6.3.1 Oversight of Agricultural Producer Applications. The MSA sets forth that the Administrator shall carry out the following responsibilities in the solicitation, review and approval of Agricultural Producer applications: a. stimulate awareness of, and disseminate information about, the availability of funds to potential borrowers; b. provide application and documents to potential borrowers for new loans or the assumption of existing loans; c. assist potential borrowers in completing application submissions and related required documents; d. underwrite the proposed loan and determine the credit worthiness of the borrower using established lending standards; e. confirm that all required sections of the application and supporting documentation have been satisfactorily completed; f. use the Administrator’s criteria for loan approval; g. provide timely decisions on loan applications that have been approved; and h. inform applicants who have not selected by the Administrator, including reason(s) for denial. 6.3.2 Servicing of Loans to Agricultural Producers. The MSA sets forth that the Administrator shall carry out the following responsibilities relating to servicing loans to Agricultural Producers, which responsibilities shall be set forth in greater detail in the MSA: a. submit complete requisition packages to DHCR; b. promptly close loans with approved borrowers, executing the note, security agreement, and any other applicable agreements or documents; c. when necessary, inform applicants when DHCR rejects an application and the reasons therefor; d. deposit DHCR funds into an interest-bearing account; e. account for DHCR funds including principal and interest accrued on the interestbearing account; f. account separately for loans made pursuant to the HDF-funded component and the capital appropriation component of the Program; g. close loan with Agricultural Producers, subject to review by the Administrator, of compliance with all applicable laws including acquisition of building permits, etc., where applicable; h. return any disbursed loan funds to DHCR within 30 days’ notice that an Agricultural Producer approved for a loan has withdrawn their application for such funds; i. monitor construction progress through completion; halt advancing any loan proceeds upon evidence of project default or financial default of the Agricultural Producer; j. ensure and maintain documentation that scope of work complies with State Sanitary Code, State Fire Prevention and Building Code and/or pertinent local municipal building code, via issuance of a building permit, Certificate of Occupancy by the local municipality and State or county health department approval, if applicable; k. charge and collect a loan origination/servicing fee as set forth in Exhibit 3 of the MSA; l. notify DHCR of any problems which arise in servicing loans; secure repayments pursuant to the Loan Documents, following the procedures which are utilized by the Administrator in collecting similar unsecured loans, as set forth in the administration plan of the MSA; m. on demand by DHCR, assign note, security agreement and other documents to DHCR; n. cooperate with DHCR in collection efforts on defaulted loans, as requested and as set forth in the administration plan; o. forward repayments of principal and interest accrued on the interest-bearing account to DHCR on an annual basis; and p. maintain accurate records, in collaboration with DHCR, or loans and amounts against the available balance of the revolving loan fund and capital appropriation sources, respectively.
