§ 57-10-101. Short title
This article shall be called the “Small Businessman’s Loan Assistance Law of 1972.”
§ 57-10-103. Declaration of intent; construction
The increasing need for commercial financing at reasonable rates for the small businessman necessitates a new loan guaranty program in order that the economy of the state may continue to grow and prosper. It is the intent of this article to encourage small business loans by furnishing lending institutions additional security to place such loans […]
§ 57-10-105. Definitions
Whenever the following terms or similar terms are used herein they shall have the following meanings, unless the context clearly indicates otherwise: “Borrower” means any individual, firm, partnership or corporation approved by the committee, residing in Mississippi who applies for or borrows money from any lender under the provisions of this article. “Lender” shall mean […]
§ 57-10-109. Manager
The manager shall be required to have a surety bond in an amount to be fixed by the committee. The manager, subject to the approval of the committee, is authorized to employ such additional technical, clerical and stenographic assistance as may be necessary to carry out the provisions of this article. It is hereby made […]
§ 57-10-111. General powers and duties of committee
The committee is authorized and empowered to prepare and promulgate reasonable rules, regulations and policies for applications for loans, credit instruments, and any and all other forms, rules, policies, regulations or procedures desirable in order to carry out the provisions of this article. The committee shall determine the amount of the guaranty fee to be […]
§ 57-10-113. Eligibility for loan guaranty
A borrower may apply to the committee for a loan guaranty necessary to meet the lender’s approval of the loan. The borrower must demonstrate his inability to obtain conventional financing, and thus the need for the state loan guaranty.
§ 57-10-115. Loan guaranty fee; loan limitations and restrictions
On every loan, the borrower shall pay a nonrefundable guaranty fee of two percent (2%) of the guaranteed portion, to be paid at the time of disbursement of loan proceeds. Upon collection, the committee shall remit all such guaranty fees to a special fund for such fees created by the State Treasurer. No loan guaranty […]
§ 57-10-117. Supplementary security requirement for corporate borrower
If there is a corporate borrower, the committee shall require the personal guarantee or endorsement of any principal or entity owning at least twenty percent (20%) of the corporation that is borrowing money from any lender under the provisions of this article, and the committee may also require any other guarantees it deems appropriate.
§ 57-10-119. Advancement of loan in installments
If the loan is approved and the lender so desires, the loan, where feasible, may be advanced in installments under such rules and regulations as the committee may establish.
§ 57-10-121. Proceedings by lender upon default on loan; assignment of unsatisfied judgment to state
If the borrower defaults in the payment of any loan or any installments thereof, fails to follow his plan and applies any installment or installments of his loan to purposes other than those in his plan as certified by the committee, violates any of the covenants and conditions contained in the instrument securing the loan, […]
§ 57-10-123. Filing of claim for payment of loan from state funds
If the requirements appearing heretofore in Section 57-10-121 have been met by the lender and any sum of money remains due on the principal of the loan, the lender must file with the manager, on the form prescribed by the committee, the lender’s claim for the amount of principal remaining due and outstanding under the […]
§ 57-10-125. Collection of debt to state
If either the guaranty fee fund or the small businessman’s loan fund becomes liable for any principal due under any loan and any payment is made from either fund to the lender in payment of the balance of the principal remaining due under such loan, the amount thus paid shall become a debt due the […]
§ 57-10-127. Distribution of collections by state
Methods of distribution of all of the collections made by the district attorney or county attorney, where either or both of the funds in the state treasury have become liable for the principal due under any such loan and payment of the remaining balance due on the principal of the loan have been paid from […]
§ 57-10-129. Extent of liability of state funds
The extent of the liability of either the guaranty fee fund or the small businessman’s loan fund to the lender shall be seventy-five percent (75%) of the principal remaining due and unpaid after the lender has fully exhausted all remedies for recovery as provided herein, and neither of these funds shall be liable for interest […]
§ 57-10-131. Investment of moneys in state funds
The small businessman’s loan fund and at least three-fourths (3/4) of the guaranty fee fund shall be invested in interest-bearing notes or savings accounts for the highest possible yield as determined by the committee. However, not more than ten percent (10%) of the combined total of the two (2) funds shall be invested in interest-bearing […]
§ 57-10-133. Acceptance of federal and private grant funds
The committee is hereby authorized and empowered to accept federal and private grant funds and to use same for all purposes. The committee may use any such federal or private grant funds to establish a supplemental loan guaranty fund with the state treasury and may make additional loan guaranties on the basis of such fund; […]
§ 57-10-135. Liability of state and subdivisions for obligations and guarantees assumed by state funds
Obligations and guarantees assumed by the small businessman’s loan fund and the guaranty fee fund under the provisions of the guaranty program shall not be in any way an obligation, loan, debt or liability of the State of Mississippi or of any political subdivision thereof other than the small businessman’s loan fund and the guaranty […]
§ 57-10-137. Transfer of moneys to general fund upon termination of program
If the program provided by this article is terminated or discontinued for any reason in the future, all monies in the guaranty fee fund and small businessman’s loan fund in the state treasury shall, after payment of all outstanding indebtedness, be transferred to the general fund.