§ 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.  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.