(i) "First mortgage" means first and superior lienson farm lands except as hereinafter provided, the fee simple title to which isin the proposed borrower;
(ii) "Farm land," "farm" and"farms" includes:
(A) Lands used principally for raising agricultural products;
(B) Lands used principally for dairying purposes; and
(C) Lands or ranches used principally for livestock purposes.
(iii) "Board" means the state loan and investmentboard;
(iv) "This act" means W.S. 11-34-101 through11-34-305.
11-34-102. Rural credits; establishment and administration; compositionof board; power to sue and be sued; officers.
(a) For the purpose of fostering and encouraging agriculture,dairying and livestock raising in Wyoming and the development and improvementof farm lands, there is hereby created and established a system of ruralcredits to be administered by the state loan and investment board.
(b) The board of land commissioners is hereby constituted thestate loan and investment board. The board may sue and be sued in the name ofthe state loan and investment board in the courts of this state and in no otherjurisdiction on any mortgage, contract of sale or lease issued by the board.The governor is president of the board but in his absence from any meeting one(1) of the members may act as president pro tempore and preside at meetings.The director of the office of state lands and investments is the chiefexecutive officer of the board, and the deputy director of the office of statelands and investments is deputy chief executive officer.
11-34-103. Powers and duties generally; employees and financialmatters; reports to governor.
(a) The board shall establish a system of farm loans, andforeclose or renew any installment payment of the loans as provided by thisact. The board may provide for its office, necessary furniture, fixtures,stationery and supplies, adopt rules and regulations proper and necessary forthe conduct of its business and receive and approve applications for farmloans. All monies received shall be delivered to the state treasurer to be creditedto the funds from which originally drawn. The board may acquire and dispose ofproperty, real and personal, as necessary or convenient for the transaction ofits business and accept assignments of interests in any real or personalproperty which are taken as additional security or collateral to preexistentdebts or approved loans.
(b) The board shall employ assistants, clerks, appraisers andother employees as necessary to conduct its business, fix the fees, costs andcharges which shall be credited to the general fund to cover the expenses ofthe board in making loans and define the duties of the officers, agents andemployees of the board. All officers and employees shall be under the directionand authority of the board in all matters not inconsistent with this act. Theboard shall, as required by W.S. 9-2-1014, report to the governor such generalinformation and recommendations as to the board seem proper. The board shallexercise all incidental power as necessary to carry out this act.
11-34-104. Seal; design.
The board shall obtain and keep a seal. Thedesign of the seal shall be a circle within which appears in the center theword "Seal." Between the lower and upper edges of the circle,properly divided, shall appear the words "Wyoming State Loan andInvestment Board," "State of Wyoming."
11-34-105. Chief executive officer; powers and duties.
(a) The director of the office of state lands and investmentsis the chief executive officer under the direction of the board and has generalsupervision of the business and employees of the board.
(b) The director of the office of state lands and investmentsshall:
(i) Keep all books of account of the board;
(ii) Receive, collect and promptly pay over to the statetreasurer all monies that come into his possession;
(iii) Keep in his care and custody copies of all promissorynotes, mortgages and other securities or evidences of indebtedness andmuniments of title acquired or received by the board for monies loaned on realestate;
(iv) Transmit to the state treasurer the original notes andmortgages at the time of the disbursements of monies by the state treasurer.The security shall be kept by the state treasurer as a record and evidence ofmonies disbursed by the treasurer by virtue of this act;
(v) Render monthly statements to the board of the transactionsof his office;
(vi) Keep the seal of the board and affix the seal with hisattestation to all instruments or papers whenever required;
(vii) Keep a record of the proceedings of the board and suchbooks and records as are necessary for the conduct of the business of hisoffice;
(viii) Submit regular reports to the board setting forth in detailthe status of all farm and irrigation loans which are delinquent as to thepayment of any installment of principal or interest due; and
(ix) Do and perform such other acts as required by the board.
11-34-106. Legal advisor.
The attorney general is the legal advisorof the board and its officers.
11-34-107. Quorum; loan; votes required; record.
A majority of the board constitutes aquorum. No loan shall be made except upon the affirmative vote of not less thanthree (3) of the members, and the records of the meeting shall show whichmembers voted to approve the loan.
11-34-108. Loans on lands subject to preexisting liens; effect.
The board may loan money on and take assecurity farm lands subject to liens, charges or assessments for drainage,reclamation or irrigation purposes, payable in installments, not due at thetime of making the loan, and the mortgage taken to secure the loan shall,notwithstanding the liens, charges or assessments, be deemed a first mortgagewithin the meaning of this act. The amount of the liens, charges or assessmentsshall be considered by the board in determining the amount to be loaned on thefarm lands.
11-34-109. Purposes for which loans authorized.
(a) Loans may be made for the following agriculture relatedpurposes and no other:
(i) To provide for the purchase of farm lands;
(ii) To provide for the purchase of equipment as defined by theboard, fertilizers and livestock necessary for the proper and reasonableoperation of the mortgaged farm lands;
(iii) To provide for buildings and other improvements, as definedby the board, of farm lands;
(iv) To liquidate indebtedness of the owner of the land to bemortgaged;
(v) Repealed By Laws 2008, Ch. 42, 2.
11-34-110. Limitations on borrowers; due on sale clause; sale ofmortgaged land.
(a) No loan shall be made to any person who is not at the timeor shortly to become engaged in the cultivation and development of the farmland mortgaged.
(b) Loans shall be made only to qualified Wyoming electors orto a corporation if a majority of the corporation's outstanding shares areowned beneficially or of record by qualified Wyoming electors.
(c) Every mortgage shall contain a due on sale clause which maybe exercised at the option of the board. The board may permit a mortgage to beassumed by a purchaser who is otherwise qualified to receive a loan under thisact, or by the heirs of a deceased mortgagor.
11-34-111. Application for loan; form; contents; priority ofapplications.
(a) Every applicant for a loan under this act shall apply on aform prescribed by the board. The applicant shall state the object to which theproceeds of the loan will be applied and shall furnish such other informationas required by the board.
(b) The state loan and investment board is authorized topromulgate rules and regulations to establish criteria for determining thepriority in which farm loan applications will be considered. The criteria forestablishing priority will include, but are not limited to, an applicant'sneed, financial net worth, earning capacity and the ability to repay the loan.
11-34-112. Application for loan; filing; appraisal of land;consideration of written report.
Before any mortgage loan is made by theboard, the loan application shall be filed with the director of the office ofstate lands and investments who shall make, or cause to be made, an appraisaland written report upon the land offered as security for the loan. No loanshall be made unless the written report is filed with the director of theoffice of state lands and investments and considered, approved and authorizedby the unanimous consent of all members of the board present at the meeting atwhich the loan is considered.
11-34-113. Terms and conditions of loans.
(a) The board shall make loans only upon the following termsand conditions:
(i) The loan shall be secured by a duly recorded first orsecond mortgage as approved by the board on the farm lands within this state;
(ii) Every mortgage shall contain an agreement providing forrepayment of the entire amount of the loan and interest upon a certain date orin several specified payments, or on an amortization plan of annual orsemiannual installments so computed as to pay the interest on the loanaccording to terms of the mortgage and such amounts to be applied on theprincipal as will terminate the debt within an agreed period of not less thanfive (5) years nor more than thirty (30) years. The method of repayment is atthe option of the board.
(b) After five (5) years from date of the mortgage, additionalpayments for part or all of the principal may be made on the annual orsemiannual payment date under such rules and regulations as the board mayprescribe. On the application of the borrower the board may provide in themortgage for the payment of interest only during the first five (5) years and thereafterfor the payment of both interest and principal on the amortization plan. Anyloan may be paid in full before the expiration of five (5) years upon paymentof a ten dollar ($10.00) fee to be paid into the general fund. Any loan paid infull after five (5) years from the date thereof, the ten dollars ($10.00) feeshall not be collected.
(c) Repealed by Laws 1987, ch. 242, 2.
(d) Notwithstanding the loan term limitation specified inparagraph (a)(ii) of this section, the board may reamortize farm loan paymentsover an additional number of years which together with the years remaining onthe original term shall create a new term not to exceed thirty (30) years, atthe same interest rate as that in effect at the time of reamortization for loansbeing made under W.S. 11-34-101 through 11-34-130, when in the judgment of theboard the reduced payments resulting from reamortization of the loan willprovide adequate financial benefit to assure with reasonable certainty theultimate repayment of the loan. Any borrower requesting reamortization shallhave the burden of showing that reamortization will significantly improve thefinancial viability of the agricultural operation. No loan shall bereamortized if, in the sole judgment of the board, the borrower is in soundfinancial condition and reamortization is not necessary to secure repayment ofthe loan, or if reamortization will not provide sufficient financial benefit toavoid the imminent failure of the borrower's operation. Nothing in this sectionshall be construed as authorizing the reamortization of irrigation loans.
(e) Repealed by Laws 1987, ch. 242, 2.
(f) Repealed by Laws 1987, ch. 242, 2.
(g) Repealed by Laws 1987, ch. 242, 2.
(h) Repealed By Laws 2008, Ch. 42, 2.
(j) Notwithstanding the terms and conditions specified inparagraph (a)(ii) of this section, the board may make loans for the purpose ofenhancing or restoring livestock numbers in the state. Loans made under thissubsection shall be for a term not to exceed seven (7) years.
11-34-114. Limitation on loans; percentages of appraised value.
(a) No loan secured by a first mortgage shall exceed seventypercent (70%) of the appraised value of the land with the necessary existingimprovements, as ascertained and fixed by the board except as provided by W.S.11-34-117. If a loan is secured by a second mortgage, the sum of the first andsecond mortgages shall not exceed eighty percent (80%) of the appraised valueof the land and improvements and the balance due on the loans secured by thefirst or second mortgage shall not exceed eight hundred thousand dollars($800,000.00). The appraisal shall be made by the state loan and investmentboard, with the advice of two (2) residents of the immediate locality in whichthe loan is being considered.
(b) Repealed By Laws 2008, Ch. 42, 2.
(c) No loan made pursuant to W.S. 11-34-113(j) shall exceedseventy percent (70%) of the appraised value of the security. Loans may besecured by a first or second mortgage on the borrower's real estate as approvedby the board and shall be aggregated with all other loans for purposes ofdetermining compliance with the loan percentages specified in subsection (a) ofthis section.
11-34-115. Minimum and maximum amount of loans.
Theamount of loans to any one (1) borrower shall not be less than ten thousanddollars ($10,000.00) nor more than eight hundred thousand dollars ($800,000.00)if all loans to the borrower are made for the purposes of purchasing farm landsor other purposes as defined by W.S. 11-34-109(a)(i) through (iv).
11-34-116. Agreement to use loans for purposes specified;reappraisement and additional loan.
(a) Every borrower who is granted a loan under this act shallenter into an agreement with the board that if the whole or any portion of hisloan is expended for purposes other than those specified in his originalapplication, or if the borrower is in default in respect to any condition orcovenant of the mortgage, or in case the mortgagor, his heirs or assigns abandonthe land for one (1) year, or if the board at any time believes that the loanis not adequately secured by reason of any mismanagement, waste or neglect ofthe land, the loan at the option of the board shall become due and payableforthwith. The board may permit the loan to be used for any purpose specifiedin W.S. 11-34-109.
(b) A reappraisement may be permitted at any time by the boardand an additional loan may be granted as the reappraisal may warrant.
11-34-117. Rates of interest; length of loan; amount.
(a) The board may set rates of interest on all farm loansaccording to current interest rates but not less than four percent (4%) normore than ten percent (10%) whether the money is loaned upon the amortizationplan or otherwise except that loans pursuant to W.S. 11-34-113(j) shall beloaned for a fixed period of up to seven (7) years with a set interest rateequal to seventy-five percent (75%) of the lowest current rate set by the boardfor farm loans other than loans under W.S. 11-34-113(j).
(b) A farm loan to a beginning agriculture producer shall bethe lowest of eight per cent (8%) or the yield on a ten (10) year United Statestreasury bond. This loan rate shall be fixed for a period of ten (10) years. Atthe end of the ten (10) year period the interest rate shall be the current ratefor loans as established under subsection (a) of this section.
(c) The total value of loans outstanding pursuant to subsection(b) of this section shall not exceed ten percent (10%) of the total amount of farmloan investment authorized by W.S. 11-34-129.
(d) The total value of loans outstanding pursuant to W.S.11-34-113(j) shall not exceed twenty percent (20%) of the total amount of farmloan investment authorized by W.S. 11-34-129. The amount loaned to any one (1)borrower shall not be more than three hundred thousand dollars ($300,000.00).
11-34-118. Refinancing delinquent loans; payment of costs; additionalfee.
The board, whenever it deems necessary forthe better protection of permanent funds of the state invested in farm loans,may refinance any delinquent farm mortgage loan and reamortize the loan overnot more than thirty (30) years from the date of refinancing. All costs ofrefinancing the loan, including the cost of having the abstract brought down todate, shall be paid by the mortgagor and no loan shall be refinanced where itappears refinancing will jeopardize the collection of the loan. An additionalfee of one percent (1%) of the amount of the reamortized loan shall be paid byeach mortgagor to the board to be credited to the loss reserve account asprovided by W.S. 11-34-202(e).
