Section 5610 - Minimum Requirements(a) The Beginning Farmer Program proposed by the Applicant must be for the purpose of providing loans to beginning farmers. The beginning farmer must: (1) Be a California resident;(2) Be at least 18 years of age;(3) Be a "First Time Farmer" as defined by IRC § 147(c)(2)(C);(4) Be the principal operator of the farm;(5) Use loan proceeds to purchase land within California or eligible breeder livestock, equipment/machinery and/or new construction or renovations for use in farming operations solely within California;(6) Only use the agricultural land, agricultural improvements and depreciable agricultural property for farming by the beginning farmer, his/her spouse, his/her minor children, or any combination thereof;(7) Not use loan proceeds to procure seed, feed, feeder stock, fertilizer, personal residence (in excess of the IRC exceptions) or as otherwise prohibited and/or limited by the IRC; and(8) Not exceed the lifetime aggregate amount of all loans for any borrower permitted by the IRC.(b) The Issuer must certify that each participating lender will: (1) Ensure that all of the proceeds of the Bond be used for the acquisition of farmland, construction or reconstruction of improvements or equipping of farmland, or the purchase of property of a character subject to the allowance for depreciation under IRC § 167 or other authorized costs.(2) Verify the accuracy of all certifications of each Beginning Farmer and all other information with respect to the Project or Beginning Farmer set forth in an Application.(3) Ensure that none of the proceeds of the Bond will be used to provide working capital or the financing of inventory, supplies or other ineligible operating expenses.(4) Prior to the approval of the issuance of the bond, not finance or otherwise advance moneys to the Beginning Farmer or any Related Person in connection with the Project which the Beginning Farmer expects to finance with proceeds of the Bond in any manner inconsistent with applicable prohibitions and/or limitations set forth in the IRC.Cal. Code Regs. Tit. 4, § 5610
1. New article 2 (sections 5610-5630) and section filed 7-10-2014 as an emergency; operative 7-10-2014 (Register 2014, No. 28). A Certificate of Compliance must be transmitted to OAL by 1-6-2015 or emergency language will be repealed by operation of law on the following day.
2. Certificate of Compliance as to 7-10-2014 order transmitted to OAL 11-26-2014 and filed 1-13-2015 (Register 2015, No. 3). Note: Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.
1. New article 2 (sections 5610-5630) and section filed 7-10-2014 as an emergency; operative 7/10/2014 (Register 2014, No. 28). A Certificate of Compliance must be transmitted to OAL by 1-6-2015 or emergency language will be repealed by operation of law on the following day.
2. Certificate of Compliance as to 7-10-2014 order transmitted to OAL 11-26-2014 and filed 1/13/2015 (Register 2015, No. 3).