[§155-5.6]  Loan guaranty; importantagricultural lands; agricultural and aquacultural loans.  (a)  From July 1,2009, the chairperson of the board of agriculture may guarantee loans made bycommercial lenders authorized to do business in this State, to agriculturalproducers for the purpose of developing and implementing agricultural projects;provided that the chairperson of the board of agriculture shall determine that:

(1)  The agricultural projects are located on landsdesignated as important agricultural lands pursuant to part III of chapter 205;and

(2)  The commercial lender has completed its duediligence in approving the loan, including ensuring adequate collateral.

The chairperson of the board of agriculture mayimpose other conditions that the chairperson deems reasonable to implement theloan guaranty.

(b)  In addition to the conditions that thechairperson of the board of agriculture may impose under subsection (a), anyloan guaranty made pursuant to this section shall meet the following conditions:

(1)  For any loan that finances operating costs, themaximum term of the loan shall be ten years;

(2)  For any loan that finances capital improvementcosts, the maximum term of the loan shall be twenty years;

(3)  The interest rate charged on any loan shall beone per cent below the commercial lender's prime rate for as long as the loanguaranty is in effect;

(4)  The loan guaranty may be up to eighty-five percent of the outstanding principal amount of any single loan, but shall notinclude any fees or accrued interest associated with the loan or itscollection; and

(5)  The total principal amount of the guaranteedportion of all loans outstanding at any time shall not exceed $2,500,000.

(c)  The department of agriculture may adoptrules pursuant to chapter 91 to effectuate this section.

(d)  As used in this section:

"Agricultural producer" means afarmer, cooperative association, or landowner who derives at least fifty percent of its gross income from agricultural or aquacultural activities.

"Agricultural project" means aproject relating to agricultural or aquacultural operations or capitalimprovements. [L 2008, c 233, §8]