La. Admin. Code tit. 7 § III-129

Current through Register Vol. 50, No. 11, November 20, 2024

Section III-129 - Definition of Program

A. Under the Act, the issuer is authorized to issue revenue bonds to alleviate the serious shortage of capital and credit available for investment in agriculture, for domestic and export purposes, at interest rates within the financial means of persons engaged in agricultural production and agricultural exports. The Act also authorizes the issuer:

1. to purchase or make contracts to purchase agricultural loans made by lenders to borrowers; and

2. to make loans or contract to make loans to and deposits with certain lending institutions, who will in turn make agricultural loans to borrowers with the proceeds.

B. The issuer, pursuant to its powers under the Act has authorized the issuance of bonds and intends to use a portion of the proceeds of the bonds:

1. to purchase without recourse from lenders certain agricultural loans, which are to be originated by the lenders and purchased by the issuer pursuant to agreements and which shall be secured by mortgages and with either a letter of credit or a guaranty; and

2. to enter into repurchase obligations with certain banks to enable such banks to in turn make agricultural loans to borrowers. Under the Act, the issuer, prior to the purchase or contract to purchase agricultural loans from lenders, and prior to making or contracting to make agricultural loans to certain national banks who will in turn make loans to borrowers, is required to promulgate certain rules and regulations with regard to its loan program. These rules and regulations are intended to comply with this requirement of the Act and with the Administrative Procedure Act, Louisiana Revised Statutes of 1950, as amended, Section 49:950 et seq.

La. Admin. Code tit. 7, § III-129

Promulgated by the Department of Agriculture and Forestry, Agricultural Finance Authority, LR 17:165 (February 1991).

AUTHORITY NOTE: Promulgated in accordance with R.S. 3:266(4).