Section 10-520 - Agricultural loans.
§ 10-520. Agricultural loans.
(a) In general.-
(1) The Corporation may purchase and sell agricultural loans made by lenders, at the prices and on the terms and conditions that it determines.
(2) A lender may purchase and sell agricultural loans to the Corporation in accordance with this section.
(b) Terms.-
(1) The Corporation may make loans to and deposits with lenders at interest rates, terms, and conditions that it determines.
(2) A lender may borrow funds and accept deposits from the Corporation in accordance with this subtitle and the bylaws of the Corporation.
(3) The Corporation shall require that all proceeds of its loans to or deposits with lenders, or an equivalent amount, shall be used by the lenders to make agricultural loans, subject to terms and conditions that the Corporation determines.
(c) Insurance.-
(1) The Corporation may insure and reinsure agricultural loans made by lenders, subject to the terms, security provisions, and reserve requirements determined by the Corporation in accordance with the bylaws of the Corporation.
(2) Unless otherwise determined by the Corporation, agricultural loans shall be insured to the amount of 100% of the unpaid principal of and interest on each agricultural loan.
(d) Default.- An insured agricultural loan is in default when the holder of the agricultural loan requests the Corporation to pay insurance on the loan in accordance with any agreement with respect to the insurance executed in accordance with this section.
(e) Administration.- The Corporation may enter into agreements with any person, lender, or holder of an insured agricultural loan to:
(1) provide for the administration, application, and repayment of the agricultural loan; and
(2) establish the conditions for payment of insurance by the Corporation, and the servicing, suit on, or foreclosure of the agricultural loan.
(f) Limitation.-
(1) The aggregate value of all agricultural loans insured by the Corporation and outstanding at any one time may not exceed 20 times the total value of money, investments, properties, and other assets of the Corporation.
(2) Notwithstanding paragraph (1) of this subsection, the aggregate value of agricultural loans insured and outstanding may be further expanded by use of federal, State, or private loan insurance, reinsurance, or guarantees of which the Corporation is or shall become the beneficiary.
[An. Code 1957, art. 41, § 13-509; 2008, ch. 306, § 2.]