11-34-119. Ultra vires acts of agent.
No loan or mortgage securing the loan shallbe impaired or invalidated by any act of any agent of the board in excess ofhis powers.
11-34-120. Mortgages taken by board; control and disposition ofproperty.
(a) All mortgages and accompanying promissory note or notestaken by the board for monies loaned shall run to state loan and investmentboard as mortgagee or payee, and all titles to property taken by the boardshall run to the board as grantee. The board may control, manage, lease anddispose of the property, subject to the following:
(i) The board may lease any or all property for oil and gas fora primary term up to ten (10) years and as long thereafter as oil or gas isproduced in paying quantities and extend the term of existing oil and gasleases in good standing for as long as oil or gas is produced in payingquantities and for coal and other mineral purposes for terms not exceeding ten(10) years, with the preferential right in each coal or other mineral lessee torenew the lease for successive periods of ten (10) years each;
(ii) The board may make and establish rules and regulationsgoverning the issuance of mineral leases and covering the conduct ofdevelopment and mining operations to be carried on thereunder;
(iii) Mineral leases may be issued upon monthly or annual minimumrental payment basis as fixed by the board, with payments annually applied againstany royalty as shall accrue for the same lease year by the terms of the lease,which royalty, as to lands leased for oil or gas shall not be less than fivepercent (5%) of all oil and gas produced and saved from and not used inoperations on the lands under the lease, and royalty of not less than fivecents ($.05) per ton on coal produced from the lands under any lease for coalpurposes, the royalty to be paid on mine run of coal.
(b) No mineral lease is assignable or transferable except withwritten consent of the board. It shall require the lessee's full compliancewith all rules and regulations adopted by the board and compliance with allterms of the lease. All mineral leases shall be separate and distinct from eachlease of the land for grazing or agricultural purposes. Rules and regulationsadopted by the board shall provide for joint use of the lands for grazing andagricultural or mineral purposes without undue interference by the lesseesunder any class of leases with lessees under any other class. The board, onbehalf of the state and its lessee in any mineral lease may join in theinterest of conservation and greater ultimate recovery of oil and gas, in fairand equitable cooperative or unit plans of development or operation of oil and gaspools, with the United States government and its lessees or permittees, orothers, and the board may modify and change any terms and conditions of any oiland gas lease as mutually agreed by the lessor and lessee to conform to theterms of any lease to the cooperative or unit plan and to effectuate properoperations thereunder. The changes may include extension of the term of yearsapplicable to any lease for the full period of time during which thecooperative or unit plan may remain in effect.
(c) When a cooperative or unit agreement is terminated orceases to be effective as to lands upon which there is no production of oil orgas, the lease covering the lands shall remain in effect for two (2) years fromthe date the lands ceased to be subject to the agreement, or for the remaininglength of the term of the original lease, whichever is greater, and so longthereafter as oil or gas is produced from the lands in accordance with therequirements of the original lease.
(d) The terms of any lease issued under this section for landon which actual drilling operations were commenced prior to the end of itsprimary term and are being diligently prosecuted at that time shall be extendedfor one (1) year and so long thereafter as oil or gas is produced in payingquantities.
(e) If land acquired by the board and upon which improvementsfor mineral operations and other improvements have been made, are sold as toboth surface and mineral rights, or if the lands are leased for minerals toother than the owner of the mineral improvements, the purchaser or new lesseeshall pay the owner of the improvements the fair value thereof at a mutuallyagreed price. If agreement cannot be promptly reached the price shall be fixedby appraisement under the direction of the board. As used in this subsection"improvements" means improvements which are used or useful andnecessary for subsequent operation of the land for mineral purposes and theprice shall include the fair value of the work previously done in the developmentof the property if it is of practical use in future mineral operation. No welldrilled on the land for oil or gas which does not produce either in commercialquantities, and no shaft, tunnel or drift from which coal or other mineralshave been substantially exhausted shall be considered improvements for thepurposes of this subsection.
(f) The board may sell or otherwise dispose of property at aprice not less than seventy-five percent (75%) of the appraised value and uponterms determined by the board which shall adopt rules and regulations governingsuch sales. When land is sold which was acquired by the board through theforeclosure of any farm loan mortgage provided for by this act, the board shallnot reserve any part of, or interest in, the mineral estate. When landotherwise acquired by the board is sold, the board may reserve all or any partof the mineral content of the land and the right to use so much of the surfaceof the land as it considers convenient or necessary in connection with mineraloperations thereon, together with all needed rights of ingress and egress, butthe board in each case shall appropriately provide for indemnification of thesurface owner against all surface damages caused by mineral operations on theland.
(g) The board may lease for agricultural and grazing purposesany lands acquired by it on such terms and conditions as it prescribes andadopt rules and regulations it considers necessary in facilitating the leases.
(h) Revenue received by the board under this section fromagricultural, grazing and mineral leases of lands acquired by foreclosure shallbe credited to the loss reserve account as provided by W.S. 11-34-202(e).
11-34-121. Mortgagor to pay for recording loan papers; title insuranceor abstract required; deposit; additional fee.
The mortgagor shall pay for the recordingof his mortgage and other papers connected with the loan which may be required.He shall furnish to the board at his own expense a mortgagee's title insurancepolicy in the full amount of the mortgage, issued by a title insurance companyauthorized to do business in Wyoming in a form acceptable to the board,reflecting merchantable fee title in mortgagor, or in lieu thereof an abstractof title certified by a bonded abstracter qualified to prepare abstracts underthe laws of Wyoming, under such rules as the board may prescribe. The mortgagorshall deposit with the board before his application is considered, one hundreddollars ($100.00), the unused portion of which, if his loan is not granted,shall be returned to him, but if his loan is granted, the amount shall be paidinto the loss reserve account as provided by W.S. 11-34-202(e). An additionalfee of one percent (1%) of the loan closed shall be paid by each mortgagor tothe board. The revenues produced by this fee shall be credited to the lossreserve account as provided by W.S. 11-34-202(e).
11-34-122. Release of mortgage.
When the mortgagor or his successor ininterest has fully paid any mortgage, the board shall furnish him with a properrelease of the mortgage executed by the president of the board and attested bythe director of the office of state lands and investments with the seal of theboard thereon, and the mortgage papers belonging to the loan including abstractof title and insurance policies assigned, shall be returned to the mortgagor orsuccessor in interest.
11-34-123. Foreclosure proceedings; duty of attorney general; deed inlieu of foreclosure.
(a) Any foreclosure of any mortgage provided for by this actshall be made in the usual manner, either by civil action or by advertisementas the board may direct. In cases of foreclosure the attorney general shallrender all services needed in connection with the foreclosure proceedings, andthe costs, fees and expenses may be taxed in like manner and to the same effectas if the state of Wyoming were a natural person. Payment of proceeds uponforeclosure shall be made in accordance with W.S. 34-4-113. All moniesreceived by the state from sale of the land acquired by foreclosure or byredemption of land sold on foreclosure, in excess of the amount owing to theappropriate permanent fund account and the interest due thereon, shall becredited to the loss reserve account as provided by W.S. 11-34-202(e). Theboard may extend the time of payment of any interest or installment payment dueon any farm loan for as long as the board deems proper, and distribute thedefaulted payments including interest, over undue payments in a manner andunder terms the board deems just, each loan to be judged on its own meritswithout regard to any general rule. It is the intention of this section toauthorize the board to consider and determine whether any mortgages executed byvirtue of this act shall be foreclosed or renewed, with or without penalty, butno renewal shall extend beyond the due date of the original loan or anyextension of the term by reamortization authorized by W.S. 11-34-113(d).
(b) Repealed By Laws 2010, Ch. 69, 204.
(c) Notwithstanding other provisions of this section the stateloan and investment board by unanimous vote may accept a deed in lieu offoreclosure, provided:
(i) The board determines any remaining liability is notcollectible; and
(ii) Any loss to any permanent fund resulting from theacceptance of the deed in lieu of foreclosure is restored as provided by W.S.11-34-202(f).
11-34-124. Interest on defaulted payments and unpaid taxes; agreementto pay; insurance required; use of proceeds; foreclosure permitted.
Every borrower shall pay interest ondefaulted payments at a rate to be determined by the board not to exceed a tenpercent (10%) annual percentage rate. By express covenant in his mortgage deedthe borrower shall agree to pay when due all interest, taxes, liens, judgments,assessments and insurance lawfully assessed against the mortgaged land. Taxes,liens, judgments, assessments or insurance not paid when due and paid by themortgagee become a part of the mortgage debt and shall bear interest at a rateto be determined by the board not to exceed a ten percent (10%) annualpercentage rate. Every borrower shall insure buildings on the lands mortgagedto the satisfaction of the board. Insurance shall be made payable to themortgagee as its interest may appear at the time of loss, and at the option ofthe mortgagee subject to the general regulations of the board. Insuranceproceeds received may be used to pay for reconstruction of the buildingsdestroyed. Nothing in this section shall prevent the commencement offoreclosure proceedings at any time upon the default of principal or interestor failure to pay any taxes, judgments, assessments, liens or insurance.
11-34-125. Repealed by Laws 1980, ch. 49, 3.
11-34-126. Exemption of property of board from taxation; exceptions.
(a) Except as otherwise provided by subsection (b) of thissection, all mortgages, real estate and other property owned by the board isexempt from all general taxes, state, county and municipal. For the purpose ofthis act the board is deemed to be the owner of any property from the date itis bid in by the board at a foreclosure sale.
(b) If the board becomes the owner of the real estate and otherproperty before the fourth Monday in June of the current year, it shall beliable for any property taxes lawfully assessed against the property, exceptfor any taxes imposed under W.S. 21-13-102, 21-13-201 and 21-13-303. Thecounty assessor shall list and assess the property for taxation purposes, andthe state loan and investment board shall pay any tax due for the year in itsentirety prior to December 31 of that year and any other year in which theboard owns the property. If redemption is made of the property at any timeduring the year in which the state loan and investment board has paid theproperty taxes due, the person redeeming the property shall be liable to thestate loan and investment board for any taxes paid. There is appropriated fromthe loss reserve account as provided by W.S. 11-34-202 to the state loan andinvestment board a sum sufficient to pay the property taxes authorized by thissection.
11-34-127. Surety bonds; generally.
Whenever a bond or undertaking is requiredby this act or by the board to be given, it shall be held to mean a surety bondfurnished by a surety company authorized and qualified to do business in thisstate. Such bonds shall run to the state loan and investment board and the formthereof shall be approved by the attorney general.
11-34-128. Surety bonds; payment of cost.
The cost of surety bonds provided by thisact, furnished by the officers or employees of said board, shall be a part ofthe general expense of the administration and paid by the board.
11-34-129. Investment of permanent funds.
The state treasurer, with the approval ofthe board, is directed to invest and keep invested in farm loans a sum not toexceed two hundred seventy-five million dollars ($275,000,000.00) of any statepermanent funds available for investment, including loans already made andoutstanding, as the funds become available in the treasurer's office forinvestment in loans approved by the board.
11-34-130. Trespass upon lands owned by board prohibited; penalties.
Whoever knowingly and willfully commits atrespass upon lands owned by the board or upon lands mortgaged to the board,either by cutting down or destroying or carrying away any timber or woodstanding or growing thereon or by grazing, mowing, cutting or removing any hay,grass or growing or matured crops thereon or who, without right, injures orremoves any building, fence, improvements or other property belonging orappertaining to the lands, or unlawfully occupies, plows or cultivates any ofthe land, or aids or abets any trespass or injury, is guilty of a misdemeanorand shall be fined not less than twenty-five dollars ($25.00) or more than fivehundred dollars ($500.00), imprisoned not less than thirty (30) days or morethan six (6) months, or both.
11-34-131. Wyoming transportation enterprise account; use thereof.
(a) The transportation enterprise account is established to beused by the state loan and investment board to finance transportation projectsof benefit to the general public as defined in this section. The transportationenterprise account shall be administered by the state loan and investmentboard, subject to recommendation and appropriation by the legislature, for thepurpose of fostering transportation investments in projects of benefit to thegeneral public within the state. The state loan and investment board shall:
(i) Adopt rules and regulations to implement the purposes ofthis section, considering other funds available including department oftransportation funds; and
(ii) Distribute funds to eligible grantees only, pursuant toappropriation of funds from the transportation enterprise fund by the legislature,subsection (c) of this section, federal requirements and rules and regulationsof the state loan and investment board.
(b) The transportation enterprise account shall receive moniesfrom mineral royalty payments as provided in W.S. 9-4-607(a). All repayments ofprincipal and interest to the state in connection with loans made under thissection shall be deposited into the transportation enterprise account.
(c) The board may make grants or loans to public entities forthe purpose of enhancing transportation in this state. Eligible uses of themonies in the fund shall include capital investments for public transportationand improvement and maintenance of airline service and facilities.
