[§155-6.5]  Cooperation in loans by the
department.  (a)  The department of agriculture, for a fee, may underwrite
and service loans for cooperating private lenders and government loan programs
providing loan funds to qualified farmers and qualified food manufacturers. 
All fees shall be deposited into the agricultural loan reserve fund.



(b)  Loans underwritten or serviced under this
section shall not be subject to the restrictions in section 155-3.



(c)  Loans underwritten or serviced under this
section shall be limited by sections 155-1 and 155-9 to 155-12; provided that
class "E" loans to food manufacturers shall not be subject to section
155-10.  No class "D" and "F" loans shall be underwritten
or serviced under this section.



(d)  Loans underwritten or serviced under this
section shall bear simple interest on the unpaid principal balance charged on
the actual amount disbursed to the borrower.  The interest rate on class
"A", "B", "C", and "E" loans shall be
at a rate of two per cent above the prime rate or at a rate of eight and
one-half per cent a year, whichever is less.  For purposes of this subsection,
the prime rate shall be determined on January 1 and July 1 of each year and
shall be the prime rate charged by the two largest banks in the State identified
by the department of commerce and consumer affairs.  If the prime rates of the
two largest banks are different, the higher prime rate of the two shall apply.



The director of commerce and consumer affairs
shall publish a notice statewide pursuant to section 1-28.5 to specify the
prime rate.



(e)  For loans underwritten or serviced under
this section, funds shall be disbursed in accordance with rules adopted by the
department pursuant to chapter 91.



(f)  The department and the cooperating lender
may charge a filing fee for any application made under this section.  However,
the applicant shall pay for any actual expenses incurred.



(g)  The department and the cooperating lender
may mutually agree on underwriting criteria, functions, responsibilities, and
fees for loan underwriting and loan servicing, by way of a memorandum of
agreement.  The memorandum of agreement shall be approved by the chairperson of
the board of agriculture. [L 1999, c 294, §2; am L 2000, c 51, §8]