7 §974-A. State loans
Title 7: AGRICULTURE AND ANIMALS
Part 2: MARKETING, GRADING AND LABELING
Chapter 103: PRODUCTS CONTROLLED
Subchapter 10: POTATOES
Article 1-A: CENTRAL STORAGE, PACKING AND MARKETING HEADING: PL 1981, C. 513, §7 (NEW)
§974-A. State loans
1. State loans. State loans are subject to the following conditions.
A. No state loan for any project under this article, the total cost of which exceeds $50,000, may exceed 45% of the project cost and no state loan may be provided for such a project unless the applicant demonstrates a commitment of private funds of at least 10% of the total cost of the project, except that, in order to encourage the undertaking of cooperative projects by 2 or more farmers, no state loan for such a project may exceed 50% of the total cost of the project and no state loan may be provided unless the cooperating farmers as a group demonstrate a commitment of private funds of at least 5% of the total cost of the project. [1987, c. 319, §4 (NEW).]
B. No state loan for any project under this article, the total cost of which is $50,000 or less, may exceed 55% of the total cost of the project. [1987, c. 319, §4 (NEW).]
C. State loans shall be at the interest rate established pursuant to subsection 2. [1987, c. 319, §4 (NEW).]
D. Other terms and conditions prescribed by rule by the commissioner upon consultation with the board. [2005, c. 335, §4 (AMD).]
[ 2005, c. 335, §4 (AMD) .]
2. State loan interest rate. The interest rate for state loans is 5%. Loans current on April 21, 1988 must be renegotiated to an interest rate of 5%.
A fee for administrative costs, which must be at a rate set by rule by the commissioner upon consultation with the Potato Marketing Improvement Committee but that may not exceed 1% of the loan, must be charged on all loans made for projects, the total cost of which exceeds $50,000. This fee must be deposited in the Potato Marketing Improvement Fund.
[ 2001, c. 125, §4 (AMD) .]
SECTION HISTORY
1987, c. 319, §4 (NEW). 1987, c. 754, §2 (AMD). 1999, c. 127, §A14 (AMD). 2001, c. 125, §4 (AMD). 2005, c. 335, §4 (AMD).