(d) In adopting rules and regulations under paragraph (a)(i) ofthis section, the board shall provide for the allocation of funds for capitalinvestments for public transportation and for purposes eligible undersubsection (c) of this section, with investment income received under W.S.9-4-607(b) being allocated to purposes eligible under subsection (c) of thissection.
(e) The state loan and investment board shall annually auditthe transportation trust fund created under W.S. 9-4-607(a) to determine theeffects of inflation on investment earnings.
ARTICLE 2 - ISSUANCE OF BONDS AND DISPOSITION OF REVENUES
(a) The board may issue its nonnegotiable debenture bonds insuch numbers and amounts as necessary to be deposited with the state treasurer.The state treasurer shall accept the bonds in lieu of the promissory notes andmortgages held by the board as security for the investment of permanent fundsof Wyoming in mortgages upon real estate.
(b) One (1) bond shall be issued for each note, in the amountof the balance due upon the principal of each note to be deposited with thestate treasurer. The bond shall bear interest at the same rate as theunderlying note and be secured by the original security pledged for the paymentto the state of the note for which the bond is issued or substituted, or by anysecurity or property taken by the board in addition to or in lieu of theoriginal security. Each bond is due and payable on the date when the note forwhich the bond was issued or substituted is due and payable.
11-34-202. Revenue to be credited to an account; use thereof;disposition of excess.
(a) Except as provided by subsection (e) of this section or asotherwise provided by law, the state loan and investment board shall transmitany revenue received to the state treasurer to be credited to a separateaccount for the purposes specified in W.S. 21-15-106(a).
(b) Repealed by Laws 1981, ch 44, 2.
(c) Repealed by Laws 1981, ch 44, 2.
(d) Following a general fund appropriation by the legislaturefor administrative expenses, amounts expended pursuant to the appropriationshall be transferred monthly from the account provided by subsection (a) ofthis section to the general fund as provided by W.S. 9-4-205(b) for the highwayfund and the special revenue fund in certain instances. Revenue currently inthe account formerly provided for by W.S. 11-34-202(a), (b) and (c), as thosesubsections existed prior to the creation of this subsection, may be expendedfor purposes formerly authorized until July 1, 1982 at which time the revenuewithin the account shall be credited to the account provided by subsection (a)of this section.
(e) Revenue and proceeds received by the board for deposit inthe loss reserve account pursuant to W.S. 11-34-118, 11-34-120(h), 11-34-121,11-34-123(a) and 11-34-302(e) shall be transmitted to the state treasurer fordeposit to the credit of the loss reserve account. These funds shall be usedfor the purposes specified in subsection (f) of this section and W.S. 11-34-126and to pay the administrative and legal expenses of the board in makingcollections and foreclosing mortgages. If at the end of any fiscal year theamount accumulated in the loss reserve account exceeds five percent (5%) of thetotal amount of permanent funds of the state invested in farm and irrigationloans, the amount in excess of the five percent (5%) shall be transferred andcredited to the general fund.
(f) If, as a result of default in the payment of any farm orirrigation loan, there occurs a nonrecoverable loss either to the corpus of, orinterest due to, any permanent fund of the state, the board shall restore theloss to the permanent fund account entitled thereto using any funds availablein the loss reserve account created by subsection (e) of this section. If thefunds in the loss reserve account are insufficient to restore the full amountof the loss, the board shall submit a detailed report of the loss to thelegislature and shall request an appropriation to restore the balance of theloss to the permanent fund account entitled thereto.
11-34-203. Report to governor; separate statement required.
The state loan and investment board shallreport to the governor as required by W.S. 9-2-1014, and include a separatestatement of all loans obtained from the state treasurer by the issuance ofbonds as herein provided, and showing the disposition of the funds.
ARTICLE 3 - LOANS
11-34-301. Water development projects; nonnegotiable debentures; loansto small projects.
(a) The state loan and investment board may issue itsnonnegotiable debenture bonds for a sum not in excess of thirty-three andone-third percent (33 1/3%) or twenty million dollars ($20,000,000.00),whichever is less, of the permanent funds of Wyoming which shall be availablefor loan by the board for the purpose set forth in W.S. 11-34-302. The statetreasurer, upon request of the state loan and investment board, shall investand keep invested a sum not to exceed thirty-three and one-third percent (331/3%) or sixty million dollars ($60,000,000.00), whichever is less, of thepermanent funds of Wyoming in the bonds of the board. One-half (1/2) of thissum shall be used for loans to small water development projects. No single loanto an individual under a small water development project shall exceed onehundred fifty thousand dollars ($150,000.00). The bonds shall be delivered tothe state treasurer and bear interest not to exceed eight percent (8%) nor lessthan four percent (4%) per annum, at the discretion of the board, payable on orbefore forty (40) years from the date of issuance.
(b) Loans shall be made only to qualified Wyoming electors orto a corporation if a majority of the corporation's outstanding shares areowned beneficially or of record by qualified Wyoming electors.
11-34-302. Water development projects; loans authorized; terms andconditions; assistance by water development commission.
(a) The board may make loans to court approved water districts,to agencies of state and local government, persons, corporations andassociations in this state, all hereinafter referred to as the borrower, tofinance the construction of water development projects. If any portion of thewater developed as a result of the construction of any project authorized bythe state loan and investment board is to be utilized for other thanagricultural, recreational or municipal purposes, the loan authorized by thestate loan and investment board may be limited to that portion of theconstruction cost apportioned to the development of the water to be utilizedfor agricultural, recreational or municipal purposes. For any water storageproject loans used for other than agricultural, recreational or municipalpurposes, the state loan and investment board may set the interest rate inexcess of four percent (4%). The state loan and investment board shall make nocommitments of state funds for such projects in excess of the funds previouslyapproved by the legislature.
(b) The state loan and investment board shall require suchsecurity as it deems advisable. The state loan and investment board may accepta second mortgage as security if the loan is otherwise adequately secured.Loans shall be at a rate of interest not to exceed six percent (6%) per annumnor less than four percent (4%) per annum and shall be for a term not to exceedforty (40) years. Upon application of the borrower the board may provide forpayment of interest only during any period in which the governor has declared thata drought or other emergency exists in this state, and thereafter for thepayment of both interest and principal on the amortization plan. The stateloan and investment board may make such other rules and regulations governingthe making of loans as it deems advisable.
(c) Upon request of the state loan and investment board, theWyoming water development commission shall provide technical assistance to theboard in reviewing loan applications and water project development.
(d) Repealed by Laws 1988, ch. 79, 11.
(e) A fee of one percent (1%) of each loan made under thissection shall be paid by the borrower to the board to be credited to the lossreserve account as provided by W.S. 11-34-202(e).
11-34-303. Area redevelopment programs; terms; rules and regulations;fund source.
(a) The state loan and investment board, with the advice of theWyoming business council created by W.S. 9-12-103, may negotiate and make loansto departments and agencies of state and local government, persons, corporationsand associations in this state, not to exceed the aggregate sum of threehundred thousand dollars ($300,000.00) at a reasonable rate of interest for aterm not to exceed forty (40) years for repayment. Each loan shall not exceedten percent (10%) of the cost of any project within a redevelopment area forindustrial or commercial usage under the area redevelopment program providedfor in chapter 28 of title 42 of the Federal Public Health and Welfare Act, 42U.S.C. 3161 and 3162.
(b) The state loan and investment board, shall make such rulesand regulations concerning loans under this section as it deems advisable butthe board shall require a mortgage or other lien upon all of the property ofthe project.
(c) Loans provided for by this section shall be made from thepermanent funds of Wyoming.
11-34-304. Lamb processing facility; loans authorized; maximum amount;interest and terms of loans.
The board may negotiate and make a loan orloans to persons, firms and corporations of this state for the purpose ofdeveloping a lamb processing facility within the state which will serve tomaintain or enhance the value or marketability of Wyoming agricultural productsand promote the economic development of Wyoming agriculture, but not to exceedthree million five hundred thousand dollars ($3,500,000.00) to any one (1)person, firm or corporation. The loan or loans shall be at a rate of interestnot less than seven percent (7%) nor more than twelve percent (12%) per annum,and shall be for a term not to exceed twenty (20) years. No loan shall exceedeighty percent (80%) of the cost of any project. Principal and interestpayments shall be deposited in the general fund.
11-34-305. Lamb processing facility; approval and regulation of loans;security.
The board shall approve the location, plansand specifications of projects submitted by loan applicants and make rules andregulations concerning the loans authorized under W.S. 11-34-304 as it deemsnecessary, but all loans shall be secured by a first mortgage upon all theproperty of the project. The board may require such additional security, as itdeems necessary, for the loans from the persons, firms, limited partnershipsand corporations receiving the loans.
(i) "First mortgage" means first and superior lienson farm lands except as hereinafter provided, the fee simple title to which isin the proposed borrower;
(ii) "Farm land," "farm" and"farms" includes:
(A) Lands used principally for raising agricultural products;
(B) Lands used principally for dairying purposes; and
(C) Lands or ranches used principally for livestock purposes.
(iii) "Board" means the state loan and investmentboard;
(iv) "This act" means W.S. 11-34-101 through11-34-305.
11-34-102. Rural credits; establishment and administration; compositionof board; power to sue and be sued; officers.
(a) For the purpose of fostering and encouraging agriculture,dairying and livestock raising in Wyoming and the development and improvementof farm lands, there is hereby created and established a system of ruralcredits to be administered by the state loan and investment board.
(b) The board of land commissioners is hereby constituted thestate loan and investment board. The board may sue and be sued in the name ofthe state loan and investment board in the courts of this state and in no otherjurisdiction on any mortgage, contract of sale or lease issued by the board.The governor is president of the board but in his absence from any meeting one(1) of the members may act as president pro tempore and preside at meetings.The director of the office of state lands and investments is the chiefexecutive officer of the board, and the deputy director of the office of statelands and investments is deputy chief executive officer.
11-34-103. Powers and duties generally; employees and financialmatters; reports to governor.
(a) The board shall establish a system of farm loans, andforeclose or renew any installment payment of the loans as provided by thisact. The board may provide for its office, necessary furniture, fixtures,stationery and supplies, adopt rules and regulations proper and necessary forthe conduct of its business and receive and approve applications for farmloans. All monies received shall be delivered to the state treasurer to be creditedto the funds from which originally drawn. The board may acquire and dispose ofproperty, real and personal, as necessary or convenient for the transaction ofits business and accept assignments of interests in any real or personalproperty which are taken as additional security or collateral to preexistentdebts or approved loans.
(b) The board shall employ assistants, clerks, appraisers andother employees as necessary to conduct its business, fix the fees, costs andcharges which shall be credited to the general fund to cover the expenses ofthe board in making loans and define the duties of the officers, agents andemployees of the board. All officers and employees shall be under the directionand authority of the board in all matters not inconsistent with this act. Theboard shall, as required by W.S. 9-2-1014, report to the governor such generalinformation and recommendations as to the board seem proper. The board shallexercise all incidental power as necessary to carry out this act.
11-34-104. Seal; design.
The board shall obtain and keep a seal. Thedesign of the seal shall be a circle within which appears in the center theword "Seal." Between the lower and upper edges of the circle,properly divided, shall appear the words "Wyoming State Loan andInvestment Board," "State of Wyoming."
11-34-105. Chief executive officer; powers and duties.
(a) The director of the office of state lands and investmentsis the chief executive officer under the direction of the board and has generalsupervision of the business and employees of the board.
(b) The director of the office of state lands and investmentsshall:
(i) Keep all books of account of the board;
(ii) Receive, collect and promptly pay over to the statetreasurer all monies that come into his possession;
(iii) Keep in his care and custody copies of all promissorynotes, mortgages and other securities or evidences of indebtedness andmuniments of title acquired or received by the board for monies loaned on realestate;
(iv) Transmit to the state treasurer the original notes andmortgages at the time of the disbursements of monies by the state treasurer.The security shall be kept by the state treasurer as a record and evidence ofmonies disbursed by the treasurer by virtue of this act;
(v) Render monthly statements to the board of the transactionsof his office;
(vi) Keep the seal of the board and affix the seal with hisattestation to all instruments or papers whenever required;
(vii) Keep a record of the proceedings of the board and suchbooks and records as are necessary for the conduct of the business of hisoffice;
(viii) Submit regular reports to the board setting forth in detailthe status of all farm and irrigation loans which are delinquent as to thepayment of any installment of principal or interest due; and
(ix) Do and perform such other acts as required by the board.
11-34-106. Legal advisor.
The attorney general is the legal advisorof the board and its officers.
11-34-107. Quorum; loan; votes required; record.
A majority of the board constitutes aquorum. No loan shall be made except upon the affirmative vote of not less thanthree (3) of the members, and the records of the meeting shall show whichmembers voted to approve the loan.
11-34-108. Loans on lands subject to preexisting liens; effect.
