175.33 - ADDITIONAL LOAN PROGRAM.
175.33 ADDITIONAL LOAN PROGRAM.
1. The authority may enter into a loan agreement with a beginning
farmer to finance in whole or in part the acquisition by construction
or purchase of agricultural land, agricultural improvements, or
depreciable agricultural property. The repayment obligation of the
beginning farmer 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 beginning
farmer. The loan agreement may contain terms and conditions as the
authority deems advisable.
2. 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. 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 beginning farmer.
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.
3. The authority may provide in the resolution authorizing the
issuance of the bonds or notes that the principal and interest shall
be limited obligations payable solely out of the revenues derived
from the debt obligation, collateral, or other security furnished by
or on behalf of the beginning farmer, and that the principal and
interest does not constitute an indebtedness of the authority or a
charge against its general credit or general fund.
4. 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 175.17, 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
[81 Acts, ch 68, § 1]