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A.  For the purpose of this Part the commission may:

(1)  Guarantee the loan of money, subject to the limitation prescribed herein and upon such other terms and conditions as the commission may prescribe, to the assessors of this state.  Participation on the part of the commission shall not exceed one hundred per centum of the total amount of the loan made to the borrower for any purpose herein authorized or one hundred per centum of the total balance of the loan at the time of borrower’s default, if any, whichever is the lesser;

(2)  Enter into contracts with any federal agency, federally insured financial institution or bank authorized to do business in Louisiana upon such terms as may be agreed to, to provide for the administration by such agency, institution or bank of any loan plan guaranteed by the commission, including applications therefor and terms and repayment thereof, and to establish the conditions for payment by the commission of the guarantee on any loan;

(3)  Collect loans guaranteed by the commission on which the commission has met its guarantee obligations; and

(4)  Perform such other acts as may be necessary or appropriate to carry out effectively the objects and purposes of the commission under this Part.

B.  Prior to the guarantee of any loan, the commission shall adopt rules and regulations, not inconsistent with the provisions of this Part, governing any other matters relating to the activities of the commission under the provisions of this Part.

Such rules and regulations shall include, but are not limited to, the following:

(1)  To require a full disclosure of relationships of the borrower and the proposed lender with all state officials and with employees and members of the Louisiana Tax Commission.

(2)  To submit its guarantee and collection procedures to the commissioner of financial institutions for his recommendations and approval.

(3)  To require that all tax recipient bodies share equally in the cost of reappraisal with the state.

(4)  To withhold distribution of the additional three million dollars of the state’s share until all tax recipient bodies have participated in an amount equal to the original distribution of three million dollars as provided for in Act 701 of the 1976 Regular Session.

(5)  To adopt loan application and processing procedures.

(6)  To require that the lending institution be a fiscal agency of the parish as provided for in Part I and Part II of Chapter 7 of Title 39 of the Louisiana Revised Statutes of 1950.

C.  The commission shall report to the State Bond Commission the total amount of loans guaranteed under the provisions of this Part each month during the first year and the amounts outstanding each quarter thereafter.

Added by Acts 1977, No. 571, §1, eff. July 15, 1977; H.C.R. No. 88, 1993 R.S., eff. May 30, 1993; H.C.R. No. 1, 1994 R.S., eff. May 11, 1994.