Section 5-21-3

Definitions.

For purposes of this chapter, the following terms shall have the meaning hereinafter ascribed to them, unless the context clearly indicates otherwise:

(1) PLAN. The Wallace Plan for Linked Deposits, created in Section 5-21-4.

(2) TREASURER. The Treasurer for the State of Alabama.

(3) LENDING INSTITUTION or ELIGIBLE LENDING INSTITUTION or LENDER. All state banks, savings and loan associations, and any other lending institutions of this state which are or shall become a depository of state funds, which agree to participate in a linked deposit plan.

(4) LINKED DEPOSIT or LINKED DEPOSIT PLAN. An agreement between the Treasurer and an eligible lending institution whereby a deposit is placed with the institution at a rate of return two percent below the current market rate for such a deposit, provided the institution agrees to lend the equivalent value of the deposit to eligible agricultural and business operations at an interest rate two percent below the normal charge, as hereinafter provided.

(5) ELIGIBLE AGRICULTURAL OPERATION. Any person, corporation, partnership, or other entity which is engaged in the production of agricultural, livestock, poultry, timber, dairy, or fruit or other horticultural products and which:

a. Derives at least 70 percent of its gross income from such production;

b. Operates exclusively in Alabama; and

c. Has at the time its application is submitted debts equal to or greater than 25 percent of its assets.

(6) ELIGIBLE BUSINESS OPERATION. Any person, proprietor, corporation, partnership, or other entity which:

a. Is headquartered in Alabama;

b. Is organized for profit;

c. Maintains facilities exclusively in Alabama;

d. Has no more than 150 employees at the time it applies for a loan under the plan;

e. For loans of $250,000 or less, demonstrates to the lending institution that for every $15,000 loaned at least one job is sustained or created as a result of the loan;

f. For loans of from $250,000 to $500,000, demonstrates to the lending institution that for each $10,000 worth of loan proceeds approved, at least one new job is created within the state; and

g. Has at the time its application is submitted debts equal to or greater than 35 percent of its assets.

(7) EMERGENCY INTERIM DEPOSITS. Deposits discretionarily made by the Treasurer in support of loans made by eligible lending institutions to persons, businesses, organizations, or local governments which have suffered loss, and which are located in areas in which property loss has occurred due to fire, flood, tornado, hurricane, or other act of God, or other natural or man-made disaster.

(Acts 1988, No. 88-162, p. 256, §3; Acts 1991, No. 91-720, p. 1399, §1; Acts 1993, No. 93-351, p. 540, §1; Acts 1995, No. 95-257, p. 430, §1; Act 99-659, 2nd Sp. Sess., §1.)