Bill Text: OH SB250 | 2009-2010 | 128th General Assembly | Engrossed

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Bill Title: 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.

Spectrum: Slight Partisan Bill (Republican 19-12)

Status: (Engrossed - Dead) 2010-05-27 - Passed 3rd Consideration House [SB250 Detail]

Download: Ohio-2009-SB250-Engrossed.html

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As Passed by the Senate

128th General Assembly Regular Session 2009-2010

S. B. No. 250

Senators Gillmor, Wilson 

Cosponsors: Senators Buehrer, Cafaro, Carey, Faber, Gibbs, Seitz, Strahorn, Turner, Coughlin, Fedor, Grendell, Harris, Hughes, Jones, Kearney, Miller, D., Miller, R., Schaffer, Schiavoni, Schuring, Stewart, Wagoner, Widener, Sawyer, Morano, Niehaus, Smith, Husted, Patton 

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A BILL

To amend sections 135.631, 135.73, 135.74, and 135.75

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of the Revised Code to modify the Agricultural

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Linked Deposit Program with respect to the maximum

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amount the Treasurer of State may invest in

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agricultural linked deposits, the interest rate at

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which loans are made under the Program, and the

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maximum loan amount.

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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	8
of the Revised Code be amended to read as follows:	9

Sec. 135.631.  The treasurer of state shall attempt to place	10
up to onetwo hundred twenty-five million dollars of the amount	11
authorized to be invested under section 135.63 of the Revised Code	12
in agricultural linked deposits, as defined in section 135.71 of	13
the Revised Code, subject to the procedures set forth in sections	14
135.71 to 135.76 of the Revised Code.	15

Sec. 135.73.  (A) An eligible lending institution that	16
desires to receive an agricultural linked deposit shall accept and	17
review applications for loans from eligible agricultural	18
businesses. The lending institution shall apply all usual lending	19
standards to determine the creditworthiness of each eligible	20
agricultural business. No loan shall exceed one hundred fifty	21
thousand dollars.	22

(B) An eligible agricultural business shall certify on its	23
loan application that the reduced rate loan will be used	24
exclusively for agricultural purposes on land or in facilities	25
owned or operated by the business in this state and that the loan	26
will materially contribute to the preservation of the business.	27
Whoever knowingly makes a false statement concerning such	28
application is guilty of the offense of falsification under	29
section 2921.13 of the Revised Code.	30

(C) In considering which eligible agricultural businesses to	31
include in the agricultural linked deposit loan package for	32
reduced rate loans, the eligible lending institution shall give	33
priority to the immediacy of a business's financial need for the	34
loan to meet planting deadlines. The institution may also consider	35
the economic needs of the area in which the business is located	36
and other factors it considers appropriate to determine the	37
relative financial need of the business.	38

(D) The eligible lending institution shall forward to the	39
treasurer of state an agricultural linked deposit loan package, in	40
the form and manner prescribed by the treasurer of state. The	41
package shall include information regarding the amount of the loan	42
requested by each eligible agricultural business and such other	43
information regarding each business as the treasurer of state	44
requires. The institution shall certify that each applicant is an	45
eligible agricultural business, and shall, for each business,	46
certify the present borrowing rate applicable to each specific	47
eligible agricultural business.	48

Sec. 135.74.  (A) The treasurer of state may accept or reject	49
an agricultural linked deposit loan package or any portion	50
thereof, based on the treasurer's evaluation of the eligible	51
agricultural businesses included in the package, the amount of	52
individual loans in the package, and the amount of the package. In	53
evaluating the eligible agricultural businesses, the treasurer of	54
state shall give priority to a business's financial need for the	55
loan to meet planting deadlines but shall also consider the	56
overall financial need of the business and the economic needs of	57
the area where the business is located.	58

(B) Upon acceptance of the agricultural linked deposit loan	59
package or any portion thereof, the treasurer of state may place	60
certificates of deposit with the eligible lending institution at a	61
rate below current market rates, as determined and calculated by	62
the treasurer of state, or may invest in bonds, notes, debentures,	63
or other obligations or securities issued by the federal farm	64
credit bank with respect to the eligible lending institution at a	65
rate below current market rates, as determined and calculated by	66
the treasurer of state. When necessary, the treasurer may place	67
certificates of deposit or may invest in such obligations or	68
securities prior to acceptance of an agricultural linked deposit	69
loan package.	70

(C) The eligible lending institution shall enter into an	71
agricultural linked deposit agreement with the treasurer of state,	72
which shall include requirements necessary to carry out the	73
purposes of sections 135.71 to 135.76 of the Revised Code. Such	74
requirements shall include an agreement by the eligible lending	75
institution to lend the value of the agricultural linked deposit	76
to eligible agricultural businesses at a rate that reflects a	77
percentage rate reduction below the present borrowing rate	78
applicable to each specific agricultural business in the accepted	79
loan package that is equalproportional to the percentage rate	80
reduction below market rates at which the certificates of deposit	81
that constitute the agricultural linked deposit were placed or at	82
which the investments in bonds, notes, debentures, or other	83
obligations or securities that constitute the agricultural linked	84
deposit were made. Such requirements shall also reflect the market	85
conditions prevailing in the eligible lending institution's	86
lending area. The agreement may include a specification of the	87
period of time in which the lending institution is to lend funds	88
upon the placement of a linked deposit, and shall include	89
provisions for the certificates of deposit to be placed or the	90
investment in bonds, notes, debentures, obligations, or securities	91
to be made for any maturity considered appropriate by the	92
treasurer of state not to exceed two years and may be renewed for	93
up to an additional two years at the option of the treasurer.	94
Interest shall be paid at the times determined by the treasurer of	95
state.	96

(D) Eligible lending institutions shall comply fully with	97
Chapter 135. of the Revised Code.	98

Sec. 135.75.  (A) Upon the placement of an agricultural	99
linked deposit with an eligible lending institution, such	100
institution is required to lend such funds to each approved	101
eligible agricultural business listed in the agricultural linked	102
deposit loan package required by division (D) of section 135.73 of	103
the Revised Code and in accordance with the agricultural linked	104
deposit agreement required by division (C) of section 135.74 of	105
the Revised Code. The loan shall be at a rate that reflects a	106
percentage rate reduction below the present borrowing rate	107
applicable to each business that is equal to the percentage rate	108
reduction below market rates at which the certificate of deposits	109
that constitute the agricultural linked deposit were placed or at	110
which the investments in bonds, notes, debentures, or other	111
obligations or securities that constitute the agricultural linked	112
deposit were made. A certification of compliance with this section	113
in the form and manner as prescribed by the treasurer of state	114
shall be required of the eligible lending institution.	115

(B) The treasurer of state shall take any and all steps	116
necessary to implement the agricultural linked deposit program and	117
monitor compliance of eligible lending institutions and eligible	118
agricultural businesses, including the development of guidelines	119
as necessary.	120

Section 2. That existing sections 135.631, 135.73, 135.74,	121
and 135.75 of the Revised Code are hereby repealed.	122