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House Journal: Page 1550: Thursday, April 13, 1995

 7     Sec. ___.  Section 12.35, Code 1995, is amended to
 8   read as follows:
 9     12.35  APPLICATION.
10     1.  An eligible lending institution that desires to
11   receive a linked investment shall enter into an
12   agreement with the treasurer of state, which shall
13   include requirements necessary to carry out this
14   division.
15     1. 2.  An eligible lending institution that
desires
16   to receive a linked investment shall accept and review
17   applications for loans from eligible borrowers.  The
18   lending institution shall apply all usual lending
19   standards to determine the credit worthiness of each
20   eligible borrower and shall determine whether the
21   applicant is an eligible borrower.  Loan
applications
22   shall be for the purchase or lease of land, machinery,
23   equipment, seed, fertilizer, direct marketing
24   facilities, or new or expanding processing facilities
25   for horticultural crops or nontraditional crops.  The
26   maximum size of a loan is two hundred thousand dollars
27   per borrower for a production loan and five hundred
28   thousand dollars for processing or marketing
29   facilities.
30     2. 3.  The eligible financial institution shall
31   forward to the state treasurer of state a linked
32   investment loan package in the form and manner as
33   prescribed by the treasurer of state.  The package
34   shall include information required by the treasurer of
35   state, including but not limited to the amount of the
36   loan requested and the purpose of the loan.  The
37   institution shall certify that the applicant is an
38   eligible borrower and shall certify the present
39   borrowing rate applicable to the specific eligible
40   borrower.
41     Sec. ___.  Section 12.36, Code 1995, is amended to
42   read as follows:
43     12.36  ACTIONS BY TREASURER -- AGREEMENT.
44     1.  The treasurer of state shall accept or reject a
45   linked investment loan package or any portion of the
46   package based on the type or terms of the loan
47   involved, the availability of state funds, or the
48   compliance of the eligible borrower or eligible
49   lending institution.
50     2.  Upon acceptance of the linked investment loan

Page 3

 1   package or any portion of the package, the treasurer
 2   of state shall place certificates of deposit with the
 3   eligible lending institution at a rate not more than
 4   three two percent below the current market rate.
 5   After July 1, 1992, the The treasurer of state shall
 6   not place a certificate of deposit with an eligible
 7   lending institution pursuant to this division, unless
 8   the certificate of deposit earns a rate of interest of
 9   at least two percent.  When necessary, the treasurer
10   may place certificates of deposit prior to acceptance

Iowa General Assembly

Index: House Journal (76th General Assembly: Session 1)

© 1995 Cornell College and League of Women Voters of Iowa

Comments? hjourn@legis.iowa.gov.

Last update: Sun Jan 14 21:05:02 CST 1996
URL: /DOCS/GA/76GA/Session.1/HJournal/01500/01550.html
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