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H. B. No. 415 As IntroducedAs Introduced
129th General Assembly | Regular Session | 2011-2012 |
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Representatives Sprague, Hill
Cosponsors:
Representatives Buchy, Derickson, Gardner, Goodwin, Goyal, Grossman, Hall, Peterson, Thompson
A BILL
To amend sections 135.631, 135.73, 135.74, and 135.75
of the Revised Code to modify the Agricultural
Linked Deposit Program with respect to the maximum
amount the Treasurer of State may invest in
agricultural linked deposits, the interest rate at
which loans are made under the Program, and the
maximum loan amount.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 135.631, 135.73, 135.74, and 135.75
of the Revised Code be amended to read as follows:
Sec. 135.631. The treasurer of state shall attempt to place
up to one hundred
twenty-five sixty-five million dollars of the
amount authorized to be invested under section 135.63 of the
Revised Code in agricultural linked deposits, as defined in
section 135.71 of the Revised Code, subject to the procedures set
forth in sections 135.71 to 135.76 of the Revised Code.
Sec. 135.73. (A) An eligible lending institution that
desires to receive an agricultural linked deposit shall accept and
review applications for loans from eligible agricultural
businesses. The lending institution shall apply all usual lending
standards to determine the creditworthiness of each eligible
agricultural business. No loan shall exceed one hundred fifty
thousand dollars.
(B) An eligible agricultural business shall certify on its
loan application that the reduced rate loan will be used
exclusively for agricultural purposes on land or in facilities
owned or operated by the business in this state and that the loan
will materially contribute to the preservation of the business.
Whoever knowingly makes a false statement concerning such
application is guilty of the offense of falsification under
section 2921.13 of the Revised Code.
(C) In considering which eligible agricultural businesses to
include in the agricultural linked deposit loan package for
reduced rate loans, the eligible lending institution shall give
priority to the immediacy of a business's financial need for the
loan to meet planting deadlines. The institution may also consider
the economic needs of the area in which the business is located
and other factors it considers appropriate to determine the
relative financial need of the business.
(D) The eligible lending institution shall forward to the
treasurer of state an agricultural linked deposit loan package, in
the form and manner prescribed by the treasurer of state. The
package shall include information regarding the amount of the loan
requested by each eligible agricultural business and such other
information regarding each business as the treasurer of state
requires. The institution shall certify that each applicant is an
eligible agricultural business, and shall, for each business,
certify the present borrowing rate applicable to each specific
eligible agricultural business.
Sec. 135.74. (A) The treasurer of state may accept or reject
an agricultural linked deposit loan package or any portion
thereof, based on the treasurer's evaluation of the eligible
agricultural businesses included in the package, the amount of
individual loans in the package, and the amount of the package. In
evaluating the eligible agricultural businesses, the treasurer of
state shall give priority to a business's financial need for the
loan to meet planting deadlines but shall also consider the
overall financial need of the business and the economic needs of
the area where the business is located.
(B) Upon acceptance of the agricultural linked deposit loan
package or any portion thereof, the treasurer of state may place
certificates of deposit with the eligible lending institution at a
rate below current market rates, as determined and calculated by
the treasurer of state, or may invest in bonds, notes, debentures,
or other obligations or securities issued by the federal farm
credit bank with respect to the eligible lending institution at a
rate below current market rates, as determined and calculated by
the treasurer of state. When necessary, the treasurer may place
certificates of deposit or may invest in such obligations or
securities prior to acceptance of an agricultural linked deposit
loan package.
(C) The eligible lending institution shall enter into an
agricultural linked deposit agreement with the treasurer of state,
which shall include requirements necessary to carry out the
purposes of sections 135.71 to 135.76 of the Revised Code. Such
requirements shall include an agreement by the eligible lending
institution to lend the value of the agricultural linked deposit
to eligible agricultural businesses at a rate that reflects a
percentage rate reduction below equal to the present borrowing
rate applicable to each specific agricultural business in the
accepted loan package that is equal to minus the percentage rate
reduction below difference between the market rates rate and the
actual rate at which the certificates of deposit that constitute
the agricultural linked deposit were placed or at which the
investments in bonds, notes, debentures, or other obligations or
securities that constitute the agricultural linked deposit were
made. Such requirements shall also reflect the market conditions
prevailing in the eligible lending institution's lending area. The
agreement may include a specification of the period of time in
which the lending institution is to lend funds upon the placement
of a linked deposit, and shall include provisions for the
certificates of deposit to be placed or the investment in bonds,
notes, debentures, obligations, or securities to be made for any
maturity considered appropriate by the treasurer of state not to
exceed two years and may be renewed for up to an additional two
years at the option of the treasurer. Interest shall be paid at
the times determined by the treasurer of state.
(D) Eligible lending institutions shall comply fully with
Chapter 135. of the Revised Code.
Sec. 135.75. (A) Upon the placement of an agricultural
linked deposit with an eligible lending institution, such
institution is required to lend such funds to each approved
eligible agricultural business listed in the agricultural linked
deposit loan package required by division (D) of section 135.73 of
the Revised Code and in accordance with the agricultural linked
deposit agreement required by division (C) of section 135.74 of
the Revised Code. The loan shall be at a rate that reflects a
percentage rate reduction below the present borrowing rate
applicable to each business that is equal to the percentage rate
reduction below market rates at which the certificate of deposits
that constitute the agricultural linked deposit were placed or at
which the investments in bonds, notes, debentures, or other
obligations or securities that constitute the agricultural linked
deposit were made. A certification of compliance with this section
in the form and manner as prescribed by the treasurer of state
shall be required of the eligible lending institution.
(B) The treasurer of state shall take any and all steps
necessary to implement the agricultural linked deposit program and
monitor compliance of eligible lending institutions and eligible
agricultural businesses, including the development of guidelines
as necessary.
Section 2. That existing sections 135.631, 135.73, 135.74,
and 135.75 of the Revised Code are hereby repealed.
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