2-3704.   Loans; application; limitations; use;approval or rejection.(a) The state treasurer is hereby authorized to disseminateinformation andprovide remediation linked deposit loan packages to lending institutionseligible for participationin the remediation linked deposit loan program.

      (b)   The remediation linked deposit loan package shall be completed by theeligible personapplying for the loan before the package is forwarded to the lendinginstitution for consideration.

      (c) (1)   An eligible lending institution that agrees to receive aremediationlinked depositshall accept and review applications for remediation linked deposit loans fromeligible persons.The lending institution shall apply all usual lending standards to determinethe credit worthinessof eligible persons applying for remediation linked deposit loans. The totalamount of linked deposit loans for any one site shall not exceed $300,000. Thetotal amount of linkeddeposits pursuant to K.S.A. 2-3701 through 2-3714, and amendmentsthereto, shall notexceed $5,000,000 at any one time.

      (2)   Only one remediation linked deposit loan shall be made and be outstandingat any onetime to any eligible person.

      (3)   No remediation linked deposit loan shall be amortized for a period ofmore than 10years.

      (d)   An eligible person applying for a remediation linked deposit loan shallcertify on theloan application that the loan will be used exclusively for the purpose ofpaying costs ofcorrective action approved by the department of health and environment or takenin accordancewith requests or orders issued by the department of health and environment.

      (e)   The eligible lending institution may approve or reject a remediationlinked deposit loan package based on the lending institution's evaluation ofthe applicant included in thepackage, the amount of the individual loan in the package and other appropriateconsiderations.

      (f)   The eligible lending institution shall forward to the state treasurer anapproved remediation linked deposit loan package, in the form and mannerprescribed and approved by thestate treasurer. The package shall include information regarding the amount ofthe loan requested by the applicant and such other information as the statetreasurer requires,including a certificationby the applicant that the applicant is an eligible person.

      History:   L. 2000, ch. 82, § 4; July 1.