Okla. Stat. tit. 62, § 62-90.5

Certification of good standing.

A. A participating financial institution that desires to make a

rural economic development loan shall accept and review applications

for loans in connection with qualified economic development

projects. A package of more than one rural economic development

loan may be developed by a development company certified by the U.S.

Small Business Administration or a political subdivision of this

state or an agency thereof, and such entity may submit an

application for one or more loans. The financial institution shall

apply all usual lending standards and shall exercise due diligence

to determine the creditworthiness of each applicant and to determine

if the loan should be granted. Loans made under the Rural Economic

Development Loan Act shall conform to the following conditions:

1. The maximum amount of loans under the Rural Economic

Development Loan Act in connection with a particular qualified

economic development project shall be determined by need in the

rural area in which the project is located and the number of jobs

created. The Oklahoma Department of Agriculture, Food, and Forestry

shall have final decision-making authority as to the maximum amount

of each loan;

2. The applicant shall certify on the loan application that the

loan will be used exclusively in connection with the qualified

economic development project in accordance with the purpose of the

Rural Economic Development Loan Act;

3. No loan shall be approved for any otherwise eligible

recipient when fifty percent (50%) or more of the interest in or

control of such otherwise eligible recipient is owned directly or

indirectly by a person who owns directly or indirectly fifty percent

(50%) or more of or controls another participating recipient;

4. No loan shall be made to any officer or director of the

financial institution making the loan or to any entity in which any

such officer or director maintains a controlling interest;

5. No loan shall be made to any employee of the Oklahoma

Department of Agriculture, Food, and Forestry or to any entity in

which any employee maintains a controlling interest;

6. Whoever knowingly makes a false statement concerning a rural

economic development loan application shall be prohibited from

participating in the Rural Economic Development Loan Program; and

7. Rural economic development loans may be renewed if the

amount of principal has been reduced by a minimum of five percent

(5%) per year and all interest has been paid from the time of the

original loan.

B. The participating financial institution shall forward to the

State Treasurer a rural economic development loan application in the

form and manner prescribed and approved by the Department. The

application shall include information regarding the amount of the

Oklahoma Statutes - Title 62. Public Finance Page 321

loan requested by each applicant, the number of jobs to be created,

and such other information the Department requires.

C. Upon receipt of a completed rural economic development loan

application, the Department shall forward the loan application to

the Oklahoma Tax Commission and the Oklahoma Employment Security

Commission. The Department shall review the loan package to

determine if the loan requested meets the requirements set forth

under the Rural Economic Development Loan Act. Within ten (10) days

of receipt of the loan package, the Tax Commission and the Oklahoma

Employment Security Commission shall determine and certify whether

or not the applicant is in good standing. The Department shall make

a recommendation concerning the application to the State Board of

Agriculture, after receipt of the responses from the Tax Commission

and the Oklahoma Employment Security Commission. No applicant shall

be approved without certification of good standing with the Tax

Commission and Oklahoma Employment Security Commission. Rejected
not the applicant is in good standing. The Department shall make

a recommendation concerning the application to the State Board of

Agriculture, after receipt of the responses from the Tax Commission

and the Oklahoma Employment Security Commission. No applicant shall

be approved without certification of good standing with the Tax

Commission and Oklahoma Employment Security Commission. Rejected

applications may be resubmitted after reasons for rejection have

been addressed.