7 Pa. Code § 138a.2

Current through Register Vol. 54, No.43, October 26, 2024

Section 138a.2 - Definitions

The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise:

Applicant-A family farm enterprise applying for a family farm loan guarantee or an interest deferral.

Area loan organization-A local development district of the Appalachian Regional Commission, an industrial development corporation organized and existing under the Pennsylvania Industrial Development Authority Act (73 P. S. § § 301-314) or another nonprofit economic development organization certified by the Secretary and the Secretary of Commerce as possessing an acceptable loan review committee, professional staff support and other qualifications that are necessary to evaluate and administer loan guarantees and interest deferrals made under the Agricultural Development Act (3 P. S. § § 1301-1314).

Borrower-A person or equity, who participates in the Family Farm Development Program and meets one of the following eligibility criteria:

(i) A natural person domiciled in this Commonwealth or showing evidence of intention to establish a domicile in this Commonwealth. The person shall reside on or actively operate or manage a family farm.

(ii) A Commonwealth corporation formed for the purpose of conducting a family farm enterprise in which the majority of the voting stock is owned by natural persons who are engaged in farming on behalf of the corporation or are the spouses or relatives of the persons. Individuals holding the majority of voting stock shall be domiciled in this Commonwealth or show evidence of their intention to establish a domicile in this Commonwealth. At least one of the majority stockholders shall reside on or actively operate or manage the family farm, and none of the stockholders may be corporations.

(iii) A general family farm partnership entered into for the purpose of farming, and having no more than three unrelated members. One of the members shall reside on or actively operate or manage the family farm.

Committee-The Agricultural Development Advisory Committee.

Commodities-Agricultural crops, livestock or livestock products, poultry or poultry products, milk and dairy products, aquaculture or fruit or other horticultural products.

Department-The Department of Agriculture of the Commonwealth.

Family farm enterprise-The term includes one of the following:

(i) A natural person, family farm corporation or family farm partnership engaged in farming, including the processing and marketing of its agricultural commodities directly, if the agricultural commodities are or would be produced on the farm for which financial assistance is sought.

(ii) A natural person domiciled in this Commonwealth or showing evidence of intention to establish a domicile in this Commonwealth. The person shall reside on or actively operate or manage the family farm or intend to do so within 6 months from the date the Secretary grants the interest deferral or loan guarantee.

Lender-A bank, savings bank, mutual savings bank, building and loan association or savings and loan association, organized under the statutes of the Commonwealth or the United States; trust companies and trust companies acting as fiduciaries; other financial institutions subject to the supervision of the Department of Banking; foreign or domestic insurance companies subject to the supervision of the Insurance Commissioner; financial institutions operating under the supervision of the Federal Farm Credit Administration; or the seller of property in the case of a seller-sponsored loan or purchase money loan.

Secretary-The Secretary of the Department.

7 Pa. Code § 138a.2