House Journal: Page 2234: Tuesday, June 3, 2003
Page 23
1 credit guarantee advisory board, shall adopt a loan or
2 credit guarantee application procedure for a financial
3 institution on behalf of a qualified business or
4 targeted industry business.
5 6. Upon approval of a loan or credit guarantee,
6 the department shall enter into a loan or credit
7 guarantee agreement with the participating financial
8 institution. The agreement shall specify all of the
9 following:
10 a. The fee to be charged to the financial
11 institution.
12 b. The evidence of debt assurance of, and security
13 for, the loan or credit guarantee.
14 c. A loan or credit guarantee that does not exceed
15 fifteen years.
16 d. Any other terms and conditions considered
17 necessary or desirable by the department.
18 7. The department, with the advice of the loan and
19 credit guarantee advisory board, may adopt loan and
20 credit guarantee application procedures that allow a
21 qualified business or targeted industry business to
22 apply directly to the department for a preliminary
23 guarantee commitment. A preliminary guarantee
24 commitment may be issued by the department subject to
25 the qualified business or targeted industry business
26 securing a commitment for financing from a financial
27 institution. The application procedures shall specify
28 the process by which a financial institution may
29 obtain a final loan and credit guarantee.
30 Sec. . NEW SECTION. 15E.225 TERMS - FEES.
31 1. When entering into a loan or credit guarantee
32 agreement, the department, with the advice of the loan
33 and credit guarantee advisory board, shall establish
34 fees and other terms for participation in the program
35 by qualified businesses and targeted industry
36 businesses.
37 2. The department, with due regard for the
38 possibility of losses and administrative costs and
39 with the advice of the loan and credit guarantee
40 advisory board, shall set fees and other terms at
41 levels sufficient to assure that the program is self-
42 financing.
43 3. For a preliminary guarantee commitment, the
44 department may charge a qualified business or targeted
45 industry business a preliminary guarantee commitment
46 fee. The application fee shall be in addition to any
47 other fees charged by the department under this
48 section and shall not exceed one thousand dollars for
49 an application.
50 Sec. . NEW SECTION. 15E.226 LOAN AND CREDIT
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