§ 4-A — Farm drain tile revolving loan program

§ 4-a. Farm drain tile revolving loan program. (1) Definitions. (a)\n"Farm drain tile project." A specific work or improvement that is\nundertaken by an agricultural producer for the construction or\nimprovement of drain tile for the purpose of enhancing farm fields.\n (b) "Local loan administrator." A farm credit bureau or member of the\nfarm credit system or a banking institution or non-governmental\norganization with a demonstrated ability to provide financial assistance\nand service to agricultural rural areas, that have entered into a master\nservicing agreement prescribed pursuant to subdivision two of this\nsection.\n (2) Master servicing agreement. (a) The state soil and water\nconservation committee ("committee") is hereby authorized to use the\nmonies held in the farm drain tile revolving loan fund to make advances\nto a local loan administrator that has entered into a written master\nservicing agreement prescribed by the committee pursuant to paragraph\n(b) of this subdivision.\n (b) The committee, in consultation with the comptroller, shall\nprescribe a master servicing agreement to be executed by the committee\nand local loan administrators. Such agreement shall provide that: (i)\nany advances made to a local loan administrator shall be used solely for\nthe purpose of providing loans to agricultural producers for undertaking\nfarm drain tile projects; (ii) the total amount of loans made to any\nsingle agricultural producer shall not exceed fifty thousand dollars per\nannum; (iii) the term of any loan shall not exceed ten years and equal\npayments of principal payable no less frequently than annually shall be\nrequired to be made on such loan during the term such loan is\noutstanding which payments will liquidate the entire principal balance\nof the loan over its term; (iv) the local loan administrator is required\nto pay to the committee for deposit into the farm drain tile revolving\nloan fund all repayments including interest, if any, received from any\nagricultural producers on account of such loan, except for that portion\npermitted to be retained by the local loan administrator as a fee\npursuant to the master servicing agreement. The master servicing\nagreement shall also set forth: (i) the form of any note and security\nagreement to be executed by the agricultural producer in connection with\nany loan; (ii) the rate of interest, if any, to be charged on any loan;\n(iii) the amount of any fee to be retained by the local loan\nadministrator for servicing any loan; (iv) the form of application\nrequired to be completed by an agricultural producer for any loan; (v)\nthe form of requisition and certification to be required from a local\nloan administrator to obtain an advance of funds from the committee;\n(vi) any other conditions to be imposed upon an agricultural producer as\na condition of receiving a loan; (vii) the responsibilities to be\nperformed by the local loan administrator in connection with reviewing,\napproving and servicing the loan and the circumstances under which the\ncommittee may terminate a master servicing agreement; (viii) conditions\nnecessary to insure prompt closing on loans for which funds are\nadvanced, including payment of interest of funds from the time advanced\nuntil utilized; and (ix) such other requirements as the committee may\nfrom time to time establish by rules and regulations consistent with the\npurposes of this section.\n (3) (a) The committee shall, subject to the availability of funds as\nappropriated by the legislature, advance from the farm drain tile\nrevolving loan fund to a local loan administrator the amount of funds\nrequested in any requisition within fifteen business days after receipt\nof all of the following: a completed requisition for an advance of\nfunds; copies of any applications and any supporting documentation to\nwhich such requisition pertains; and a certification from the local loan\nadministrator with respect to such requisition in addition to any other\nrepresentation and statement required by the committee. The\ncertification from the local loan administrator shall state that: (i)\nthe loan administrator has performed its responsibilities in connection\nwith review and approval of applications to which such requisition\npertains, (ii) to the best of the local loan administrator's knowledge\nthe loans, to which the advances pertain, comply with the master\nservicing agreement and the provisions of this section, and (iii) the\nborrowers have demonstrated their ability to make the repayments\nrequired under the loan. In the event that funds are not available or\nthe committee determines that the requisition, application or\ncertification is defective, it shall so notify the local loan\nadministrator within fifteen business days after receipt of the\nrequisition.\n (b) The committee shall establish criteria for prioritizing loan\napplications in the event that the requisitions submitted to the\ncommittee by one or more local loan administrators exceed the amount\nthen available for the purposes of this section. In determining\npriority, the committee shall take into account: (i) whether the farm\ndrain tile project to which the application pertains is the most cost\neffective approach to enable the agricultural producer to construct or\nimprove farm drain tile on the farm; (ii) whether the agricultural\nproducer making application lacks the financial resources to undertake\nthe farm drain tile project without obtaining a loan pursuant to this\nsection; and (iii) such other factors as the committee deems relevant.\nIn applying the criteria to be utilized for prioritizing loans, the\ncommittee shall be entitled to rely on the information contained in the\ncopies of the applications submitted with the requisition.\n (4) Examination by comptroller. The comptroller, or his or her legally\nauthorized representative, is hereby authorized and empowered from time\nto time to examine the books and accounts of the committee relating to\nthe farm drain tile fund, and from time to time, to examine the books\nand accounts of any local loan administrator which has received advances\nfrom such fund pursuant to this section, but only insofar as those books\nand accounts relate to such advances and to the local loan\nadministrator's compliance with the master servicing agreement entered\ninto pursuant to this section.\n (5) Establishment of fund. (a) There is hereby created and established\nin the committee a revolving loan fund to be known as the "farm drain\ntile revolving loan fund."\n (b) There shall be paid into such farm drain tile revolving loan fund\n(i) any moneys appropriated and made available by the state for the\npurposes of such fund, (ii) notwithstanding the provisions of the state\nfinance law or any other provision of law, any moneys which the\ncommittee shall receive in repayment of advances made from such fund,\nand (iii) any other moneys which may be made available to the committee\nfor the purpose of such fund from any other source or sources.\n (c) All moneys paid into the fund from repayments of loans authorized\nby subdivision three of this section shall continue to be made available\nfor the purpose of providing loans pursuant to such subdivision.\n (d) Any moneys held in such farm drain tile revolving loan fund not\nrequired for immediate disbursement may be invested, at the discretion\nof the committee, in obligations of the state or the United States\ngovernment or obligations the principal and interest of which are\nguaranteed by the state or the United States government. Any income or\ninterest earned by, or increment to, such farm drain tile revolving loan\nfund shall be added to the moneys held in such fund for the purposes\nherein provided.\n (6) Rules and regulations. The committee is empowered to promulgate\nsuch rules and regulations and to prescribe such forms as it shall deem\nnecessary to effectuate the purposes of this section.\n