in good standing with the Oklahoma Tax Commission and the Oklahoma

Employment Security Commission. Notwithstanding any provision of

law to the contrary, said agencies shall provide the State Treasurer

with such information as to the standing of each participant loan

applicant within ten (10) days of the request for the information.

C. Upon acceptance of the small business linked deposit loan

package or any portion thereof, the State Treasurer shall notify the

Board, the lending institution and the borrower. Upon acceptance

the State Treasurer may place certificates of deposit with the

eligible lending institution at up to three percent (3%) below the

comparable Treasury Bill rate, as determined and calculated by the

State Treasurer. When necessary, the State Treasurer may place

certificates of deposit prior to acceptance of a small business

linked deposit loan package.

D. Upon the placement of a small business linked deposit with

an eligible lending institution, the institution shall fund the loan

to each approved eligible participant listed in the small business

linked deposit loan package in accordance with the small business

linked deposit agreement between the institution and the State

Treasurer. The percentage rate of the loan shall be reduced by at

least the same number of percentage points that the certificate of

deposit was reduced upon placement. A certification of compliance

with this subsection in the form and manner as prescribed by the

State Treasurer shall be required of the eligible lending

institution. Deposits placed by the State Treasurer shall be

secured by collateralization as determined by and in accordance with

the State Treasurer's policy for securing state deposits. The

objective of said policy shall be to adequately secure the

collateralization of deposits without requiring unnecessary overcollateralization by the institution.

Added by Laws 1988, c. 183, § 6, eff. July 1, 1988. Amended by Laws

1990, c. 321, § 9, emerg. eff. May 30, 1990; Laws 1991, c. 334, § 5,

eff. Sept. 1, 1991.