[§163D-33]  Installment purchase agreements;interest payment.  (a)  The legislature may authorize the corporation tonegotiate installment purchase agreements for the acquisition of specificparcels of land for the protection of agricultural lands, public land banking,or the promotion of farm ownership and diversified agriculture.  Theinstallment purchase agreements shall be structured pursuant to therequirements of the Internal Revenue Code of 1986, as amended, to deferrecognition of capital gain until all of the purchase price is paid.  Theagreement shall include provisions for the periodic payment of a portion of thepurchase price with the remainder of the purchase price paid at the end of theterm of the agreement.  The legislature shall authorize the purchase of United States Treasury zero coupon bonds for the installment purchase agreement with amaturity date equal to the term of the agreement.

(b)  The interest rate paid on the installmentpurchase agreement shall be not less than the interest rate on the zero couponbonds at the closing of the agreement or eight per cent, whichever is higher.

(c)  The corporation shall make semi-annualinterest payments on the outstanding balance of the installment purchaseagreement purchase price. [L 2008, c 234, pt of §6]