§ 122D-9. Insurance of agricultural loans.
§122D‑9. Insurance of agricultural loans.
(a) The Authority mayinsure and reinsure agricultural loans made by lending institutions, subject tothe terms, conditions, limitations, collateral and security provisions, andreserve requirements as shall be determined by the Authority in accordance withthe rules adopted by the Authority.
(b) Unless otherwisedetermined by the Authority, insurance of agricultural loans shall be in theamount of one hundred percent (100%) of the unpaid principal and interest oneach loan.
(c) An insuredagricultural loan shall be in default when the holder of such loan makesapplication to the Authority for payment of insurance on such loan stating thatsuch loan is in default in accordance with the terms of any agreement with respectto such insurance executed pursuant to this section.
(d) The Authority mayenter into agreements with any person, lending institution or holder of aninsured agricultural loan upon such terms as may be agreed upon between theAuthority and such person, lending institution, or holder, to provide for theadministration, applications therefor, repayment thereof, and to establish theconditions for payment of insurance by the Authority, and the servicing, suitupon, or foreclosure of insured agricultural loans.
(e) The aggregate valueof all agricultural loans insured by the Authority and outstanding at any onetime shall not exceed 20 times the total value of funds, investments,properties and other assets of the Authority except that this insurance may befurther expanded by use of federal, state or private loan insurance,reinsurance, or guarantees of which the Authority is or shall become thebeneficiary. (1985 (Reg. Sess., 1986), c. 1011, s. 1; 1989, c. 500,s. 109(e); 1989 (Reg. Sess., 1990), c. 1074, s. 32(b).)