The board may loan money on and take assecurity farm lands subject to liens, charges or assessments for drainage,reclamation or irrigation purposes, payable in installments, not due at thetime of making the loan, and the mortgage taken to secure the loan shall,notwithstanding the liens, charges or assessments, be deemed a first mortgagewithin the meaning of this act. The amount of the liens, charges or assessmentsshall be considered by the board in determining the amount to be loaned on thefarm lands.
11-34-109. Purposes for which loans authorized.
(a) Loans may be made for the following agriculture relatedpurposes and no other:
(i) To provide for the purchase of farm lands;
(ii) To provide for the purchase of equipment as defined by theboard, fertilizers and livestock necessary for the proper and reasonableoperation of the mortgaged farm lands;
(iii) To provide for buildings and other improvements, as definedby the board, of farm lands;
(iv) To liquidate indebtedness of the owner of the land to bemortgaged;
(v) Repealed By Laws 2008, Ch. 42, 2.
11-34-110. Limitations on borrowers; due on sale clause; sale ofmortgaged land.
(a) No loan shall be made to any person who is not at the timeor shortly to become engaged in the cultivation and development of the farmland mortgaged.
(b) Loans shall be made only to qualified Wyoming electors orto a corporation if a majority of the corporation's outstanding shares areowned beneficially or of record by qualified Wyoming electors.
(c) Every mortgage shall contain a due on sale clause which maybe exercised at the option of the board. The board may permit a mortgage to beassumed by a purchaser who is otherwise qualified to receive a loan under thisact, or by the heirs of a deceased mortgagor.
11-34-111. Application for loan; form; contents; priority ofapplications.
(a) Every applicant for a loan under this act shall apply on aform prescribed by the board. The applicant shall state the object to which theproceeds of the loan will be applied and shall furnish such other informationas required by the board.
(b) The state loan and investment board is authorized topromulgate rules and regulations to establish criteria for determining thepriority in which farm loan applications will be considered. The criteria forestablishing priority will include, but are not limited to, an applicant'sneed, financial net worth, earning capacity and the ability to repay the loan.
11-34-112. Application for loan; filing; appraisal of land;consideration of written report.
Before any mortgage loan is made by theboard, the loan application shall be filed with the director of the office ofstate lands and investments who shall make, or cause to be made, an appraisaland written report upon the land offered as security for the loan. No loanshall be made unless the written report is filed with the director of theoffice of state lands and investments and considered, approved and authorizedby the unanimous consent of all members of the board present at the meeting atwhich the loan is considered.
11-34-113. Terms and conditions of loans.
(a) The board shall make loans only upon the following termsand conditions:
(i) The loan shall be secured by a duly recorded first orsecond mortgage as approved by the board on the farm lands within this state;
(ii) Every mortgage shall contain an agreement providing forrepayment of the entire amount of the loan and interest upon a certain date orin several specified payments, or on an amortization plan of annual orsemiannual installments so computed as to pay the interest on the loanaccording to terms of the mortgage and such amounts to be applied on theprincipal as will terminate the debt within an agreed period of not less thanfive (5) years nor more than thirty (30) years. The method of repayment is atthe option of the board.
(b) After five (5) years from date of the mortgage, additionalpayments for part or all of the principal may be made on the annual orsemiannual payment date under such rules and regulations as the board mayprescribe. On the application of the borrower the board may provide in themortgage for the payment of interest only during the first five (5) years and thereafterfor the payment of both interest and principal on the amortization plan. Anyloan may be paid in full before the expiration of five (5) years upon paymentof a ten dollar ($10.00) fee to be paid into the general fund. Any loan paid infull after five (5) years from the date thereof, the ten dollars ($10.00) feeshall not be collected.
(c) Repealed by Laws 1987, ch. 242, 2.
(d) Notwithstanding the loan term limitation specified inparagraph (a)(ii) of this section, the board may reamortize farm loan paymentsover an additional number of years which together with the years remaining onthe original term shall create a new term not to exceed thirty (30) years, atthe same interest rate as that in effect at the time of reamortization for loansbeing made under W.S. 11-34-101 through 11-34-130, when in the judgment of theboard the reduced payments resulting from reamortization of the loan willprovide adequate financial benefit to assure with reasonable certainty theultimate repayment of the loan. Any borrower requesting reamortization shallhave the burden of showing that reamortization will significantly improve thefinancial viability of the agricultural operation. No loan shall bereamortized if, in the sole judgment of the board, the borrower is in soundfinancial condition and reamortization is not necessary to secure repayment ofthe loan, or if reamortization will not provide sufficient financial benefit toavoid the imminent failure of the borrower's operation. Nothing in this sectionshall be construed as authorizing the reamortization of irrigation loans.
(e) Repealed by Laws 1987, ch. 242, 2.
(f) Repealed by Laws 1987, ch. 242, 2.
(g) Repealed by Laws 1987, ch. 242, 2.
(h) Repealed By Laws 2008, Ch. 42, 2.
(j) Notwithstanding the terms and conditions specified inparagraph (a)(ii) of this section, the board may make loans for the purpose ofenhancing or restoring livestock numbers in the state. Loans made under thissubsection shall be for a term not to exceed seven (7) years.
11-34-114. Limitation on loans; percentages of appraised value.
(a) No loan secured by a first mortgage shall exceed seventypercent (70%) of the appraised value of the land with the necessary existingimprovements, as ascertained and fixed by the board except as provided by W.S.11-34-117. If a loan is secured by a second mortgage, the sum of the first andsecond mortgages shall not exceed eighty percent (80%) of the appraised valueof the land and improvements and the balance due on the loans secured by thefirst or second mortgage shall not exceed eight hundred thousand dollars($800,000.00). The appraisal shall be made by the state loan and investmentboard, with the advice of two (2) residents of the immediate locality in whichthe loan is being considered.
(b) Repealed By Laws 2008, Ch. 42, 2.
(c) No loan made pursuant to W.S. 11-34-113(j) shall exceedseventy percent (70%) of the appraised value of the security. Loans may besecured by a first or second mortgage on the borrower's real estate as approvedby the board and shall be aggregated with all other loans for purposes ofdetermining compliance with the loan percentages specified in subsection (a) ofthis section.
11-34-115. Minimum and maximum amount of loans.
Theamount of loans to any one (1) borrower shall not be less than ten thousanddollars ($10,000.00) nor more than eight hundred thousand dollars ($800,000.00)if all loans to the borrower are made for the purposes of purchasing farm landsor other purposes as defined by W.S. 11-34-109(a)(i) through (iv).
11-34-116. Agreement to use loans for purposes specified;reappraisement and additional loan.
(a) Every borrower who is granted a loan under this act shallenter into an agreement with the board that if the whole or any portion of hisloan is expended for purposes other than those specified in his originalapplication, or if the borrower is in default in respect to any condition orcovenant of the mortgage, or in case the mortgagor, his heirs or assigns abandonthe land for one (1) year, or if the board at any time believes that the loanis not adequately secured by reason of any mismanagement, waste or neglect ofthe land, the loan at the option of the board shall become due and payableforthwith. The board may permit the loan to be used for any purpose specifiedin W.S. 11-34-109.
(b) A reappraisement may be permitted at any time by the boardand an additional loan may be granted as the reappraisal may warrant.
11-34-117. Rates of interest; length of loan; amount.
(a) The board may set rates of interest on all farm loansaccording to current interest rates but not less than four percent (4%) normore than ten percent (10%) whether the money is loaned upon the amortizationplan or otherwise except that loans pursuant to W.S. 11-34-113(j) shall beloaned for a fixed period of up to seven (7) years with a set interest rateequal to seventy-five percent (75%) of the lowest current rate set by the boardfor farm loans other than loans under W.S. 11-34-113(j).
(b) A farm loan to a beginning agriculture producer shall bethe lowest of eight per cent (8%) or the yield on a ten (10) year United Statestreasury bond. This loan rate shall be fixed for a period of ten (10) years. Atthe end of the ten (10) year period the interest rate shall be the current ratefor loans as established under subsection (a) of this section.
(c) The total value of loans outstanding pursuant to subsection(b) of this section shall not exceed ten percent (10%) of the total amount of farmloan investment authorized by W.S. 11-34-129.
(d) The total value of loans outstanding pursuant to W.S.11-34-113(j) shall not exceed twenty percent (20%) of the total amount of farmloan investment authorized by W.S. 11-34-129. The amount loaned to any one (1)borrower shall not be more than three hundred thousand dollars ($300,000.00).
11-34-118. Refinancing delinquent loans; payment of costs; additionalfee.
The board, whenever it deems necessary forthe better protection of permanent funds of the state invested in farm loans,may refinance any delinquent farm mortgage loan and reamortize the loan overnot more than thirty (30) years from the date of refinancing. All costs ofrefinancing the loan, including the cost of having the abstract brought down todate, shall be paid by the mortgagor and no loan shall be refinanced where itappears refinancing will jeopardize the collection of the loan. An additionalfee of one percent (1%) of the amount of the reamortized loan shall be paid byeach mortgagor to the board to be credited to the loss reserve account asprovided by W.S. 11-34-202(e).
11-34-119. Ultra vires acts of agent.
No loan or mortgage securing the loan shallbe impaired or invalidated by any act of any agent of the board in excess ofhis powers.
11-34-120. Mortgages taken by board; control and disposition ofproperty.
(a) All mortgages and accompanying promissory note or notestaken by the board for monies loaned shall run to state loan and investmentboard as mortgagee or payee, and all titles to property taken by the boardshall run to the board as grantee. The board may control, manage, lease anddispose of the property, subject to the following:
(i) The board may lease any or all property for oil and gas fora primary term up to ten (10) years and as long thereafter as oil or gas isproduced in paying quantities and extend the term of existing oil and gasleases in good standing for as long as oil or gas is produced in payingquantities and for coal and other mineral purposes for terms not exceeding ten(10) years, with the preferential right in each coal or other mineral lessee torenew the lease for successive periods of ten (10) years each;
(ii) The board may make and establish rules and regulationsgoverning the issuance of mineral leases and covering the conduct ofdevelopment and mining operations to be carried on thereunder;
(iii) Mineral leases may be issued upon monthly or annual minimumrental payment basis as fixed by the board, with payments annually applied againstany royalty as shall accrue for the same lease year by the terms of the lease,which royalty, as to lands leased for oil or gas shall not be less than fivepercent (5%) of all oil and gas produced and saved from and not used inoperations on the lands under the lease, and royalty of not less than fivecents ($.05) per ton on coal produced from the lands under any lease for coalpurposes, the royalty to be paid on mine run of coal.
(b) No mineral lease is assignable or transferable except withwritten consent of the board. It shall require the lessee's full compliancewith all rules and regulations adopted by the board and compliance with allterms of the lease. All mineral leases shall be separate and distinct from eachlease of the land for grazing or agricultural purposes. Rules and regulationsadopted by the board shall provide for joint use of the lands for grazing andagricultural or mineral purposes without undue interference by the lesseesunder any class of leases with lessees under any other class. The board, onbehalf of the state and its lessee in any mineral lease may join in theinterest of conservation and greater ultimate recovery of oil and gas, in fairand equitable cooperative or unit plans of development or operation of oil and gaspools, with the United States government and its lessees or permittees, orothers, and the board may modify and change any terms and conditions of any oiland gas lease as mutually agreed by the lessor and lessee to conform to theterms of any lease to the cooperative or unit plan and to effectuate properoperations thereunder. The changes may include extension of the term of yearsapplicable to any lease for the full period of time during which thecooperative or unit plan may remain in effect.
(c) When a cooperative or unit agreement is terminated orceases to be effective as to lands upon which there is no production of oil orgas, the lease covering the lands shall remain in effect for two (2) years fromthe date the lands ceased to be subject to the agreement, or for the remaininglength of the term of the original lease, whichever is greater, and so longthereafter as oil or gas is produced from the lands in accordance with therequirements of the original lease.
(d) The terms of any lease issued under this section for landon which actual drilling operations were commenced prior to the end of itsprimary term and are being diligently prosecuted at that time shall be extendedfor one (1) year and so long thereafter as oil or gas is produced in payingquantities.
(e) If land acquired by the board and upon which improvementsfor mineral operations and other improvements have been made, are sold as toboth surface and mineral rights, or if the lands are leased for minerals toother than the owner of the mineral improvements, the purchaser or new lesseeshall pay the owner of the improvements the fair value thereof at a mutuallyagreed price. If agreement cannot be promptly reached the price shall be fixedby appraisement under the direction of the board. As used in this subsection"improvements" means improvements which are used or useful andnecessary for subsequent operation of the land for mineral purposes and theprice shall include the fair value of the work previously done in the developmentof the property if it is of practical use in future mineral operation. No welldrilled on the land for oil or gas which does not produce either in commercialquantities, and no shaft, tunnel or drift from which coal or other mineralshave been substantially exhausted shall be considered improvements for thepurposes of this subsection.
