2-3704. Loans; application; limitations; use; approval or rejection.
2-3704
2-3704. Loans; application; limitations; use;
approval or rejection.
(a) The state treasurer is hereby authorized to disseminate
information and
provide remediation linked deposit loan packages to lending institutions
eligible for participation
in the remediation linked deposit loan program.
(b) The remediation linked deposit loan package shall be completed by the
eligible person
applying for the loan before the package is forwarded to the lending
institution for consideration.
(c) (1) An eligible lending institution that agrees to receive a
remediation
linked deposit
shall accept and review applications for remediation linked deposit loans from
eligible persons.
The lending institution shall apply all usual lending standards to determine
the credit worthiness
of eligible persons applying for remediation linked deposit loans. The total
amount of linked deposit loans for any one site shall not exceed $300,000. The
total amount of linked
deposits pursuant to K.S.A. 2-3701 through 2-3714, and amendments
thereto, shall not
exceed $5,000,000 at any one time.
(2) Only one remediation linked deposit loan shall be made and be outstanding
at any one
time to any eligible person.
(3) No remediation linked deposit loan shall be amortized for a period of
more than 10
years.
(d) An eligible person applying for a remediation linked deposit loan shall
certify on the
loan application that the loan will be used exclusively for the purpose of
paying costs of
corrective action approved by the department of health and environment or taken
in accordance
with requests or orders issued by the department of health and environment.
(e) The eligible lending institution may approve or reject a remediation
linked deposit loan package based on the lending institution's evaluation of
the applicant included in the
package, the amount of the individual loan in the package and other appropriate
considerations.
(f) The eligible lending institution shall forward to the state treasurer an
approved remediation linked deposit loan package, in the form and manner
prescribed and approved by the
state treasurer. The package shall include information regarding the amount of
the loan requested by the applicant and such other information as the state
treasurer requires,
including a certification
by the applicant that the applicant is an eligible person.
History: L. 2000, ch. 82, § 4; July 1.