§ 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 ‹ Prev All New York sections Next ›
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