6-09.11 Financial Assistance for Family Farmers
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<![CDATA[CHAPTER 6-09.11FINANCIAL ASSISTANCE FOR FAMILY FARMERS6-09.11-01. Definitions. In this chapter, unless the context or subject matter otherwiserequires:1."Family farm" means agricultural real estate operated and owned or leased by a<br>farmer, or other organization authorized to own or lease land used for farming or<br>ranching under chapter 10-06.1, where the majority of the labor necessary to<br>operate the farm is performed by the farmer and the farmer's family, if any.2."Farmer" means a resident of North Dakota whose principal occupation is or will be<br>the production of an agricultural commodity or livestock on a family farm if granted a<br>loan.6-09.11-02. Industrial commission - Powers and duties - Bonds. Except as providedin this chapter, the industrial commission may exercise the powers and perform the duties set<br>forth in chapter 4-36 to the extent necessary to administer this chapter. The commission may<br>issue bonds under chapter 4-36 as is necessary to provide sufficient funds to make loans to<br>lenders for the purposes of this chapter.6-09.11-03. Loans - Participation by the Bank of North Dakota.1.The Bank of North Dakota may make available an appropriate amount of funds to<br>purchase participation interests in loans made by financial institutions for the<br>purposes as set forth in section 6-09.11-04.Interest charged on a participationinterest purchased by the Bank under this section may not be greater than one<br>percent less than the Bank's base rate as in effect from time to time and may float.<br>However, the interest rate may not exceed eleven percent during the course of the<br>loan. The Bank may charge for necessary and reasonable fees as determined by<br>the industrial commission.2.The amount of a participation interest purchased by the Bank under this section may<br>not be greater than the lesser of an amount determined by the Bank or ninety<br>percent of the loan amount.6-09.11-04. Loans to farmers - Purposes. The following purposes are eligible to befunded by bond proceeds or loan participations under this chapter:1.Purchasing agricultural real estate.2.Constructing, repairing, altering, or adding to any farm buildings on agricultural real<br>estate owned or purchased by the farmer.3.Making permanent improvements to agricultural real estate owned or purchased by<br>the farmer for the purpose of increasing the productive value of the land or<br>promoting conservation of the soil.4.Purchasing farm equipment.5.Purchasing livestock.6.Paying off and discharging mortgages, encumbrances, and other charges or liens<br>against or on the agricultural real or personal property owned or purchased by the<br>farmer.7.Purchasing the farmer's home-quarter pursuant to chapter 6-09.10.Page No. 18.Restructuring operating debt carryover.6-09.11-05. Loan applications. An applicant for a loan must meet all of the followingqualifications:1.The applicant is at least eighteen years of age.2.The applicant is a farmer.3.The applicant has had the farming experience and training necessary to enable the<br>applicant to operate a family farm and to make proper use of the proceeds of the<br>loan.4.The net worth of the applicant does not exceed an amount determined by the Bank<br>of North Dakota.6-09.11-06. Loan restrictions.1.A loan under this chapter may not be greater than the lesser of an amount<br>determined by the Bank of North Dakota or ninety percent of the appraised value of<br>the security given for the loan, with the actual percentage to be determined by the<br>Bank. The Bank may do all things and acts, may require such security, and may<br>establish additional terms and conditions as is determined necessary to purchase a<br>participation interest in a loan under this chapter.2.Except as otherwise provided:a.A loan under this chapter must be repayable in installments and may have a<br>term up to twenty years.b.All or part of a loan under this chapter may be repaid at any time, subject to<br>conditions set forth in the mortgage.6-09.11-07. Insurance requirements. The Bank of North Dakota and the originatingfinancial institution shall determine whether a borrower must obtain insurance on property<br>pledged as security for a loan under this chapter.6-09.11-08. Records. Every borrower shall keep records showing the financial conditionof the borrower's family farm.6-09.11-09. Postponement of repayment of principal. If the income of a borrower isreduced in any year due to causes beyond the borrower's control to the extent that the borrower<br>is unable to make a payment on a loan under this chapter, the Bank of North Dakota and the<br>originating lender may defer the payment of the principal sum due in that year and the term of the<br>loan may be extended for the period of deferment.6-09.11-10. Credit review board. Applicants for home-quarter purchases pursuant tochapter 6-09.10 shall initially apply to the credit review board and the credit review board shall<br>make recommendations regarding eligibility of the applicant and the feasibility of the loan<br>application.6-09.11-11. Rules. The industrial commission may adopt such rules and guidelines asare necessary to implement sections 6-09.11-01 through 6-09.11-09.Page No. 2Document Outlinechapter 6-09.11 financial assistance for family farmers]]>