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6-09.13 Agriculture Partnership in Assisting Community Expansion

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CHAPTER 6-09.13AGRICULTURE PARTNERSHIP IN ASSISTING COMMUNITY EXPANSION6-09.13-01. Definitions. In this chapter, unless the context or subject matter otherwiserequires:1.&quot;Agriculture partnership in assisting community expansion fund&quot; means a fund<br>established to buy down the interest rate on loans to on-farm businesses under this<br>chapter.2.&quot;Family farm&quot; 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 10-06.1.3.&quot;Farm business&quot; means any business conducted by the farmer or farmer's family,<br>which is integrated into the farm operation and is intended to supplement farm<br>income to allow the farmer to continue farming.It may include nontraditionalagricultural, manufacturing, processing, value-added processing, targeted service<br>industries, or other activities calculated to produce income.4.&quot;Farmer&quot; means a resident of North Dakota whose principal occupation is the<br>production of an agricultural commodity or livestock on a family farm.5.&quot;On-farm business&quot; means any farm business located on a family farm. If a farmer<br>can demonstrate compelling economic reasons for locating a business in a<br>community adjacent to the family farm and financial assistance under this chapter<br>will not give the farmer an unfair economic advantage over a similar non-farm<br>business, the business may qualify as on-farm.6-09.13-02. 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 6-09.13-03.2.The amount of a participation interest purchased by the Bank under this section<br>must be not less than fifty percent nor more than eighty percent of the loan amount.3.The Bank shall adopt rules to implement this chapter.6-09.13-03. Loans to farmers - Purposes - Eligible uses. The loan moneys receivedby a farmer under this chapter must be used for a farm business. Eligible uses are:1.Purchase of real property and equipment.2.Expansions.3.Working capital.4.Purchase of inventory.The moneys cannot be used to refinance any existing debt.6-09.13-04.Agriculture partnership in assisting community expansion fundestablished - Continuing appropriation. The agriculture partnership in assisting community<br>expansion fund is hereby established and is a revolving fund, and all moneys transferred into the<br>fund, interest upon fund moneys, and payments to the fund are hereby appropriated for the<br>purposes of section 6-09.13-05. After December 31, 1992, moneys may be transferred betweenPage No. 1this fund and the partnership in assisting community expansion fund established in section<br>6-09.14-02. This fund is not subject to section 54-44.1-11.6-09.13-05. Interest rate buydown. The Bank of North Dakota may use moneys in theagriculture partnership in assisting community expansion fund to reduce the interest rate on<br>loans made under this chapter.Page No. 2Document Outlinechapter 6-09.13 agriculture partnership in assisting community expansion