175.30 - USE OF ASSETS -- INSURED OR GUARANTEED LOANS TO BEGINNING OR DISPLACED FARMERS.
175.30 USE OF ASSETS -- INSURED OR GUARANTEED LOANS
TO BEGINNING OR DISPLACED FARMERS.
1. As used in this section:
a. "Beginning farmer" includes an individual or partnership
with a low or moderate net worth that became engaged in farming on or
after January 1, 1982.
b. "Displaced farmer" means a person who discontinued farming
on or after January 1, 1982, due to foreclosure or voluntary
liquidation for financial reasons, and who was actively engaged in
farming for at least one year prior to discontinuing farming.
2. The trust assets received under the application made pursuant
to section 175.28 other than cash shall be taken on proper transfer
or assignment from the department of human services to the authority
and administered as provided in this chapter. These funds may be
used for any of the purposes of this chapter, including but not
limited to costs of administration and insuring or guaranteeing
payment of all or a portion of loans made pursuant to this chapter.
3. a. Beginning August 11, 1983,{ the authority shall
establish an insurance or guarantee loan program with those funds
received pursuant to section 175.28 to the extent those funds were
not committed under a program authorized by this chapter on August
11, 1983.{ This program shall provide for the insuring or
guaranteeing of seventy-five percent of the amount of an agricultural
loan, not in excess of twenty-five thousand dollars, made to a
beginning or displaced farmer to provide operating moneys for farming
purposes in this state.
b. The authority shall insure or guarantee only one such loan
for each beginning or displaced farmer. The authority shall insure
or guarantee a loan for only one year but with the option to extend
the insurance or guarantee once for an additional year. The
authority shall not insure or guarantee a loan where the ratio of the
beginning or displaced farmer's liabilities, excluding the amount of
the loan, to assets is greater than three to one.
c. Provision shall be made in the insuring or guaranteeing of
a loan that only those funds set aside for this program as provided
in this subsection shall be used for the payment of all or a portion
of the loan insured or guaranteed. Provision shall also be made that
the authority shall pay under its insurance or guarantee seventy-five
percent of the actual amount of the default.
d. A mortgage lender which seeks to have a loan of the lender
insured or guaranteed under this program shall apply to the authority
for the insurance or guarantee pursuant to rules established by the
authority for this purpose. This program shall not obligate the
state, authority, or other agency except to the extent provided in
this subsection.
e. The authority shall define by rule what constitutes a loan
made to provide operating moneys which definition shall not include a
loan made for acquisition of agricultural land or agricultural
improvements, or the refinancing of an existing loan even if made for
operating purposes. Section History: Early Form
[C54, 58, 62, 66, 71, 73, 75, 77, 79, § 234.17; C81, § 175.30] Section History: Recent Form
83 Acts, ch 96, § 157, 159; 83 Acts, ch 109, § 1, 2, 3; 86 Acts,
ch 1078, § 1; 2009 Acts, ch 41, §68
{As determined by the Iowa family farm development authority