Oklahoma § 62-91.6 - Loan packages - Review of applications by lending

§ 62-91.6. Loan packages - Review of applications by lending

institutions - Loan restrictions - Review of loan packages.

A. The State Treasurer shall provide rural housing linked

deposit loan packages upon request to the lending institutions

eligible for participation in the Oklahoma Rural and Affordable

Housing Linked Deposit Program.

B. The rural housing linked deposit loan package shall be

completed by the developer before being forwarded to the lending

institution for consideration.

C. 1. An eligible lending institution that desires to receive

a rural housing linked deposit shall accept and review applications

for loans from eligible rural housing developers. The lending

institution shall apply all usual lending standards to determine the

creditworthiness of each eligible developer. No single linked

deposit for an Oklahoma rural housing linked deposit loan shall

exceed Two Million Dollars ($2,000,000.00).

2. Only one linked deposit loan shall be made and be

outstanding at any one time to any developer. However, the linked

deposit loan may be renewed subject to the time limitations for

participation set forth in subsection C of Section 91.7 of this

title.

3. No loan shall be made to any officer or director of the

lending institution making the loan.

4. No loan shall be made to any employee of the State

Treasurer’s office or to any officer, director or employee of the

certifying agency, or to any entity in which such officer, director

or employee maintains a controlling interest, or to an immediate

family member of the employees, officers, or directors of the State

Treasurer or the certifying agency.

5. No loan shall be made prior to July 1, 2004, and no deposit

of funds shall be made in connection with a rural housing linked

deposit loan prior to July 1, 2004.

D. An eligible rural housing developer shall certify on its

loan application that the reduced rate loan will be used exclusively

for the purposes outlined in Section 91.2 of this title.

E. In considering which eligible rural housing developers to

include in the rural housing linked deposit loan package for reduced

rate loans, the eligible lending institution shall give priority to

the economic needs of the area in which the development to be

financed is located and other factors the eligible lending

institution considers appropriate to determine the relative

financial need of the developer.

F. 1. The eligible lending institution shall forward to the

certifying agency a rural housing linked deposit loan package, in

the form and manner prescribed and approved by the State Treasurer.

Oklahoma Statutes - Title 62. Public Finance

The package shall include information regarding the amount of the

loan requested by each eligible developer and any other information

regarding each development the State Treasurer requires. The

institution shall, for each development, certify the present

borrowing rate applicable to similar borrowers for similar projects,

as well as the rate that would be charged to the applicant but for

participation in the linked deposit program.

2. The institution and applicant shall certify that each

applicant is an eligible rural housing developer.

3. Whoever knowingly makes a false statement concerning a

linked deposit loan application shall be prohibited from

participating in the linked deposit loan program.

G. The certifying agency shall examine the completed rural

housing linked deposit loan package for possible certification. The

certifying agency may charge an applicant a reasonable filing fee.

A uniform fee may be established to cover its administrative costs

of review. Any filing fee must be approved by the State Treasurer.

The certifying agency shall review the linked deposit loan package

to determine if the package satisfies the requirements of this act

and guidelines adopted pursuant to this act. The certifying agency

shall make a recommendation concerning the package within thirty

(30) business days. The certifying agency shall forward the package

to the State Treasurer with a written recommendation of approval or

rejection. If the certifying agency recommends rejection, the

written recommendation shall include reasons for the rejection. The

certifying agency shall forward a copy of its rejection notice to

the lending institution and the borrower. The State Treasurer shall

keep a chronological list of applications forwarded by the

certifying agency for approval or rejection. Upon receipt of a

completed rural housing linked deposit loan package, the State

Treasurer may review or audit the information contained in the

completed rural housing linked deposit loan package.

Added by Laws 2002, c. 287, § 6, eff. July 1, 2002. Amended by Laws

2003, c. 224, § 16, eff. July 1, 2003; Laws 2005, c. 124, § 6, eff.

Nov. 1, 2005.