La. Admin. Code tit. 7 § V-121

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

Section V-121 - Balloon Notes and Rescheduling of Payments

A. The market commission shall not approve a final balloon note payment in excess of 75 percent of the total amount of the original loan.

B. If the State Market Commission votes in open session to approve rescheduling of a balloon note, such re-scheduled payments shall be financed at the interest rate prevailing at the time of renewal.

C. No payment schedule shall be extended to more than a total of 15 years from date of the final loan disbursement to date of the final payment under the loan.

D. Any balloon note shall be personally endorsed by the individual, by all partners if the note is for a partnership, and/or by all members of the board of directors if the note is for a cooperative association or a corporation.

E. Any request for a renewal of a balloon payment shall be accompanied by:

1. a statement of current financial condition, including profit and loss statement and balance sheet for the most recent full year of operation, prepared in accordance with generally accepted accounting principles;

2. names and addresses of all stockholders, and the number of shares held by each;

3. detailed explanation of the reason for the requested renewal.

F. Regularly scheduled payments of principal and/or interest shall not be deferred for more than three months; such unpaid payments shall not be added to an existing balloon note if such increase will result in a balloon payment amounting to more than 75 percent of the original amount of the loan.

La. Admin. Code tit. 7, § V-121

Promulgated by the Department of Agriculture, Market Commission, LR 6:256 (June 1980).

AUTHORITY NOTE: Promulgated in accordance with R.S. 3:407 and R.S. 3:404.