§ 35-75-109 — Authority - rules and regulations

(1) Prior to exercising its
authority under section 35-75-108 (1), the authority shall promulgate rules and
regulations governing its activities authorized under this article, including, but not
limited to:

(a) Procedures for the submission of requests or invitations and proposals for
making loans to lenders and procedures for the investment in, purchase,
assignment, and sale of loans;

(b) Procedures for reinvestment by lenders of the proceeds, or an equivalent
amount, from any loan to lenders and procedures for the investment in or purchase
by the authority of loans or the assignment or sale to the authority of loans to
finance agricultural enterprises;

(c) The number of agricultural projects, location of the projects, and other
characteristics of agricultural enterprises to be financed directly or indirectly by
the authority pursuant to section 35-75-108 (1), including, to the extent reasonably
possible, assurance that the agricultural enterprises to be financed by an issue of
bonds or series of issues will improve employment conditions or otherwise enhance
the welfare of persons in the agricultural sector;

(d) Rates, fees, charges, and other terms and conditions of originating or
servicing loans in order to protect against an excessive financial return or benefit
by the originator or servicer;

(e) The type and amount of collateral or security to be provided to assure
repayment of loans made by the authority;

(f) The type of collateral, payment bonds, performance bonds, or other
security to be provided for any loans made by a lender for construction loans;

(g) The nature and amount of fees to be charged by the authority to provide
for expenses and reserves of the authority;

(h) Standards and requirements for the allocation of available money among
lenders and the determination of the maturities, terms, conditions, and interest
rates for loans made, purchased, sold, assigned, or committed pursuant to this
article;

(i) Commitment requirements for agricultural financing by lenders involving
money provided directly or indirectly by the authority; or

(j) Any other matters related to the duties or exercise of the authority's
powers or duties under this article.

Legislative History

Source: L. 81: Entire article added, p. 1738, � 1, effective June 19.