La. Admin. Code tit. 19, § VII-7209 - Agreement
A. The agreement
entered into by the participating financial institution and the LEDC shall
provide for:
1. a loss reserve account by
LEDC, owned by LEDC and for the benefit of the participating financial
institutions;
2. the creation of a
loss reserve account by the participating financial institution with
contributions from the participating financial institution and the
borrower;
3. the liability of LEDC
to the participating financial institution is limited to the balance of the
contributed amount in the LEDC loss reserve account attributed to enrolled
qualified loans for the participating financial institution;
4. the terms and conditions of qualified
loans to be determined solely by agreement of the lender and
borrower;
5. the enrollment of
qualified loans in the program ;
6.
the deposit of funds by the borrower and the lender into the loss reserve
account when the lender makes a qualified loan to the borrower;
7. the deposit of funds by LEDC into its loss
reserve account set up in LEDC for its match;
8. a deposit of $50,000 seed by LEDC into the
LEDC loss reserve account for each participating financial institution which
will be reimburse as loans are enrolled;
9. a claims process for reimbursement of
losses that have been incurred from defaults on qualified loans;
10. payment by the LEDC from its loss reserve
account to a lender to reimburse it for any loss;
11. disposition of any recoveries from a
borrower made by the lender subsequent to being reimbursed for any loss by
LEDC;
12. conditions for
subrogation of LEDC, at LEDC's request, to the rights of the lender in
collateral, personal guarantees, and all other forms of security for the
qualified loan;
13. conditions for
decreases by LEDC of excess balances in the LEDC loss reserve
account;
14. termination by LEDC of
the obligation to enroll qualified loans under the program ;
15. conditions for termination of the
agreement, and disposition by the lender and LEDC of any remaining balance in
the loss reserve accounts;
16.
withdrawal by a lender from the program , and disposition by the lender and LEDC
of any remaining balance in the loss reserve accounts;
17. periodic reporting to LEDC by the lender
as required;
18. inspection by LEDC
of the pertinent files of the lender relating to enrolled loans;
19. transmittal to LEDC by the applicable
state or federal regulatory body of the lender of any public information
directly relating to the lenders participation in program ;
20. such other terms and conditions as LEDC
may require.
Notes
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