(f) The board may sell or otherwise dispose of property at aprice not less than seventy-five percent (75%) of the appraised value and uponterms determined by the board which shall adopt rules and regulations governingsuch sales. When land is sold which was acquired by the board through theforeclosure of any farm loan mortgage provided for by this act, the board shallnot reserve any part of, or interest in, the mineral estate. When landotherwise acquired by the board is sold, the board may reserve all or any partof the mineral content of the land and the right to use so much of the surfaceof the land as it considers convenient or necessary in connection with mineraloperations thereon, together with all needed rights of ingress and egress, butthe board in each case shall appropriately provide for indemnification of thesurface owner against all surface damages caused by mineral operations on theland.
(g) The board may lease for agricultural and grazing purposesany lands acquired by it on such terms and conditions as it prescribes andadopt rules and regulations it considers necessary in facilitating the leases.
(h) Revenue received by the board under this section fromagricultural, grazing and mineral leases of lands acquired by foreclosure shallbe credited to the loss reserve account as provided by W.S. 11-34-202(e).
11-34-121. Mortgagor to pay for recording loan papers; title insuranceor abstract required; deposit; additional fee.
The mortgagor shall pay for the recordingof his mortgage and other papers connected with the loan which may be required.He shall furnish to the board at his own expense a mortgagee's title insurancepolicy in the full amount of the mortgage, issued by a title insurance companyauthorized to do business in Wyoming in a form acceptable to the board,reflecting merchantable fee title in mortgagor, or in lieu thereof an abstractof title certified by a bonded abstracter qualified to prepare abstracts underthe laws of Wyoming, under such rules as the board may prescribe. The mortgagorshall deposit with the board before his application is considered, one hundreddollars ($100.00), the unused portion of which, if his loan is not granted,shall be returned to him, but if his loan is granted, the amount shall be paidinto the loss reserve account as provided by W.S. 11-34-202(e). An additionalfee of one percent (1%) of the loan closed shall be paid by each mortgagor tothe board. The revenues produced by this fee shall be credited to the lossreserve account as provided by W.S. 11-34-202(e).
11-34-122. Release of mortgage.
When the mortgagor or his successor ininterest has fully paid any mortgage, the board shall furnish him with a properrelease of the mortgage executed by the president of the board and attested bythe director of the office of state lands and investments with the seal of theboard thereon, and the mortgage papers belonging to the loan including abstractof title and insurance policies assigned, shall be returned to the mortgagor orsuccessor in interest.
11-34-123. Foreclosure proceedings; duty of attorney general; deed inlieu of foreclosure.
(a) Any foreclosure of any mortgage provided for by this actshall be made in the usual manner, either by civil action or by advertisementas the board may direct. In cases of foreclosure the attorney general shallrender all services needed in connection with the foreclosure proceedings, andthe costs, fees and expenses may be taxed in like manner and to the same effectas if the state of Wyoming were a natural person. Payment of proceeds uponforeclosure shall be made in accordance with W.S. 34-4-113. All moniesreceived by the state from sale of the land acquired by foreclosure or byredemption of land sold on foreclosure, in excess of the amount owing to theappropriate permanent fund account and the interest due thereon, shall becredited to the loss reserve account as provided by W.S. 11-34-202(e). Theboard may extend the time of payment of any interest or installment payment dueon any farm loan for as long as the board deems proper, and distribute thedefaulted payments including interest, over undue payments in a manner andunder terms the board deems just, each loan to be judged on its own meritswithout regard to any general rule. It is the intention of this section toauthorize the board to consider and determine whether any mortgages executed byvirtue of this act shall be foreclosed or renewed, with or without penalty, butno renewal shall extend beyond the due date of the original loan or anyextension of the term by reamortization authorized by W.S. 11-34-113(d).
(b) Repealed By Laws 2010, Ch. 69, 204.
(c) Notwithstanding other provisions of this section the stateloan and investment board by unanimous vote may accept a deed in lieu offoreclosure, provided:
(i) The board determines any remaining liability is notcollectible; and
(ii) Any loss to any permanent fund resulting from theacceptance of the deed in lieu of foreclosure is restored as provided by W.S.11-34-202(f).
11-34-124. Interest on defaulted payments and unpaid taxes; agreementto pay; insurance required; use of proceeds; foreclosure permitted.
Every borrower shall pay interest ondefaulted payments at a rate to be determined by the board not to exceed a tenpercent (10%) annual percentage rate. By express covenant in his mortgage deedthe borrower shall agree to pay when due all interest, taxes, liens, judgments,assessments and insurance lawfully assessed against the mortgaged land. Taxes,liens, judgments, assessments or insurance not paid when due and paid by themortgagee become a part of the mortgage debt and shall bear interest at a rateto be determined by the board not to exceed a ten percent (10%) annualpercentage rate. Every borrower shall insure buildings on the lands mortgagedto the satisfaction of the board. Insurance shall be made payable to themortgagee as its interest may appear at the time of loss, and at the option ofthe mortgagee subject to the general regulations of the board. Insuranceproceeds received may be used to pay for reconstruction of the buildingsdestroyed. Nothing in this section shall prevent the commencement offoreclosure proceedings at any time upon the default of principal or interestor failure to pay any taxes, judgments, assessments, liens or insurance.
11-34-125. Repealed by Laws 1980, ch. 49, 3.
11-34-126. Exemption of property of board from taxation; exceptions.
(a) Except as otherwise provided by subsection (b) of thissection, all mortgages, real estate and other property owned by the board isexempt from all general taxes, state, county and municipal. For the purpose ofthis act the board is deemed to be the owner of any property from the date itis bid in by the board at a foreclosure sale.
(b) If the board becomes the owner of the real estate and otherproperty before the fourth Monday in June of the current year, it shall beliable for any property taxes lawfully assessed against the property, exceptfor any taxes imposed under W.S. 21-13-102, 21-13-201 and 21-13-303. Thecounty assessor shall list and assess the property for taxation purposes, andthe state loan and investment board shall pay any tax due for the year in itsentirety prior to December 31 of that year and any other year in which theboard owns the property. If redemption is made of the property at any timeduring the year in which the state loan and investment board has paid theproperty taxes due, the person redeeming the property shall be liable to thestate loan and investment board for any taxes paid. There is appropriated fromthe loss reserve account as provided by W.S. 11-34-202 to the state loan andinvestment board a sum sufficient to pay the property taxes authorized by thissection.
11-34-127. Surety bonds; generally.
Whenever a bond or undertaking is requiredby this act or by the board to be given, it shall be held to mean a surety bondfurnished by a surety company authorized and qualified to do business in thisstate. Such bonds shall run to the state loan and investment board and the formthereof shall be approved by the attorney general.
11-34-128. Surety bonds; payment of cost.
The cost of surety bonds provided by thisact, furnished by the officers or employees of said board, shall be a part ofthe general expense of the administration and paid by the board.
11-34-129. Investment of permanent funds.
The state treasurer, with the approval ofthe board, is directed to invest and keep invested in farm loans a sum not toexceed two hundred seventy-five million dollars ($275,000,000.00) of any statepermanent funds available for investment, including loans already made andoutstanding, as the funds become available in the treasurer's office forinvestment in loans approved by the board.
11-34-130. Trespass upon lands owned by board prohibited; penalties.
Whoever knowingly and willfully commits atrespass upon lands owned by the board or upon lands mortgaged to the board,either by cutting down or destroying or carrying away any timber or woodstanding or growing thereon or by grazing, mowing, cutting or removing any hay,grass or growing or matured crops thereon or who, without right, injures orremoves any building, fence, improvements or other property belonging orappertaining to the lands, or unlawfully occupies, plows or cultivates any ofthe land, or aids or abets any trespass or injury, is guilty of a misdemeanorand shall be fined not less than twenty-five dollars ($25.00) or more than fivehundred dollars ($500.00), imprisoned not less than thirty (30) days or morethan six (6) months, or both.
11-34-131. Wyoming transportation enterprise account; use thereof.
(a) The transportation enterprise account is established to beused by the state loan and investment board to finance transportation projectsof benefit to the general public as defined in this section. The transportationenterprise account shall be administered by the state loan and investmentboard, subject to recommendation and appropriation by the legislature, for thepurpose of fostering transportation investments in projects of benefit to thegeneral public within the state. The state loan and investment board shall:
(i) Adopt rules and regulations to implement the purposes ofthis section, considering other funds available including department oftransportation funds; and
(ii) Distribute funds to eligible grantees only, pursuant toappropriation of funds from the transportation enterprise fund by the legislature,subsection (c) of this section, federal requirements and rules and regulationsof the state loan and investment board.
(b) The transportation enterprise account shall receive moniesfrom mineral royalty payments as provided in W.S. 9-4-607(a). All repayments ofprincipal and interest to the state in connection with loans made under thissection shall be deposited into the transportation enterprise account.
(c) The board may make grants or loans to public entities forthe purpose of enhancing transportation in this state. Eligible uses of themonies in the fund shall include capital investments for public transportationand improvement and maintenance of airline service and facilities.
(d) In adopting rules and regulations under paragraph (a)(i) ofthis section, the board shall provide for the allocation of funds for capitalinvestments for public transportation and for purposes eligible undersubsection (c) of this section, with investment income received under W.S.9-4-607(b) being allocated to purposes eligible under subsection (c) of thissection.
(e) The state loan and investment board shall annually auditthe transportation trust fund created under W.S. 9-4-607(a) to determine theeffects of inflation on investment earnings.
ARTICLE 2 - ISSUANCE OF BONDS AND DISPOSITION OF REVENUES
(a) The board may issue its nonnegotiable debenture bonds insuch numbers and amounts as necessary to be deposited with the state treasurer.The state treasurer shall accept the bonds in lieu of the promissory notes andmortgages held by the board as security for the investment of permanent fundsof Wyoming in mortgages upon real estate.
(b) One (1) bond shall be issued for each note, in the amountof the balance due upon the principal of each note to be deposited with thestate treasurer. The bond shall bear interest at the same rate as theunderlying note and be secured by the original security pledged for the paymentto the state of the note for which the bond is issued or substituted, or by anysecurity or property taken by the board in addition to or in lieu of theoriginal security. Each bond is due and payable on the date when the note forwhich the bond was issued or substituted is due and payable.
11-34-202. Revenue to be credited to an account; use thereof;disposition of excess.
(a) Except as provided by subsection (e) of this section or asotherwise provided by law, the state loan and investment board shall transmitany revenue received to the state treasurer to be credited to a separateaccount for the purposes specified in W.S. 21-15-106(a).
(b) Repealed by Laws 1981, ch 44, 2.
(c) Repealed by Laws 1981, ch 44, 2.
(d) Following a general fund appropriation by the legislaturefor administrative expenses, amounts expended pursuant to the appropriationshall be transferred monthly from the account provided by subsection (a) ofthis section to the general fund as provided by W.S. 9-4-205(b) for the highwayfund and the special revenue fund in certain instances. Revenue currently inthe account formerly provided for by W.S. 11-34-202(a), (b) and (c), as thosesubsections existed prior to the creation of this subsection, may be expendedfor purposes formerly authorized until July 1, 1982 at which time the revenuewithin the account shall be credited to the account provided by subsection (a)of this section.
(e) Revenue and proceeds received by the board for deposit inthe loss reserve account pursuant to W.S. 11-34-118, 11-34-120(h), 11-34-121,11-34-123(a) and 11-34-302(e) shall be transmitted to the state treasurer fordeposit to the credit of the loss reserve account. These funds shall be usedfor the purposes specified in subsection (f) of this section and W.S. 11-34-126and to pay the administrative and legal expenses of the board in makingcollections and foreclosing mortgages. If at the end of any fiscal year theamount accumulated in the loss reserve account exceeds five percent (5%) of thetotal amount of permanent funds of the state invested in farm and irrigationloans, the amount in excess of the five percent (5%) shall be transferred andcredited to the general fund.
(f) If, as a result of default in the payment of any farm orirrigation loan, there occurs a nonrecoverable loss either to the corpus of, orinterest due to, any permanent fund of the state, the board shall restore theloss to the permanent fund account entitled thereto using any funds availablein the loss reserve account created by subsection (e) of this section. If thefunds in the loss reserve account are insufficient to restore the full amountof the loss, the board shall submit a detailed report of the loss to thelegislature and shall request an appropriation to restore the balance of theloss to the permanent fund account entitled thereto.
11-34-203. Report to governor; separate statement required.
The state loan and investment board shallreport to the governor as required by W.S. 9-2-1014, and include a separatestatement of all loans obtained from the state treasurer by the issuance ofbonds as herein provided, and showing the disposition of the funds.
ARTICLE 3 - LOANS
11-34-301. Water development projects; nonnegotiable debentures; loansto small projects.
(a) The state loan and investment board may issue itsnonnegotiable debenture bonds for a sum not in excess of thirty-three andone-third percent (33 1/3%) or twenty million dollars ($20,000,000.00),whichever is less, of the permanent funds of Wyoming which shall be availablefor loan by the board for the purpose set forth in W.S. 11-34-302. The statetreasurer, upon request of the state loan and investment board, shall investand keep invested a sum not to exceed thirty-three and one-third percent (331/3%) or sixty million dollars ($60,000,000.00), whichever is less, of thepermanent funds of Wyoming in the bonds of the board. One-half (1/2) of thissum shall be used for loans to small water development projects. No single loanto an individual under a small water development project shall exceed onehundred fifty thousand dollars ($150,000.00). The bonds shall be delivered tothe state treasurer and bear interest not to exceed eight percent (8%) nor lessthan four percent (4%) per annum, at the discretion of the board, payable on orbefore forty (40) years from the date of issuance.
