N.Y. Comp. Codes R. & Regs. tit. 21 § 2607.5

Current through Register Vol. 46, No. 43, October 23, 2024

Section 2607.5 - Loan eligibility

(a) Security for loans. The corporation may take security for any loan. The form of security may include, but not be limited to, a promissory note, security agreement, or mortgage.

(b) Loan conditions. Except as provided in section 2607.6 of this Part, the conditions of a loan shall be as determined by the corporation in conjunction with the bond purchaser from time to time and shall be contained in the security and servicing documents relating to the loan. Loan conditions may include, but are not limited to, fees and interest rates, maximum loan amount, amortization period, repayment, prepayment, assumption, and assumption terms.

(c) A loan may not be assigned by the beginning farmer, nor may any interest in agricultural land, agricultural improvements or agricultural depreciable property financed under the NYBFLP be leased, sold, exchanged or used as a trade-in, used on an equipment-for-hire basis or otherwise conveyed without the prior written consent of the corporation and the lender.

(d) Loan delinquency, foreclosure, and repossession provisions shall be determined from time to time by the bond purchaser and shall be contained in the security and financing documents relating to the loan.

(e) The beginning farmer or bond purchaser must submit to the corporation a nonrefundable application fee of $150 with the application. A loan fee, equal to 1.5 percent of the principal amount of the bond, but not less than $750, must be submitted to the corporation by the beginning farmer or bond purchaser at the time of closing.

(f) The corporation may require that the bond purchaser furnish any information which the corporation deems necessary to determine whether the bond purchaser qualifies as a bond purchaser.

(g) The corporation's ability to finance a project is subject to the availability of funds.

N.Y. Comp. Codes R. & Regs. Tit. 21 § 2607.5