La. Admin. Code tit. 7 § III-121

Current through Register Vol. 50, No. 11, November 20, 2024

Section III-121 - Fees Required

A. Application Fee

1. Each borrower must pay an application fee to cover LAFA's cost of processing the loan application. The application fee is non-refundable.

2. The application fee shall be paid by the borrower to the lender and transmitted to LAFA by the lender when the offer is submitted.

3. The amount of the application fee is determined by the total principal amount of the loan requested, as follows.

a. Loans of $25,000 or less	$ 50
b. Loans of $25,001 to $200,000	$100
c. Loans of more than $200,001	$200

B. Fees Imposed by Lender

1. Commitment Fee

a. The lender may impose a borrower commitment fee in an amount not to exceed 2 1/2 percent of the original principal amount of the loan which the lender intends to originate to cover the cost of issuing the bond.

b. The commitment fee is paid by the borrower to the lender on or before the loan closing.

c. The commitment fee will be refunded by the lender as follows:

i. in whole if the bonds are not issued by LAFA within one year after acceptance of an offer;

ii. in whole if the loan is not closed during the origination period specified in the offer and accepted by LAFA, if the failure to close the loan is due to any action or inaction by the lender for which the borrower is not responsible;

iii. in whole if the lender cannot finance the loan without exceeding the lender's aggregate authorization for sale and repurchase of loans under the program; and

iv. in whole when the loan is funded by the lender.

2. Origination Fee

a. The lender may impose an origination fee to defray expenses incurred by the lender in processing, originating, and disbursing the proceeds of the loan granted to the borrower in an amount not to exceed 1 percent of the original principal amount of the loan.

b. The origination fee is paid by the borrower to the lender at the loan closing.

3. The lender may impose lender's reasonable and customary charges for insurance premiums, surveys, and other similar closing costs.

C. Fees Imposed by LAFA

1. Cost of Issue Fee

a. LAFA will impose a cost of issue fee to defray expenses incurred in issuance of the bond in an amount not to exceed 2 1/2 percent of the original principal amount of the loan.

b. The cost of issue fee is paid by the borrower to LAFA in the form of a discount of 2 1/2 percent from the original principal amount of the loan when the loan is purchased by LAFA from the lender.

2. Program Participation Fee

a. LAFA shall charge a program participation fee in an amount not to exceed 1/8 of 1 percent per annum on the outstanding principal amount of the loan.

b. The program participation fee shall be paid by the borrower to the lender on each required loan payment date and transmitted by the lender to the trustee to be used to cover the administrative costs of the trustee and LAFA.

La. Admin. Code tit. 7, § III-121

Promulgated by the Department of Agriculture, Agricultural Finance Authority, LR 10:870 (November 1984).

AUTHORITY NOTE: Promulgated in accordance with R.S. 3:266, R.S. 3:270 and Section 103(b)(6) of the Internal Revenue Code of 1954, as amended.