(b) Loans shall be made only to qualified Wyoming electors orto a corporation if a majority of the corporation's outstanding shares areowned beneficially or of record by qualified Wyoming electors.
11-34-302. Water development projects; loans authorized; terms andconditions; assistance by water development commission.
(a) The board may make loans to court approved water districts,to agencies of state and local government, persons, corporations andassociations in this state, all hereinafter referred to as the borrower, tofinance the construction of water development projects. If any portion of thewater developed as a result of the construction of any project authorized bythe state loan and investment board is to be utilized for other thanagricultural, recreational or municipal purposes, the loan authorized by thestate loan and investment board may be limited to that portion of theconstruction cost apportioned to the development of the water to be utilizedfor agricultural, recreational or municipal purposes. For any water storageproject loans used for other than agricultural, recreational or municipalpurposes, the state loan and investment board may set the interest rate inexcess of four percent (4%). The state loan and investment board shall make nocommitments of state funds for such projects in excess of the funds previouslyapproved by the legislature.
(b) The state loan and investment board shall require suchsecurity as it deems advisable. The state loan and investment board may accepta second mortgage as security if the loan is otherwise adequately secured.Loans shall be at a rate of interest not to exceed six percent (6%) per annumnor less than four percent (4%) per annum and shall be for a term not to exceedforty (40) years. Upon application of the borrower the board may provide forpayment of interest only during any period in which the governor has declared thata drought or other emergency exists in this state, and thereafter for thepayment of both interest and principal on the amortization plan. The stateloan and investment board may make such other rules and regulations governingthe making of loans as it deems advisable.
(c) Upon request of the state loan and investment board, theWyoming water development commission shall provide technical assistance to theboard in reviewing loan applications and water project development.
(d) Repealed by Laws 1988, ch. 79, 11.
(e) A fee of one percent (1%) of each loan made under thissection shall be paid by the borrower to the board to be credited to the lossreserve account as provided by W.S. 11-34-202(e).
11-34-303. Area redevelopment programs; terms; rules and regulations;fund source.
(a) The state loan and investment board, with the advice of theWyoming business council created by W.S. 9-12-103, may negotiate and make loansto departments and agencies of state and local government, persons, corporationsand associations in this state, not to exceed the aggregate sum of threehundred thousand dollars ($300,000.00) at a reasonable rate of interest for aterm not to exceed forty (40) years for repayment. Each loan shall not exceedten percent (10%) of the cost of any project within a redevelopment area forindustrial or commercial usage under the area redevelopment program providedfor in chapter 28 of title 42 of the Federal Public Health and Welfare Act, 42U.S.C. 3161 and 3162.
(b) The state loan and investment board, shall make such rulesand regulations concerning loans under this section as it deems advisable butthe board shall require a mortgage or other lien upon all of the property ofthe project.
(c) Loans provided for by this section shall be made from thepermanent funds of Wyoming.
11-34-304. Lamb processing facility; loans authorized; maximum amount;interest and terms of loans.
The board may negotiate and make a loan orloans to persons, firms and corporations of this state for the purpose ofdeveloping a lamb processing facility within the state which will serve tomaintain or enhance the value or marketability of Wyoming agricultural productsand promote the economic development of Wyoming agriculture, but not to exceedthree million five hundred thousand dollars ($3,500,000.00) to any one (1)person, firm or corporation. The loan or loans shall be at a rate of interestnot less than seven percent (7%) nor more than twelve percent (12%) per annum,and shall be for a term not to exceed twenty (20) years. No loan shall exceedeighty percent (80%) of the cost of any project. Principal and interestpayments shall be deposited in the general fund.
11-34-305. Lamb processing facility; approval and regulation of loans;security.
The board shall approve the location, plansand specifications of projects submitted by loan applicants and make rules andregulations concerning the loans authorized under W.S. 11-34-304 as it deemsnecessary, but all loans shall be secured by a first mortgage upon all theproperty of the project. The board may require such additional security, as itdeems necessary, for the loans from the persons, firms, limited partnershipsand corporations receiving the loans.
(i) "First mortgage" means first and superior lienson farm lands except as hereinafter provided, the fee simple title to which isin the proposed borrower;
(ii) "Farm land," "farm" and"farms" includes:
(A) Lands used principally for raising agricultural products;
(B) Lands used principally for dairying purposes; and
(C) Lands or ranches used principally for livestock purposes.
(iii) "Board" means the state loan and investmentboard;
(iv) "This act" means W.S. 11-34-101 through11-34-305.
11-34-102. Rural credits; establishment and administration; compositionof board; power to sue and be sued; officers.
(a) For the purpose of fostering and encouraging agriculture,dairying and livestock raising in Wyoming and the development and improvementof farm lands, there is hereby created and established a system of ruralcredits to be administered by the state loan and investment board.
(b) The board of land commissioners is hereby constituted thestate loan and investment board. The board may sue and be sued in the name ofthe state loan and investment board in the courts of this state and in no otherjurisdiction on any mortgage, contract of sale or lease issued by the board.The governor is president of the board but in his absence from any meeting one(1) of the members may act as president pro tempore and preside at meetings.The director of the office of state lands and investments is the chiefexecutive officer of the board, and the deputy director of the office of statelands and investments is deputy chief executive officer.
11-34-103. Powers and duties generally; employees and financialmatters; reports to governor.
(a) The board shall establish a system of farm loans, andforeclose or renew any installment payment of the loans as provided by thisact. The board may provide for its office, necessary furniture, fixtures,stationery and supplies, adopt rules and regulations proper and necessary forthe conduct of its business and receive and approve applications for farmloans. All monies received shall be delivered to the state treasurer to be creditedto the funds from which originally drawn. The board may acquire and dispose ofproperty, real and personal, as necessary or convenient for the transaction ofits business and accept assignments of interests in any real or personalproperty which are taken as additional security or collateral to preexistentdebts or approved loans.
(b) The board shall employ assistants, clerks, appraisers andother employees as necessary to conduct its business, fix the fees, costs andcharges which shall be credited to the general fund to cover the expenses ofthe board in making loans and define the duties of the officers, agents andemployees of the board. All officers and employees shall be under the directionand authority of the board in all matters not inconsistent with this act. Theboard shall, as required by W.S. 9-2-1014, report to the governor such generalinformation and recommendations as to the board seem proper. The board shallexercise all incidental power as necessary to carry out this act.
11-34-104. Seal; design.
The board shall obtain and keep a seal. Thedesign of the seal shall be a circle within which appears in the center theword "Seal." Between the lower and upper edges of the circle,properly divided, shall appear the words "Wyoming State Loan andInvestment Board," "State of Wyoming."
11-34-105. Chief executive officer; powers and duties.
(a) The director of the office of state lands and investmentsis the chief executive officer under the direction of the board and has generalsupervision of the business and employees of the board.
(b) The director of the office of state lands and investmentsshall:
(i) Keep all books of account of the board;
(ii) Receive, collect and promptly pay over to the statetreasurer all monies that come into his possession;
(iii) Keep in his care and custody copies of all promissorynotes, mortgages and other securities or evidences of indebtedness andmuniments of title acquired or received by the board for monies loaned on realestate;
(iv) Transmit to the state treasurer the original notes andmortgages at the time of the disbursements of monies by the state treasurer.The security shall be kept by the state treasurer as a record and evidence ofmonies disbursed by the treasurer by virtue of this act;
(v) Render monthly statements to the board of the transactionsof his office;
(vi) Keep the seal of the board and affix the seal with hisattestation to all instruments or papers whenever required;
(vii) Keep a record of the proceedings of the board and suchbooks and records as are necessary for the conduct of the business of hisoffice;
(viii) Submit regular reports to the board setting forth in detailthe status of all farm and irrigation loans which are delinquent as to thepayment of any installment of principal or interest due; and
(ix) Do and perform such other acts as required by the board.
11-34-106. Legal advisor.
The attorney general is the legal advisorof the board and its officers.
11-34-107. Quorum; loan; votes required; record.
A majority of the board constitutes aquorum. No loan shall be made except upon the affirmative vote of not less thanthree (3) of the members, and the records of the meeting shall show whichmembers voted to approve the loan.
11-34-108. Loans on lands subject to preexisting liens; effect.
The board may loan money on and take assecurity farm lands subject to liens, charges or assessments for drainage,reclamation or irrigation purposes, payable in installments, not due at thetime of making the loan, and the mortgage taken to secure the loan shall,notwithstanding the liens, charges or assessments, be deemed a first mortgagewithin the meaning of this act. The amount of the liens, charges or assessmentsshall be considered by the board in determining the amount to be loaned on thefarm lands.
11-34-109. Purposes for which loans authorized.
(a) Loans may be made for the following agriculture relatedpurposes and no other:
(i) To provide for the purchase of farm lands;
(ii) To provide for the purchase of equipment as defined by theboard, fertilizers and livestock necessary for the proper and reasonableoperation of the mortgaged farm lands;
(iii) To provide for buildings and other improvements, as definedby the board, of farm lands;
(iv) To liquidate indebtedness of the owner of the land to bemortgaged;
(v) Repealed By Laws 2008, Ch. 42, 2.
11-34-110. Limitations on borrowers; due on sale clause; sale ofmortgaged land.
(a) No loan shall be made to any person who is not at the timeor shortly to become engaged in the cultivation and development of the farmland mortgaged.
(b) Loans shall be made only to qualified Wyoming electors orto a corporation if a majority of the corporation's outstanding shares areowned beneficially or of record by qualified Wyoming electors.
(c) Every mortgage shall contain a due on sale clause which maybe exercised at the option of the board. The board may permit a mortgage to beassumed by a purchaser who is otherwise qualified to receive a loan under thisact, or by the heirs of a deceased mortgagor.
11-34-111. Application for loan; form; contents; priority ofapplications.
(a) Every applicant for a loan under this act shall apply on aform prescribed by the board. The applicant shall state the object to which theproceeds of the loan will be applied and shall furnish such other informationas required by the board.
(b) The state loan and investment board is authorized topromulgate rules and regulations to establish criteria for determining thepriority in which farm loan applications will be considered. The criteria forestablishing priority will include, but are not limited to, an applicant'sneed, financial net worth, earning capacity and the ability to repay the loan.
11-34-112. Application for loan; filing; appraisal of land;consideration of written report.
Before any mortgage loan is made by theboard, the loan application shall be filed with the director of the office ofstate lands and investments who shall make, or cause to be made, an appraisaland written report upon the land offered as security for the loan. No loanshall be made unless the written report is filed with the director of theoffice of state lands and investments and considered, approved and authorizedby the unanimous consent of all members of the board present at the meeting atwhich the loan is considered.
11-34-113. Terms and conditions of loans.
(a) The board shall make loans only upon the following termsand conditions:
(i) The loan shall be secured by a duly recorded first orsecond mortgage as approved by the board on the farm lands within this state;
(ii) Every mortgage shall contain an agreement providing forrepayment of the entire amount of the loan and interest upon a certain date orin several specified payments, or on an amortization plan of annual orsemiannual installments so computed as to pay the interest on the loanaccording to terms of the mortgage and such amounts to be applied on theprincipal as will terminate the debt within an agreed period of not less thanfive (5) years nor more than thirty (30) years. The method of repayment is atthe option of the board.
(b) After five (5) years from date of the mortgage, additionalpayments for part or all of the principal may be made on the annual orsemiannual payment date under such rules and regulations as the board mayprescribe. On the application of the borrower the board may provide in themortgage for the payment of interest only during the first five (5) years and thereafterfor the payment of both interest and principal on the amortization plan. Anyloan may be paid in full before the expiration of five (5) years upon paymentof a ten dollar ($10.00) fee to be paid into the general fund. Any loan paid infull after five (5) years from the date thereof, the ten dollars ($10.00) feeshall not be collected.
(c) Repealed by Laws 1987, ch. 242, 2.
(d) Notwithstanding the loan term limitation specified inparagraph (a)(ii) of this section, the board may reamortize farm loan paymentsover an additional number of years which together with the years remaining onthe original term shall create a new term not to exceed thirty (30) years, atthe same interest rate as that in effect at the time of reamortization for loansbeing made under W.S. 11-34-101 through 11-34-130, when in the judgment of theboard the reduced payments resulting from reamortization of the loan willprovide adequate financial benefit to assure with reasonable certainty theultimate repayment of the loan. Any borrower requesting reamortization shallhave the burden of showing that reamortization will significantly improve thefinancial viability of the agricultural operation. No loan shall bereamortized if, in the sole judgment of the board, the borrower is in soundfinancial condition and reamortization is not necessary to secure repayment ofthe loan, or if reamortization will not provide sufficient financial benefit toavoid the imminent failure of the borrower's operation. Nothing in this sectionshall be construed as authorizing the reamortization of irrigation loans.
