348.521. Authority to issue certificates of guaranty--eligible lender defined--fee authorized--limit on outstanding guaranteed loans.

MISSOURI STATUTES AND CODES

348.521. Authority to issue certificates of guaranty--eligible lender defined--fee authorized--limit on outstanding guaranteed loans.

Authority to issue certificates of guaranty--eligible lenderdefined--fee authorized--limit on outstanding guaranteed loans.

348.521. 1. The authority may issue certificates of guarantycovering a first loss guarantee up to but not more than fifty percent ofthe loan on a declining principal basis for loans to individuals executinga note or other evidence of a loan made for livestock feed and crop input,but not to exceed the amount of forty thousand dollars for any oneindividual and to pay from the livestock feed and crop input loan guaranteefund to an eligible lender up to fifty percent of the amount on a decliningprincipal basis of any loss on any guaranteed loan made under theprovisions of sections 348.515 to 348.533, in the event of default on theloan. Upon payment of the loan, the authority shall be subrogated to allthe rights of the eligible lender.

2. As used in sections 348.515 to 348.533, the term "eligible lender"means those entities defined as lenders under subdivision (8) of section348.015.

3. The authority shall charge for each guaranteed loan a one-timeparticipation fee of fifty dollars which shall be collected by the lenderat the time of closing and paid to the authority. In addition, theauthority may charge a special loan guarantee fee of up to one percent perannum of the outstanding principal which shall be collected from theborrower by the lender and paid to the authority. Amounts so collectedshall be deposited in the livestock feed and crop input loan program fundand used, upon appropriation, to pay the costs of administering theprogram.

4. All moneys paid to satisfy a defaulted guaranteed loan shall onlybe paid out of the livestock feed and crop input loan guarantee fundestablished by sections 348.515 to 348.533.

5. The total outstanding guaranteed loans shall at no time exceed anamount which, according to sound actuarial judgment, would allow immediateredemption of twenty percent of the outstanding loans guaranteed by thefund at any one time.