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§ 1306. Review of applications by the Secretary of Commerce

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 3 P.S. Agriculture

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 3 P.S. Agriculture (Refs & Annos)
Chapter 18. Agricultural Development Act (Refs & Annos)
3 P.S. § 1306
§ 1306. Review of applications by the Secretary of Commerce
Currentness
(a) Form of application.--Prior to recommending the approval or rejection of any interest deferral or loan guarantee authorized by this act, the Secretary of Commerce1 shall receive from the prospective lender an application in the form and manner prescribed by the Secretary of Agriculture and the Secretary of Commerce together with any other information as they shall require the prospective borrower and the prospective lender to provide.
(b) Review of application.--Upon receipt of a properly submitted and documented application, the Secretary of Commerce shall conduct a financial review of the application and recommend approval, approval with special conditions, or rejection of the application on the basis of the following criteria and the eligibility criteria and loan limits prescribed by section 8:2
(1) The ability of the applicant to meet and satisfy all debt service as it becomes due and payable.
(2) The sufficiency of available collateral.
(3) The relevant criminal and credit history and ratings of the applicant as determined from credit reporting services and other sources.
(4) The eligibility of the applicant and the project for the guarantee or interest deferral which is being sought.
(5) The capital needs of the applicant.
(6) The payment to date of all tax obligations due and owing by the applicant to the Commonwealth or any political subdivision thereof.
(7) Evidence that insufficient private funds are available at reasonable rates and terms within the necessary time without the requested assistance.
(c) Transmittal to the Secretary of Agriculture.--Following the review and recommendation, the Secretary of Commerce shall transmit the application and the recommendation on that application to the Secretary of Agriculture together with the rationale for that recommendation and any other information requested by the Secretary of Agriculture and the Secretary of Commerce.
(d) Use of area loan organizations.--In carrying out his duties and responsibilities under this section, the Secretary of Commerce may utilize area loan organizations which have been certified by the Secretary of Agriculture and the Secretary of Commerce. In determining if an area loan organization should be certified for the purposes of this act, the secretaries shall consider, in addition to other relevant factors, the expertise of that area loan organization in matters relating to agriculture. The secretaries may certify an area loan organization for the purposes of performing some duties and responsibilities under this section but deny certification for the purpose of performing other duties and responsibilities for which the organization is determined not to have sufficient expertise or personnel. Area loan organizations may establish and charge reasonable fees for processing loan guarantees and interest deferrals under this act with the approval of the secretary.

Credits

1984, July 2, P.L. 537, No. 108, § 6, imd. effective.

Footnotes

1
The Secretary of Commerce has been renamed the Secretary of Community and Economic Development. See 71 P.S. § 1709.2103.
2
3 P.S. § 1308.
3 P.S. § 1306, PA ST 3 P.S. § 1306
Current through Act 10 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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