(e) Repealed by Laws 1987, ch. 242, 2.
(f) Repealed by Laws 1987, ch. 242, 2.
(g) Repealed by Laws 1987, ch. 242, 2.
(h) Repealed By Laws 2008, Ch. 42, 2.
(j) Notwithstanding the terms and conditions specified inparagraph (a)(ii) of this section, the board may make loans for the purpose ofenhancing or restoring livestock numbers in the state. Loans made under thissubsection shall be for a term not to exceed seven (7) years.
11-34-114. Limitation on loans; percentages of appraised value.
(a) No loan secured by a first mortgage shall exceed seventypercent (70%) of the appraised value of the land with the necessary existingimprovements, as ascertained and fixed by the board except as provided by W.S.11-34-117. If a loan is secured by a second mortgage, the sum of the first andsecond mortgages shall not exceed eighty percent (80%) of the appraised valueof the land and improvements and the balance due on the loans secured by thefirst or second mortgage shall not exceed eight hundred thousand dollars($800,000.00). The appraisal shall be made by the state loan and investmentboard, with the advice of two (2) residents of the immediate locality in whichthe loan is being considered.
(b) Repealed By Laws 2008, Ch. 42, 2.
(c) No loan made pursuant to W.S. 11-34-113(j) shall exceedseventy percent (70%) of the appraised value of the security. Loans may besecured by a first or second mortgage on the borrower's real estate as approvedby the board and shall be aggregated with all other loans for purposes ofdetermining compliance with the loan percentages specified in subsection (a) ofthis section.
11-34-115. Minimum and maximum amount of loans.
Theamount of loans to any one (1) borrower shall not be less than ten thousanddollars ($10,000.00) nor more than eight hundred thousand dollars ($800,000.00)if all loans to the borrower are made for the purposes of purchasing farm landsor other purposes as defined by W.S. 11-34-109(a)(i) through (iv).
11-34-116. Agreement to use loans for purposes specified;reappraisement and additional loan.
(a) Every borrower who is granted a loan under this act shallenter into an agreement with the board that if the whole or any portion of hisloan is expended for purposes other than those specified in his originalapplication, or if the borrower is in default in respect to any condition orcovenant of the mortgage, or in case the mortgagor, his heirs or assigns abandonthe land for one (1) year, or if the board at any time believes that the loanis not adequately secured by reason of any mismanagement, waste or neglect ofthe land, the loan at the option of the board shall become due and payableforthwith. The board may permit the loan to be used for any purpose specifiedin W.S. 11-34-109.
(b) A reappraisement may be permitted at any time by the boardand an additional loan may be granted as the reappraisal may warrant.
11-34-117. Rates of interest; length of loan; amount.
(a) The board may set rates of interest on all farm loansaccording to current interest rates but not less than four percent (4%) normore than ten percent (10%) whether the money is loaned upon the amortizationplan or otherwise except that loans pursuant to W.S. 11-34-113(j) shall beloaned for a fixed period of up to seven (7) years with a set interest rateequal to seventy-five percent (75%) of the lowest current rate set by the boardfor farm loans other than loans under W.S. 11-34-113(j).
(b) A farm loan to a beginning agriculture producer shall bethe lowest of eight per cent (8%) or the yield on a ten (10) year United Statestreasury bond. This loan rate shall be fixed for a period of ten (10) years. Atthe end of the ten (10) year period the interest rate shall be the current ratefor loans as established under subsection (a) of this section.
(c) The total value of loans outstanding pursuant to subsection(b) of this section shall not exceed ten percent (10%) of the total amount of farmloan investment authorized by W.S. 11-34-129.
(d) The total value of loans outstanding pursuant to W.S.11-34-113(j) shall not exceed twenty percent (20%) of the total amount of farmloan investment authorized by W.S. 11-34-129. The amount loaned to any one (1)borrower shall not be more than three hundred thousand dollars ($300,000.00).
11-34-118. Refinancing delinquent loans; payment of costs; additionalfee.
The board, whenever it deems necessary forthe better protection of permanent funds of the state invested in farm loans,may refinance any delinquent farm mortgage loan and reamortize the loan overnot more than thirty (30) years from the date of refinancing. All costs ofrefinancing the loan, including the cost of having the abstract brought down todate, shall be paid by the mortgagor and no loan shall be refinanced where itappears refinancing will jeopardize the collection of the loan. An additionalfee of one percent (1%) of the amount of the reamortized loan shall be paid byeach mortgagor to the board to be credited to the loss reserve account asprovided by W.S. 11-34-202(e).
11-34-119. Ultra vires acts of agent.
No loan or mortgage securing the loan shallbe impaired or invalidated by any act of any agent of the board in excess ofhis powers.
11-34-120. Mortgages taken by board; control and disposition ofproperty.
(a) All mortgages and accompanying promissory note or notestaken by the board for monies loaned shall run to state loan and investmentboard as mortgagee or payee, and all titles to property taken by the boardshall run to the board as grantee. The board may control, manage, lease anddispose of the property, subject to the following:
(i) The board may lease any or all property for oil and gas fora primary term up to ten (10) years and as long thereafter as oil or gas isproduced in paying quantities and extend the term of existing oil and gasleases in good standing for as long as oil or gas is produced in payingquantities and for coal and other mineral purposes for terms not exceeding ten(10) years, with the preferential right in each coal or other mineral lessee torenew the lease for successive periods of ten (10) years each;
(ii) The board may make and establish rules and regulationsgoverning the issuance of mineral leases and covering the conduct ofdevelopment and mining operations to be carried on thereunder;
(iii) Mineral leases may be issued upon monthly or annual minimumrental payment basis as fixed by the board, with payments annually applied againstany royalty as shall accrue for the same lease year by the terms of the lease,which royalty, as to lands leased for oil or gas shall not be less than fivepercent (5%) of all oil and gas produced and saved from and not used inoperations on the lands under the lease, and royalty of not less than fivecents ($.05) per ton on coal produced from the lands under any lease for coalpurposes, the royalty to be paid on mine run of coal.
(b) No mineral lease is assignable or transferable except withwritten consent of the board. It shall require the lessee's full compliancewith all rules and regulations adopted by the board and compliance with allterms of the lease. All mineral leases shall be separate and distinct from eachlease of the land for grazing or agricultural purposes. Rules and regulationsadopted by the board shall provide for joint use of the lands for grazing andagricultural or mineral purposes without undue interference by the lesseesunder any class of leases with lessees under any other class. The board, onbehalf of the state and its lessee in any mineral lease may join in theinterest of conservation and greater ultimate recovery of oil and gas, in fairand equitable cooperative or unit plans of development or operation of oil and gaspools, with the United States government and its lessees or permittees, orothers, and the board may modify and change any terms and conditions of any oiland gas lease as mutually agreed by the lessor and lessee to conform to theterms of any lease to the cooperative or unit plan and to effectuate properoperations thereunder. The changes may include extension of the term of yearsapplicable to any lease for the full period of time during which thecooperative or unit plan may remain in effect.
(c) When a cooperative or unit agreement is terminated orceases to be effective as to lands upon which there is no production of oil orgas, the lease covering the lands shall remain in effect for two (2) years fromthe date the lands ceased to be subject to the agreement, or for the remaininglength of the term of the original lease, whichever is greater, and so longthereafter as oil or gas is produced from the lands in accordance with therequirements of the original lease.
(d) The terms of any lease issued under this section for landon which actual drilling operations were commenced prior to the end of itsprimary term and are being diligently prosecuted at that time shall be extendedfor one (1) year and so long thereafter as oil or gas is produced in payingquantities.
(e) If land acquired by the board and upon which improvementsfor mineral operations and other improvements have been made, are sold as toboth surface and mineral rights, or if the lands are leased for minerals toother than the owner of the mineral improvements, the purchaser or new lesseeshall pay the owner of the improvements the fair value thereof at a mutuallyagreed price. If agreement cannot be promptly reached the price shall be fixedby appraisement under the direction of the board. As used in this subsection"improvements" means improvements which are used or useful andnecessary for subsequent operation of the land for mineral purposes and theprice shall include the fair value of the work previously done in the developmentof the property if it is of practical use in future mineral operation. No welldrilled on the land for oil or gas which does not produce either in commercialquantities, and no shaft, tunnel or drift from which coal or other mineralshave been substantially exhausted shall be considered improvements for thepurposes of this subsection.
(f) The board may sell or otherwise dispose of property at aprice not less than seventy-five percent (75%) of the appraised value and uponterms determined by the board which shall adopt rules and regulations governingsuch sales. When land is sold which was acquired by the board through theforeclosure of any farm loan mortgage provided for by this act, the board shallnot reserve any part of, or interest in, the mineral estate. When landotherwise acquired by the board is sold, the board may reserve all or any partof the mineral content of the land and the right to use so much of the surfaceof the land as it considers convenient or necessary in connection with mineraloperations thereon, together with all needed rights of ingress and egress, butthe board in each case shall appropriately provide for indemnification of thesurface owner against all surface damages caused by mineral operations on theland.
(g) The board may lease for agricultural and grazing purposesany lands acquired by it on such terms and conditions as it prescribes andadopt rules and regulations it considers necessary in facilitating the leases.
(h) Revenue received by the board under this section fromagricultural, grazing and mineral leases of lands acquired by foreclosure shallbe credited to the loss reserve account as provided by W.S. 11-34-202(e).
11-34-121. Mortgagor to pay for recording loan papers; title insuranceor abstract required; deposit; additional fee.
The mortgagor shall pay for the recordingof his mortgage and other papers connected with the loan which may be required.He shall furnish to the board at his own expense a mortgagee's title insurancepolicy in the full amount of the mortgage, issued by a title insurance companyauthorized to do business in Wyoming in a form acceptable to the board,reflecting merchantable fee title in mortgagor, or in lieu thereof an abstractof title certified by a bonded abstracter qualified to prepare abstracts underthe laws of Wyoming, under such rules as the board may prescribe. The mortgagorshall deposit with the board before his application is considered, one hundreddollars ($100.00), the unused portion of which, if his loan is not granted,shall be returned to him, but if his loan is granted, the amount shall be paidinto the loss reserve account as provided by W.S. 11-34-202(e). An additionalfee of one percent (1%) of the loan closed shall be paid by each mortgagor tothe board. The revenues produced by this fee shall be credited to the lossreserve account as provided by W.S. 11-34-202(e).
11-34-122. Release of mortgage.
When the mortgagor or his successor ininterest has fully paid any mortgage, the board shall furnish him with a properrelease of the mortgage executed by the president of the board and attested bythe director of the office of state lands and investments with the seal of theboard thereon, and the mortgage papers belonging to the loan including abstractof title and insurance policies assigned, shall be returned to the mortgagor orsuccessor in interest.
11-34-123. Foreclosure proceedings; duty of attorney general; deed inlieu of foreclosure.
(a) Any foreclosure of any mortgage provided for by this actshall be made in the usual manner, either by civil action or by advertisementas the board may direct. In cases of foreclosure the attorney general shallrender all services needed in connection with the foreclosure proceedings, andthe costs, fees and expenses may be taxed in like manner and to the same effectas if the state of Wyoming were a natural person. Payment of proceeds uponforeclosure shall be made in accordance with W.S. 34-4-113. All moniesreceived by the state from sale of the land acquired by foreclosure or byredemption of land sold on foreclosure, in excess of the amount owing to theappropriate permanent fund account and the interest due thereon, shall becredited to the loss reserve account as provided by W.S. 11-34-202(e). Theboard may extend the time of payment of any interest or installment payment dueon any farm loan for as long as the board deems proper, and distribute thedefaulted payments including interest, over undue payments in a manner andunder terms the board deems just, each loan to be judged on its own meritswithout regard to any general rule. It is the intention of this section toauthorize the board to consider and determine whether any mortgages executed byvirtue of this act shall be foreclosed or renewed, with or without penalty, butno renewal shall extend beyond the due date of the original loan or anyextension of the term by reamortization authorized by W.S. 11-34-113(d).
(b) Repealed By Laws 2010, Ch. 69, 204.
(c) Notwithstanding other provisions of this section the stateloan and investment board by unanimous vote may accept a deed in lieu offoreclosure, provided:
(i) The board determines any remaining liability is notcollectible; and
(ii) Any loss to any permanent fund resulting from theacceptance of the deed in lieu of foreclosure is restored as provided by W.S.11-34-202(f).
11-34-124. Interest on defaulted payments and unpaid taxes; agreementto pay; insurance required; use of proceeds; foreclosure permitted.
