348.100. Loans, authority may purchase or participate, requirements. - Missouri Statutes

Loans, authority may purchase or participate, requirements.

348.100. The authority may purchase agricultural developmentloans, small business development loans, and small businesspollution control facilities loans originated by lenders, or mayparticipate with lenders in making such loans, and may enter intocommitments 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 orparticipation;

(2) The yield to the authority on the loan or on itsparticipation therein will, in its judgment, be sufficient to payall costs and expenses incurred by the authority in making orparticipating in the loan and issuing bonds or notes to financeit, including any discount, principal, interest, redemptionpremium, reserves, and property or loan insurance and servicingcost not paid by the borrower or the lender;

(3) The payment of principal and interest with respect tothe loans is guaranteed to the amount of the authority'sparticipation therein, or is insured under a policy providing forpayment of a percentage of any loss at least equal to thatpercentage by which the original principal amount of the loanexceeds seventy-five percent of the appraised value of theproperty, subject to a first mortgage or perfected securityinterest granted for the security of the loans; and

(4) The lender provides all documentation required todemonstrate that the applicant is an eligible borrower and thatall conditions for insurance or guaranty of the loan have beenfulfilled, and agrees to service the loan or provide for itsservicing by another lender, in accordance with rules of theauthority.

(L. 1981 H.B. 681 § 21)