175.13A - FINANCIAL ASSISTANCE FOR AGRICULTURAL PRODUCERS.
175.13A FINANCIAL ASSISTANCE FOR AGRICULTURAL
PRODUCERS.
1. In addition to the other programs authorized pursuant to this
chapter, the authority is authorized to provide any type of economic
assistance directly or indirectly to agricultural producers, and may
develop and implement programs including, but not limited to, the
making of loan guarantees, interest buy-downs, grants, secured or
unsecured direct loans, secondary market purchases of loans or
mortgages, loans to mortgage lenders, lending institutions, other
agricultural lenders as designated by rule of the authority, or
entities that provide funds or credits to such lenders or
institutions, to assist agricultural producers within the state. The
authority may exercise any of the powers granted to it in this
chapter in order to fulfill the goal of providing financial
assistance to agricultural producers. The authority may participate
in and cooperate with programs of any agency or instrumentality of
the federal government or with programs of any other state agency in
the administration of the programs to provide economic assistance to
agricultural producers.
2. The authority shall provide in any program developed and
implemented pursuant to this section that assistance shall be
provided only if the following criteria are satisfied:
a. The agricultural producer is a resident of the state.
b. The agricultural producer's land and farm operations are
located within the state.
c. Based upon the agricultural producer's net worth, cash
flow, debt-to-asset ratio, and other criteria as prescribed by rule
of the authority, the authority determines that without such
assistance the agricultural producer could not reasonably be expected
to be able to obtain, retain, restructure, or service loans or other
financing for operating expenses, cash flow requirements, or capital
acquisition and maintenance upon a reasonable and affordable basis.
d. Other criteria as the authority prescribes by rule.
3. The authority is granted all powers which are necessary or
useful to develop and implement programs and authorizations pursuant
to subsection 1. These powers include, but are not limited to:
a. All general powers stated in section 175.6.
b. The power to make or enter into or to require the making
or entry into of agreements of any type, with or by any person, that
are necessary to effect the purposes of this section. These
agreements may include, but are not limited to contracts, notes,
bonds, guarantees, mortgages, loan agreements, trust indentures,
reimbursement agreements, letters of credit or other liquidity or
credit enhancement agreements, reserve agreements, loan or mortgage
purchase agreements, buy- down agreements, grants, collateral or
security agreements, insurance contracts, or other similar documents.
The agreements may contain any terms and conditions which the
authority determines are reasonably necessary or useful to implement
the purposes of this section or which are usually included in
agreements or documents between private or public persons in similar
transactions.
c. The power to issue its bonds or notes and expend or commit
moneys for the purposes set forth in subsection 1. The authority may
provide in the documents authorizing its bonds or notes that their
principal and interest shall be limited obligations payable solely
out of the revenues derived from a specific program or source and do
not constitute an indebtedness of the authority or a charge against
the authority's general credit or general fund. Alternatively, the
authority may provide that the principal and interest of specified
bonds or notes do constitute an indebtedness of the authority and a
charge against the authority's general credit or general fund.
d. The power to participate in any federal or other state
program designed to assist agricultural producers or in related
federal or state programs.
e. The power to require submission of evidence satisfactory
to the authority of the receipt by an agricultural producer of the
assistance intended under a program developed and implemented
pursuant to this section. In that connection, the authority, through
its members, employees or agents, may inspect the books and records
of any person receiving or involved in the provision of assistance in
accordance with this section.
f. The power to establish by rule appropriate enforcement
provisions in order to assure compliance with this section and rules
adopted pursuant to this section, to seek the enforcement of such
rules and the terms of any agreement or document by decree of any
court of competent jurisdiction, and to require as a condition of
providing assistance pursuant to this section the consent of any
person receiving or involved in the provision of the assistance to
the jurisdiction of the courts of this state over any enforcement
proceeding.
g. The power to require, as a condition of the provision of
assistance pursuant to this section, any representations and
warranties on the part of any person receiving or involved in
providing such assistance that the authority determines are
reasonably necessary or useful to carry out the purposes of this
section. A person receiving or involved in providing assistance
pursuant to this section is liable to the authority for damages
suffered by the authority by reason of a misrepresentation or the
breach of a warranty.
4. All persons, public and private, are authorized to cooperate
with the authority and to participate in the programs developed and
implemented pursuant to this section and in accordance with the rules
of the authority.
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 175.19, subsection 4,
apply to bonds or notes issued pursuant to powers granted to the
authority under this section, to reserve funds, to appropriations,
and to the remedies of bondholders and noteholders except to the
extent that they are inconsistent with this section. Section History: Recent Form
86 Acts, ch 1026, § 5; 87 Acts, ch 52, § 5
Referred to in § 175.34