175.15 - PURCHASE OF LOANS.

        175.15  PURCHASE OF LOANS.
         1.  The authority may purchase and make advance commitments to
      purchase mortgage or secured loans from mortgage lenders at prices
      and upon terms and conditions as it determines.  However, the total
      purchase price for all mortgage or secured loans which the authority
      commits to purchase from a mortgage lender at any one time shall not
      exceed the total of the unpaid principal balances of the mortgage or
      secured loans purchased.  Mortgage lenders are authorized to sell
      mortgage or secured loans to the authority in accordance with the
      provisions of this section and the rules of the authority.
         2.  The authority shall require as a condition of purchase of
      mortgage or secured loans from mortgage lenders that the mortgage
      lenders certify that the mortgage or secured loans purchased are
      loans made to beginning farmers.  Mortgage or secured loans to be
      made by mortgage lenders shall have terms and conditions as the
      authority prescribes by rule.  The authority may make a commitment to
      purchase mortgage or secured loans from mortgage lenders in advance
      of the time the loans are made by mortgage lenders.  The authority
      shall require as a condition of a commitment that mortgage lenders
      certify in writing that all mortgage or secured loans represented by
      the commitment will be made to beginning farmers and that the
      mortgage lender will comply with other authority specifications.
         3.  The authority shall require the submission to it by each
      mortgage lender from which the authority has purchased loans of
      evidence satisfactory to the authority of the making of mortgage or
      secured loans to beginning farmers as required by this section and in
      that connection may, through its members, employees or agents,
      inspect the books and records of a mortgage lender.
         4.  Compliance by a mortgage lender with the terms of its
      agreement with the authority with respect to the making of mortgage
      or secured loans to beginning farmers may be enforced by decree of
      any district court of this state.  The authority may require as a
      condition of purchase of mortgage or secured loans from any national
      banking association or federally chartered savings and loan
      association the consent of the association to the jurisdiction of
      courts of this state over any enforcement proceeding.  The authority
      may also require as a condition of the purchase of mortgage or
      secured loans from a mortgage lender agreement by the mortgage lender
      to the payment of penalties to the authority for violation by the
      mortgage lender of its agreement with the authority and the penalties
      shall be recoverable at the suit of the authority.
         5.  The authority may require as a condition of purchase of a
      mortgage or secured loan from a mortgage lender that the mortgage
      lender make representations and warranties the authority requires.  A
      mortgage lender is liable to the authority for damages suffered by
      the authority by reason of the untruth of a representation or the
      breach of a warranty and, in the event that a representation proves
      to be untrue when made or in the event of a breach of warranty, the
      mortgage lender shall, at the option of the authority, repurchase the
      mortgage or secured loan for the original purchase price adjusted for
      amounts subsequently paid on it, as the authority determines.
         6.  The authority shall require the recording of an assignment of
      a mortgage loan purchased by it from a mortgage lender and is not
      required to notify the mortgagor of its purchase of the mortgage
      loan.  The authority is not required to inspect or take possession of
      the mortgage documents if the mortgage lender from which the mortgage
      loan is purchased enters into a contract to service the mortgage loan
      and account to the authority for it.
         7.  If a provision of this section is inconsistent with another
      provision of law of this state governing mortgage lenders, the
      provision of this section controls for the purposes of this section.
      
         Section History: Early Form
         [C81, § 175.15]
         Referred to in § 175.27, 175.34