Every borrower shall pay interest ondefaulted payments at a rate to be determined by the board not to exceed a tenpercent (10%) annual percentage rate. By express covenant in his mortgage deedthe borrower shall agree to pay when due all interest, taxes, liens, judgments,assessments and insurance lawfully assessed against the mortgaged land. Taxes,liens, judgments, assessments or insurance not paid when due and paid by themortgagee become a part of the mortgage debt and shall bear interest at a rateto be determined by the board not to exceed a ten percent (10%) annualpercentage rate. Every borrower shall insure buildings on the lands mortgagedto the satisfaction of the board. Insurance shall be made payable to themortgagee as its interest may appear at the time of loss, and at the option ofthe mortgagee subject to the general regulations of the board. Insuranceproceeds received may be used to pay for reconstruction of the buildingsdestroyed. Nothing in this section shall prevent the commencement offoreclosure proceedings at any time upon the default of principal or interestor failure to pay any taxes, judgments, assessments, liens or insurance.
11-34-125. Repealed by Laws 1980, ch. 49, 3.
11-34-126. Exemption of property of board from taxation; exceptions.
(a) Except as otherwise provided by subsection (b) of thissection, all mortgages, real estate and other property owned by the board isexempt from all general taxes, state, county and municipal. For the purpose ofthis act the board is deemed to be the owner of any property from the date itis bid in by the board at a foreclosure sale.
(b) If the board becomes the owner of the real estate and otherproperty before the fourth Monday in June of the current year, it shall beliable for any property taxes lawfully assessed against the property, exceptfor any taxes imposed under W.S. 21-13-102, 21-13-201 and 21-13-303. Thecounty assessor shall list and assess the property for taxation purposes, andthe state loan and investment board shall pay any tax due for the year in itsentirety prior to December 31 of that year and any other year in which theboard owns the property. If redemption is made of the property at any timeduring the year in which the state loan and investment board has paid theproperty taxes due, the person redeeming the property shall be liable to thestate loan and investment board for any taxes paid. There is appropriated fromthe loss reserve account as provided by W.S. 11-34-202 to the state loan andinvestment board a sum sufficient to pay the property taxes authorized by thissection.
11-34-127. Surety bonds; generally.
Whenever a bond or undertaking is requiredby this act or by the board to be given, it shall be held to mean a surety bondfurnished by a surety company authorized and qualified to do business in thisstate. Such bonds shall run to the state loan and investment board and the formthereof shall be approved by the attorney general.
11-34-128. Surety bonds; payment of cost.
The cost of surety bonds provided by thisact, furnished by the officers or employees of said board, shall be a part ofthe general expense of the administration and paid by the board.
11-34-129. Investment of permanent funds.
The state treasurer, with the approval ofthe board, is directed to invest and keep invested in farm loans a sum not toexceed two hundred seventy-five million dollars ($275,000,000.00) of any statepermanent funds available for investment, including loans already made andoutstanding, as the funds become available in the treasurer's office forinvestment in loans approved by the board.
11-34-130. Trespass upon lands owned by board prohibited; penalties.
Whoever knowingly and willfully commits atrespass upon lands owned by the board or upon lands mortgaged to the board,either by cutting down or destroying or carrying away any timber or woodstanding or growing thereon or by grazing, mowing, cutting or removing any hay,grass or growing or matured crops thereon or who, without right, injures orremoves any building, fence, improvements or other property belonging orappertaining to the lands, or unlawfully occupies, plows or cultivates any ofthe land, or aids or abets any trespass or injury, is guilty of a misdemeanorand shall be fined not less than twenty-five dollars ($25.00) or more than fivehundred dollars ($500.00), imprisoned not less than thirty (30) days or morethan six (6) months, or both.
11-34-131. Wyoming transportation enterprise account; use thereof.
(a) The transportation enterprise account is established to beused by the state loan and investment board to finance transportation projectsof benefit to the general public as defined in this section. The transportationenterprise account shall be administered by the state loan and investmentboard, subject to recommendation and appropriation by the legislature, for thepurpose of fostering transportation investments in projects of benefit to thegeneral public within the state. The state loan and investment board shall:
(i) Adopt rules and regulations to implement the purposes ofthis section, considering other funds available including department oftransportation funds; and
(ii) Distribute funds to eligible grantees only, pursuant toappropriation of funds from the transportation enterprise fund by the legislature,subsection (c) of this section, federal requirements and rules and regulationsof the state loan and investment board.
(b) The transportation enterprise account shall receive moniesfrom mineral royalty payments as provided in W.S. 9-4-607(a). All repayments ofprincipal and interest to the state in connection with loans made under thissection shall be deposited into the transportation enterprise account.
(c) The board may make grants or loans to public entities forthe purpose of enhancing transportation in this state. Eligible uses of themonies in the fund shall include capital investments for public transportationand improvement and maintenance of airline service and facilities.
(d) In adopting rules and regulations under paragraph (a)(i) ofthis section, the board shall provide for the allocation of funds for capitalinvestments for public transportation and for purposes eligible undersubsection (c) of this section, with investment income received under W.S.9-4-607(b) being allocated to purposes eligible under subsection (c) of thissection.
(e) The state loan and investment board shall annually auditthe transportation trust fund created under W.S. 9-4-607(a) to determine theeffects of inflation on investment earnings.
ARTICLE 2 - ISSUANCE OF BONDS AND DISPOSITION OF REVENUES
(a) The board may issue its nonnegotiable debenture bonds insuch numbers and amounts as necessary to be deposited with the state treasurer.The state treasurer shall accept the bonds in lieu of the promissory notes andmortgages held by the board as security for the investment of permanent fundsof Wyoming in mortgages upon real estate.
(b) One (1) bond shall be issued for each note, in the amountof the balance due upon the principal of each note to be deposited with thestate treasurer. The bond shall bear interest at the same rate as theunderlying note and be secured by the original security pledged for the paymentto the state of the note for which the bond is issued or substituted, or by anysecurity or property taken by the board in addition to or in lieu of theoriginal security. Each bond is due and payable on the date when the note forwhich the bond was issued or substituted is due and payable.
11-34-202. Revenue to be credited to an account; use thereof;disposition of excess.
(a) Except as provided by subsection (e) of this section or asotherwise provided by law, the state loan and investment board shall transmitany revenue received to the state treasurer to be credited to a separateaccount for the purposes specified in W.S. 21-15-106(a).
(b) Repealed by Laws 1981, ch 44, 2.
(c) Repealed by Laws 1981, ch 44, 2.
(d) Following a general fund appropriation by the legislaturefor administrative expenses, amounts expended pursuant to the appropriationshall be transferred monthly from the account provided by subsection (a) ofthis section to the general fund as provided by W.S. 9-4-205(b) for the highwayfund and the special revenue fund in certain instances. Revenue currently inthe account formerly provided for by W.S. 11-34-202(a), (b) and (c), as thosesubsections existed prior to the creation of this subsection, may be expendedfor purposes formerly authorized until July 1, 1982 at which time the revenuewithin the account shall be credited to the account provided by subsection (a)of this section.
(e) Revenue and proceeds received by the board for deposit inthe loss reserve account pursuant to W.S. 11-34-118, 11-34-120(h), 11-34-121,11-34-123(a) and 11-34-302(e) shall be transmitted to the state treasurer fordeposit to the credit of the loss reserve account. These funds shall be usedfor the purposes specified in subsection (f) of this section and W.S. 11-34-126and to pay the administrative and legal expenses of the board in makingcollections and foreclosing mortgages. If at the end of any fiscal year theamount accumulated in the loss reserve account exceeds five percent (5%) of thetotal amount of permanent funds of the state invested in farm and irrigationloans, the amount in excess of the five percent (5%) shall be transferred andcredited to the general fund.
(f) If, as a result of default in the payment of any farm orirrigation loan, there occurs a nonrecoverable loss either to the corpus of, orinterest due to, any permanent fund of the state, the board shall restore theloss to the permanent fund account entitled thereto using any funds availablein the loss reserve account created by subsection (e) of this section. If thefunds in the loss reserve account are insufficient to restore the full amountof the loss, the board shall submit a detailed report of the loss to thelegislature and shall request an appropriation to restore the balance of theloss to the permanent fund account entitled thereto.
11-34-203. Report to governor; separate statement required.
The state loan and investment board shallreport to the governor as required by W.S. 9-2-1014, and include a separatestatement of all loans obtained from the state treasurer by the issuance ofbonds as herein provided, and showing the disposition of the funds.
ARTICLE 3 - LOANS
11-34-301. Water development projects; nonnegotiable debentures; loansto small projects.
(a) The state loan and investment board may issue itsnonnegotiable debenture bonds for a sum not in excess of thirty-three andone-third percent (33 1/3%) or twenty million dollars ($20,000,000.00),whichever is less, of the permanent funds of Wyoming which shall be availablefor loan by the board for the purpose set forth in W.S. 11-34-302. The statetreasurer, upon request of the state loan and investment board, shall investand keep invested a sum not to exceed thirty-three and one-third percent (331/3%) or sixty million dollars ($60,000,000.00), whichever is less, of thepermanent funds of Wyoming in the bonds of the board. One-half (1/2) of thissum shall be used for loans to small water development projects. No single loanto an individual under a small water development project shall exceed onehundred fifty thousand dollars ($150,000.00). The bonds shall be delivered tothe state treasurer and bear interest not to exceed eight percent (8%) nor lessthan four percent (4%) per annum, at the discretion of the board, payable on orbefore forty (40) years from the date of issuance.
(b) Loans shall be made only to qualified Wyoming electors orto a corporation if a majority of the corporation's outstanding shares areowned beneficially or of record by qualified Wyoming electors.
11-34-302. Water development projects; loans authorized; terms andconditions; assistance by water development commission.
(a) The board may make loans to court approved water districts,to agencies of state and local government, persons, corporations andassociations in this state, all hereinafter referred to as the borrower, tofinance the construction of water development projects. If any portion of thewater developed as a result of the construction of any project authorized bythe state loan and investment board is to be utilized for other thanagricultural, recreational or municipal purposes, the loan authorized by thestate loan and investment board may be limited to that portion of theconstruction cost apportioned to the development of the water to be utilizedfor agricultural, recreational or municipal purposes. For any water storageproject loans used for other than agricultural, recreational or municipalpurposes, the state loan and investment board may set the interest rate inexcess of four percent (4%). The state loan and investment board shall make nocommitments of state funds for such projects in excess of the funds previouslyapproved by the legislature.
(b) The state loan and investment board shall require suchsecurity as it deems advisable. The state loan and investment board may accepta second mortgage as security if the loan is otherwise adequately secured.Loans shall be at a rate of interest not to exceed six percent (6%) per annumnor less than four percent (4%) per annum and shall be for a term not to exceedforty (40) years. Upon application of the borrower the board may provide forpayment of interest only during any period in which the governor has declared thata drought or other emergency exists in this state, and thereafter for thepayment of both interest and principal on the amortization plan. The stateloan and investment board may make such other rules and regulations governingthe making of loans as it deems advisable.
(c) Upon request of the state loan and investment board, theWyoming water development commission shall provide technical assistance to theboard in reviewing loan applications and water project development.
(d) Repealed by Laws 1988, ch. 79, 11.
(e) A fee of one percent (1%) of each loan made under thissection shall be paid by the borrower to the board to be credited to the lossreserve account as provided by W.S. 11-34-202(e).
11-34-303. Area redevelopment programs; terms; rules and regulations;fund source.
(a) The state loan and investment board, with the advice of theWyoming business council created by W.S. 9-12-103, may negotiate and make loansto departments and agencies of state and local government, persons, corporationsand associations in this state, not to exceed the aggregate sum of threehundred thousand dollars ($300,000.00) at a reasonable rate of interest for aterm not to exceed forty (40) years for repayment. Each loan shall not exceedten percent (10%) of the cost of any project within a redevelopment area forindustrial or commercial usage under the area redevelopment program providedfor in chapter 28 of title 42 of the Federal Public Health and Welfare Act, 42U.S.C. 3161 and 3162.
(b) The state loan and investment board, shall make such rulesand regulations concerning loans under this section as it deems advisable butthe board shall require a mortgage or other lien upon all of the property ofthe project.
(c) Loans provided for by this section shall be made from thepermanent funds of Wyoming.
11-34-304. Lamb processing facility; loans authorized; maximum amount;interest and terms of loans.
The board may negotiate and make a loan orloans to persons, firms and corporations of this state for the purpose ofdeveloping a lamb processing facility within the state which will serve tomaintain or enhance the value or marketability of Wyoming agricultural productsand promote the economic development of Wyoming agriculture, but not to exceedthree million five hundred thousand dollars ($3,500,000.00) to any one (1)person, firm or corporation. The loan or loans shall be at a rate of interestnot less than seven percent (7%) nor more than twelve percent (12%) per annum,and shall be for a term not to exceed twenty (20) years. No loan shall exceedeighty percent (80%) of the cost of any project. Principal and interestpayments shall be deposited in the general fund.
11-34-305. Lamb processing facility; approval and regulation of loans;security.
The board shall approve the location, plansand specifications of projects submitted by loan applicants and make rules andregulations concerning the loans authorized under W.S. 11-34-304 as it deemsnecessary, but all loans shall be secured by a first mortgage upon all theproperty of the project. The board may require such additional security, as itdeems necessary, for the loans from the persons, firms, limited partnershipsand corporations receiving the loans.
