175.34 - SOIL CONSERVATION LOAN PROGRAM.
175.34 SOIL CONSERVATION LOAN PROGRAM.
1. The authority shall establish a soil conservation loan program
to facilitate the implementation of permanent soil and water
conservation practices and the acquisition of conservation farm
equipment for agricultural land within the state by making financing
for this program available to credit worthy owners or operators of
agricultural land within the state. The authority may provide this
financing under the program by direct loans, loans to lenders, and
the purchase of loans in the manner provided in sections 175.13
through 175.15, except that the financing pursuant to these sections
shall not be limited to beginning farmers. In addition under the
program, the authority may enter into a loan agreement with the owner
or operator to finance in whole or in part the implementation of
permanent soil and water conservation practices and the acquisition
of conservation farm equipment for agricultural land in the state.
The repayment obligation of the owner or operator may be unsecured,
or may be secured by a mortgage or security agreement or by other
security as the authority deems advisable, and may be evidenced by
one or more notes of the owner or operator. The loan agreement may
contain terms and conditions as the authority deems advisable.
2. In addition to the other conditions and criteria established
for the soil conservation loan program, the following apply:
a. Loans made pursuant to the soil conservation loan program
shall only be made to the owner or operator of a farm located within
the state for which a conservation plan has been developed by the
soil and water conservation district and the project for which the
loan is to be made has been approved by the district. However, loans
under the soil conservation loan program for implementation of a
permanent soil and water conservation practice shall not be remitted
to the applicant until the applicant provides evidence that payment
of the permanent soil and water conservation practice is arranged for
and the soil and water conservation district certifies that the
practice is completed and approved.
b. The program and financing provided pursuant to the program
shall not be limited to beginning farmers but shall be available to
all credit worthy owners or operators of agricultural land within the
state, however in providing financing for the acquisition of
conservation farm equipment preference shall be given those owners or
operators of agricultural land who have the lower net worths.
c. The division of soil conservation or any other state
agency and the commissioners and staffs of the soil and water
conservation districts may provide technical and financial assistance
to the authority or in connection with the soil conservation loan
program to assure the success of this program.
d. The amount of financing that may be provided under the
soil conservation loan program shall not exceed the cost of
implementing the permanent soil and water conservation practice or of
acquiring the conservation farm equipment which the owner or operator
is seeking to implement or acquire less any amounts the owner or
operator will receive in public cost-sharing funds under chapter 161A
or other provisions of state or federal law for the implementation or
acquisition. However, the maximum amount of loans that an owner or
operator may receive pursuant to this program shall not exceed fifty
thousand dollars for permanent soil and water conservation practices
and fifty thousand dollars for conservation farm equipment.
e. If a cooperator of a soil and water conservation district
qualifies for cost sharing under a state soil conservation cost share
program, the cooperator is eligible for a loan request. In granting
these requests the authority shall give preference to those with the
lower net worths.
3. The authority may issue its bonds and notes for the purposes
set forth in subsection 1 and may enter into a lending agreement or
purchase agreement with one or more bondholders or noteholders
containing the terms and conditions of the repayment of and the
security for the bonds or notes. Bonds and notes must be authorized
by a resolution of the authority. However, the authority shall not
have a total principal amount of bonds and notes outstanding under
this section at any time in excess of twenty-five percent of the
limitation on the amount of bonds and notes at any time specified in
section 175.17, subsection 1. The authority and the bondholders or
noteholders may enter into an agreement to provide for any of the
following:
a. That the proceeds of the bonds and notes and investments
thereon may be received, held, and disbursed by the bondholders or
noteholders, or by a trustee or agent designated by the authority.
b. That the bondholders or noteholders or a trustee or agent
designated by the authority, may collect, invest, and apply the
amounts payable under the loan agreement or any other security
instrument securing the debt obligation of the owner or operator of
the agricultural land.
c. That the bondholders or noteholders may enforce the
remedies provided in the loan agreement or security instrument on
their own behalf without the appointment or designation of a trustee
and if there is a default in the principal of or interest on the
bonds or notes or in the performance of any agreement contained
therein, the payment or performance may be enforced in accordance
with the provisions contained therein.
d. That if there is a default in the payment of the principal
or interest on a mortgage or security instrument or a violation of an
agreement contained in the mortgage or security instrument, the
mortgage or security instrument may be foreclosed or enforced and any
collateral sold under proceedings or actions permitted by law and a
trustee under the mortgage or security agreement or the holder of any
bonds or notes secured thereby may become a purchaser if it is the
highest bidder.
e. Other terms and conditions.
4. The authority may provide in the resolution authorizing the
issuance of the bonds or notes that the principal and interest are
limited obligations payable solely out of the revenues derived from
the debt obligation, collateral, or other security furnished by or on
behalf of the owner or operator of the agricultural land, and that
the principal and interest do not constitute an indebtedness of the
authority or a charge against its general credit or general fund.
5. The powers granted the authority under this section are in
addition to other powers contained in this chapter. All other
provisions of this chapter, except section 175.12, section 175.17,
subsection 9 and section 175.19, subsection 4, apply to bonds or
notes issued pursuant to and powers granted to the authority under
this section except to the extent that they are inconsistent with
this section. Section History: Early Form
[82 Acts, ch 1243, § 1] Section History: Recent Form
83 Acts, ch 93, § 2; 87 Acts, ch 23, § 5