{"data":{"id":"us-ok/okla.-stat.-tit.-2-2-5-87","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 2, § 2-5-87","heading":"Acceptance or rejection of agricultural linked deposit","body":"loan package - Notice - Agricultural linked deposit agreements.\n\nA. The State Treasurer may accept or reject an agricultural\n\nlinked deposit loan package or any portion of the package, based on\n\nthe State Treasurer's evaluation of the eligible agricultural\n\nbusinesses included in the package, the amount of individual loans\n\nin the package, and the amount of the package. If the State\n\nTreasurer recommends rejection, the written recommendation shall\n\ninclude reasons for the rejection in a report to the State Board of\n\nAgriculture. The Board shall forward a copy of the rejection notice\n\nto the lending institution and the borrower. The borrower may be\n\nallowed to bring the application into compliance with the Board and\n\nthe State Treasurer and resubmit the application. If the State\n\nTreasurer rejects the loan because sufficient funds are not\n\navailable for a linked deposit, then the applications may be\n\nconsidered in the order received when funds are once again available\n\nsubject to a review by the Board and the lending institution. In\n\nevaluating the eligible agricultural businesses, the State Treasurer\n\nshall consider the recommendation of the Board and the economic\n\nneeds of the area where the business is located.\n\nB. The State Treasurer may accept or reject an agricultural\n\nlinked deposit loan package or any portion of the package, based on\n\nthe agricultural business's debt-to-asset ratio. The State\n\nTreasurer shall have the authority to establish quarterly, based on\n\nthe availability of funds, a minimum debt-to-asset ratio of not less\n\nthan forty percent (40%), nor more than fifty-five percent (55%),\n\nrequired to qualify as an at-risk farm or ranch business.\n\nC. Upon acceptance of the agricultural linked deposit loan\n\npackage or any portion of the package, the State Treasurer shall\n\nnotify the Board, the lending institution and the borrower. Upon\n\nacceptance, the State Treasurer may place certificates of deposit\n\nwith the eligible lending institution at a rate below current market\n\nrates, as determined and calculated by the State Treasurer, or may\n\ninvest in bonds, notes, debentures, or other obligations or\n\nsecurities issued by the federal farm credit bank with respect to\n\nthe eligible lending institution at a rate below current market\n\nrates, as determined and calculated by the State Treasurer. When\n\nnecessary, the State Treasurer may place certificates of deposit or\n\nmay invest in obligations or securities prior to acceptance of an\n\nagricultural linked deposit loan package.\n\nD. 1. The eligible lending institution shall enter into an\n\nagricultural linked deposit agreement with the State Treasurer, that\n\nshall include requirements necessary to implement the purposes of\n\nthe Oklahoma Agricultural Linked Deposit Program. The requirements\n\nshall include an agreement by the eligible lending institution to\n\nlend an amount equal to the agricultural linked deposit to eligible\n\nagricultural businesses at an interest rate that reflects a\n\npercentage rate reduction below the present borrowing rate\n\napplicable to each specific agricultural business in the accepted\n\nloan package that is equal to the percentage rate reduction below\n\nmarket rates at which the certificates of deposit that constitute\n\nthe agricultural linked deposit were placed or at which the\n\ninvestments in bonds, notes, debentures, or other obligations or\n\nsecurities that constitute the agricultural linked deposit were\n\nmade. The requirements shall also reflect the market conditions\n\nprevailing in the eligible lending institution's lending area.\n\n2. The agreement may include a specification of the period of\n\ntime in which the lending institution is to lend funds upon the\n\nplacement of a linked deposit, and shall include provisions for the\n\ncertificates of deposit to be placed or the investment in bonds,\n\nnotes, debentures, obligations, or securities to be made for any\nditions\n\nprevailing in the eligible lending institution's lending area.\n\n2. The agreement may include a specification of the period of\n\ntime in which the lending institution is to lend funds upon the\n\nplacement of a linked deposit, and shall include provisions for the\n\ncertificates of deposit to be placed or the investment in bonds,\n\nnotes, debentures, obligations, or securities to be made for any\n\nmaturity considered appropriate by the State Treasurer not to exceed\n\ntwo (2) years and may be renewed for up to an additional three\n\nrenewals not to exceed two (2) years each at the option of the State\n\nTreasurer. Two additional renewals may be approved by the State\n\nTreasurer up to a total duration of participation of twelve (12)\n\nyears, but new eligible participants and eligible participants who\n\nhave had linked deposit loans for less than eight (8) years shall\n\nhave priority over renewals. No renewals will be allowed unless the\n\namount of principal has been reduced by a minimum of five percent\n\n(5%) and all interest paid to date from the time of the prior loan\n\nor renewal. Interest shall be paid at the times determined by the\n\nState Treasurer.","path":["OK Code","Title 2"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os2.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"2271bcc9313975465ff31640c3eaddb012896f44e8563f7bbc5a4aafd7409c2d","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-2-2-5-86","next":"us-ok/okla.-stat.-tit.-2-2-5-88"},"notice":"GroundRules: Original legal text. Not legal advice."}