§ 35-75-108 — Authority - loans to or made by lenders

(1) The authority may:

(a) Make, and undertake commitments to make, loans to lenders under terms
and conditions requiring the proceeds thereof to be used by such lenders to make
loans to finance agricultural enterprises. Loan commitments or actual loans shall
be originated through and serviced by any bank, trust company, savings and loan
association, mortgage banker, or other financial institution authorized to transact
business in this state.

(b) Invest in, purchase or make commitments to invest in or purchase, or take
assignments or make commitments to take assignments of loans made by lenders
for the construction, rehabilitation, or purchase of agricultural enterprises. No loan
shall be eligible for investment in, purchase, or assignment by the authority if the
loan was made more than six months prior to the date of investment, purchase, or
assignment by the authority.

(2) Prior to exercising any of the powers authorized in subsection (1) of this
section, the authority shall require the lender to certify and agree that:

(a) The loan is, or if the loan has not yet been made will at the time of making
be, in all respects a prudent investment; and

(b) Such lender will use the proceeds of the loan, investment, sale, or
assignment within a reasonable period of time to make loans or purchase loans to
finance agricultural enterprises; or, if such lender has made a commitment to make
loans to finance agricultural enterprises on the basis of a commitment from the
authority to purchase such loans, such lender will make and sell the loans to the
authority within a reasonable period of time.

(3) Prior to exercising any of the powers under subsection (1) of this section,
the authority may, but is not obligated to:

(a) Require that the loan involved be insured by a loan insurer or be
guaranteed by a loan guarantor;

(b) Require any type of security that it deems reasonable and necessary; or

(c) Authorize the reservation of funds by lenders in such amount and subject
to such conditions as the authority considers reasonable and necessary.

Legislative History

Source: L. 81: Entire article added, p. 1737, � 1, effective June 19.