901:3-63-21 Contract of guarantee with lending institutions.

(A) Upon receipt by the director of notification from the controlling board that the board has received an FFLP loan application and has approved release of money from the family farm loan fund for financial assistance sought by that application, the director shall enter into a contract of guarantee which establishes the terms of the guarantee with the loan application lending institution.

(B) Form ODA COG1 shall contain the terms of any contract of guarantee between the director and any lending institution participating in the FFLP. Form ODA COG1 shall be the only authorized document upon which a contract of guarantee between the director and any participating lending institution may be executed.

(C) Following execution of an FFLP contract of guarantee, the director shall docket the executed contract and place the original and two copies of the contract in the appropriate ODA loan application file unit. The director shall forward a copy of the contract of guarantee to the appropriate lending institution, to DOD, and to the applicant.

(D) The director shall enter into a contract of guarantee for an FFLP loan only when the guaranteed portion of the loan, committed from the family farm loan fund, is forty per cent or less of the original unamortized principal portion of the loan.

(E) In no event shall the director enter into a contract of guarantee for an FFLP loan when total funds committed from the family farm loan fund will exceed two hundred thousand dollars.

(F) In any action or process pursuant to section 901.83 of the Revised Code, whether legal, administrative, or otherwise, in which the director is named as a party, the director of the Ohio DOD shall also be named as a party. Should the director of the Ohio DOD not be so named as a party, the director of agriculture shall seek joinder of the director of DOD as a defendant, third party defendant, or as an appropriate additional party in such action or process.

(G) The lending institution shall provide the borrower with a copy of the completed contract of guarantee with an appropriate notice of the borrower’s obligations contained in the contract.

HISTORY: Eff 8-7-98

Rule promulgated under: RC Chapter 119.

Rule authorized by: RC 901.82(A)(8)

Rule amplifies: RC 122.011, 901.82, 901.83

R.C. 119.032 review date: 07-29-2003