Kan. Admin. Regs. § 110-40-5

Current through Register Vol. 43, No. 49, December 5, 2024

Section 110-40-5 - General terms and conditions of financial assistance

(a) Permissible use of financial assistance. Guaranteed loan funds may be used by the exporter to satisfy credit needs with respect to Kansas export transactions. Eligible credit needs include the costs and expenses related to the acquisition or production, financing, and shipment of the goods and services.

(b) Participation. In providing financial assistance, participation from other private and governmental sources, including the United States small business administration, eximbank, the foreign credit insurance association, and private insurers may be sought by the department.

(c) Maximum amount of financial assistance. The department's net exposure for financial assistance to a Kansas export transaction shall not, at any one time, exceed 50 percent of the export loan guarantee fund balance.

(d) Security. Loans may require collateralization of a type, amount, and value which, considered with the other criteria described in K.A.R. 110-40-6, affords reasonable assurance of repay-ment.

(e) Reporting requirements.

(1) The lender shall report in writing to the director's office as provided in the guarantee agreement and as provided in K.A.R. 110-40-7, loan administration and servicing.

(2) The exporter shall report to the director's office immediately upon making shipment of the goods and shall provide copies of documents evidencing shipment according to the terms of trade. In addition the exporter shall report immediately the receipt of payment of the Kansas export transaction receivable. If requested by the director's office, the exporter shall submit other reports or documentation reasonably related to an assessment of the exporter's compliance with the Kansas export finance act.

Kan. Admin. Regs. § 110-40-5

Authorized by K.S.A. 74-5071, K.S.A. 74-5072, as amended by 1994 HB 2971; implementing K.S.A 74-5071, 74-5072 and K.S.A. 74-5074; effective Oct. 8, 1990; amended Sept. 19, 1994.