La. Admin. Code tit. 7 § III-133

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

Section III-133 - The Credit Provider

A. The following financial institutions shall qualify as credit providers and shall meet the following conditions.

1. A savings and loan association insured by FSLIC may act as credit provider and shall deliver a letter of credit and in the event such savings and loan association does not have a long-term unsecured debt rating by Standard and Poor's Corporation at least equal to the initial rating on the bonds, such letter of credit shall be collateralized in accordance with a Collateral Pledge Agreement (FSLIC) which shall be delivered to the Trustee.

2. A national bank may act as a credit provider and if it does not have a long-term credit rating at least equal to the initial rating on the bonds, shall enter into a repurchase obligation which shall be delivered to the trustee.

3. Any national bank which has an unsecured long-term debt rating by Standard and Poor's Corporation at least equal to the initial rating on the bonds may act as a credit provider and shall deliver an unsecured letter of credit.

4. A state chartered bank insured by FDIC may act as a credit provider and shall deliver a letter of credit, and in the event such state-chartered bank does not have a long-term unsecured debt rating by Standard and Poor's Corporation at least equal to the initial rating on the bonds, such letter of credit shall be collateralized in accordance with a Collateral Pledge Agreement (FDIC) which shall be delivered to the trustee.

5. Any other legal entity may act as a credit provider which has a long-term unsecured debt rating (or, in the case of an insurance company, a claims-paying ability rating) by Standard and Poor's Corporation at least equal to the initial rating on the bonds and may only deliver a guaranty.

La. Admin. Code tit. 7, § III-133

Promulgated by the Department of Agriculture and Forestry, Agricultural Finance Authority, LR 17:166 (February 1991).

AUTHORITY NOTE: Promulgated in accordance with R.S. 3:266(4).