Okla. Stat. tit. 62, § 62-90.6

- Certification of compliance - Forwarding of payments - State

liability.

A. Loans made pursuant to applications approved by the Oklahoma

Department of Agriculture, Food, and Forestry shall be subject to

the availability of funds pledged to the Rural Economic Development

Loan Revolving Fund, and if a loan is not funded for such reason, it

shall be funded in the order of the priority given each loan

application by the Department.

B. Upon acceptance of the loan or any portion thereof, the

Department shall notify the participating financial institution and

the applicant. The participating financial institution shall fund

the loan to the approved applicant to the extent of its unencumbered

pledge to the Rural Economic Development Loan Revolving Fund, not to

exceed the amount of the loan accepted. If the amount of the

participating financial institution's unencumbered pledge is less

than the amount of the loan as accepted, the Department shall notify

all other participating financial institutions with an unencumbered

pledge to the fund and shall require each such institution to

transfer an amount to the Rural Economic Development Loan Revolving

Fund. Such amount shall be equal to the amount of the remainder of

the loan multiplied by the percentage of the institution's

unencumbered pledge of all unencumbered pledges. The Department

shall transfer such amounts to the participating financial

institution making the loan.

Oklahoma Statutes - Title 62. Public Finance Page 322

C. The percentage rate of the loan shall be reduced compared to

the rate imposed with respect to other loans made by the financial

institution to similar recipients for similar purposes in an amount

determined by the financial institution making the loan.

D. The Department may retain in the Rural Economic Development

Loan Fund an amount not to exceed two percent (2%) of the total

amount of a loan. Amounts retained pursuant to the provisions of

this subsection may be expended by the Department for costs

associated with administration of this act and may be paid by the

State Treasurer to a development company certified by the U.S. Small

Business Administration or a political subdivision of this state or

agency thereof for costs associated with developing a loan package

if all loans in the package are approved pursuant to the provisions

of this act.

E. A certification of compliance with this section in the form

and manner as prescribed by the Department shall be required of the

participating financial institution.

F. The participating financial institution making the loan

shall, within three (3) business days of receipt, forward all

payments received for repayment of the loan to the Department for

immediate deposit to the Rural Economic Development Loan Revolving

Fund, until the amount deposited is equal to the amount transferred

by other participating financial institutions in connection with the

loan together with interest at the rate applied to the loan. The

Department shall forward such payments to such other participating

financial institutions in proportion to the amounts transferred in

connection with the loan. Remaining payments received for repayment

of the loan shall be retained by the participating financial

institution making the loan.

G. Neither the State of Oklahoma nor the Department shall be

liable to any participating financial institution in any manner for

payment of the principal or interest on a rural economic development

loan.