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175-15
175.15 PURCHASE OF LOANS.
1. The authority may purchase and make advance commitments to
purchase mortgage or secured loans from mortgage lenders at prices
and upon terms and conditions as it determines. However, the total
purchase price for all mortgage or secured loans which the authority
commits to purchase from a mortgage lender at any one time shall not
exceed the total of the unpaid principal balances of the mortgage or
secured loans purchased. Mortgage lenders are authorized to sell
mortgage or secured loans to the authority in accordance with the
provisions of this section and the rules of the authority.
2. The authority shall require as a condition of purchase of
mortgage or secured loans from mortgage lenders that the mortgage
lenders certify that the mortgage or secured loans purchased are
loans made to beginning farmers. Mortgage or secured loans to be
made by mortgage lenders shall have terms and conditions as the
authority prescribes by rule. The authority may make a commitment to
purchase mortgage or secured loans from mortgage lenders in advance
of the time the loans are made by mortgage lenders. The authority
shall require as a condition of a commitment that mortgage lenders
certify in writing that all mortgage or secured loans represented by
the commitment will be made to beginning farmers and that the
mortgage lender will comply with other authority specifications.
3. The authority shall require the submission to it by each
mortgage lender from which the authority has purchased loans of
evidence satisfactory to the authority of the making of mortgage or
secured loans to beginning farmers as required by this section and in
that connection may, through its members, employees or agents,
inspect the books and records of a mortgage lender.
4. Compliance by a mortgage lender with the terms of its
agreement with the authority with respect to the making of mortgage
or secured loans to beginning farmers may be enforced by decree of
any district court of this state. The authority may require as a
condition of purchase of mortgage or secured loans from any national
banking association or federally chartered savings and loan
association the consent of the association to the jurisdiction of
courts of this state over any enforcement proceeding. The authority
may also require as a condition of the purchase of mortgage or
secured loans from a mortgage lender agreement by the mortgage lender
to the payment of penalties to the authority for violation by the
mortgage lender of its agreement with the authority and the penalties
shall be recoverable at the suit of the authority.
5. The authority may require as a condition of purchase of a
mortgage or secured loan from a mortgage lender that the mortgage
lender make representations and warranties the authority requires. A
mortgage lender is liable to the authority for damages suffered by
the authority by reason of the untruth of a representation or the
breach of a warranty and, in the event that a representation proves
to be untrue when made or in the event of a breach of warranty, the
mortgage lender shall, at the option of the authority, repurchase the
mortgage or secured loan for the original purchase price adjusted for
amounts subsequently paid on it, as the authority determines.
6. The authority shall require the recording of an assignment of
a mortgage loan purchased by it from a mortgage lender and is not
required to notify the mortgagor of its purchase of the mortgage
loan. The authority is not required to inspect or take possession of
the mortgage documents if the mortgage lender from which the mortgage
loan is purchased enters into a contract to service the mortgage loan
and account to the authority for it.
7. If a provision of this section is inconsistent with another
provision of law of this state governing mortgage lenders, the
provision of this section controls for the purposes of this section.
Section History: Early Form
[C81, § 175.15]
Referred to in § 175.27, 175.34
