La. Admin. Code tit. 7 § V-1515

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

Section V-1515 - Disbursement of Loan Proceeds to the Borrower

A. Prior to disbursement of loan funds all legal instruments must be examined and approved by the department attorney.

B. On the date of disbursement of loan proceeds the borrower must execute a note secured by a chattel mortgage or crop lien payable to the market commission setting forth the terms and conditions under which the loan will be repaid.

C. On the date of disbursement of loan proceeds the borrower must execute a chattel mortgage or crop lien payable to the market commission, which instrument shall contain, but not be limited to, the following:

1. the amount loaned;

2. the rate of interest;

3. the repayment schedule;

4. description of items offered as security;

5. provision for executory process;

6. provision for payment of all costs of foreclosure, including attorney's fees at 25 percent of the principal balance and interest accrued at foreclosure.

D. The commissioner of agriculture or his designee, as official representative of the State Market Commission, shall execute all necessary legal instruments at the time of the disbursement of loan proceeds.

E. The disbursement of loan proceeds shall be by check and shall be deposited into the bank account number on behalf of the borrower as designated on the loan application.

F. No loan for the purchase of livestock shall be funded until issuance of a health certificate from a licensed veterinarian certifying that the livestock to be purchased is sound, healthy, and free from all diseases.

La. Admin. Code tit. 7, § V-1515

Promulgated by the Department of Agriculture, Market Commission, LR 8:270 (June 1982).

AUTHORITY NOTE: Promulgated in accordance with R.S. 3:548 and R.S. 3:543.