(20 ILCS 3501/830-50)
Sec. 830-50. Specialized Livestock Guarantee Program.
(a) The Authority is authorized to issue State Guarantees to lenders for
loans
to finance or refinance debts for specialized livestock operations that are or
will be located in Illinois. For purposes of this
Section, a "specialized
livestock operation" includes, but is not limited to, dairy, beef, and swine
enterprises. For purposes of this Section, a specialized livestock operation also includes livestock operations using anaerobic digestors to generate electricity.
(b) Lenders shall apply for the State Guarantees on forms provided by the
Authority and certify that the application and any other documents submitted
are true and correct. The lender or borrower, or both in combination, shall pay
an administrative fee as determined by the Authority. The applicant shall be
responsible for paying any fee or charge involved in recording mortgages,
releases, financing statements, insurance for secondary market issues, and any
other similar fee or charge that the Authority may require. The application
shall, at a minimum, contain the farmer's name, address, present credit and
financial information, including cash flow statements, financial statements,
balance sheets, and any other information pertinent to the application, and the
collateral to be used to secure the State Guarantee. In addition, the borrower
must certify to the Authority that, at the time the State Guarantee is
provided,
the borrower will not be delinquent in the repayment of any debt. The lender
must agree to charge a fixed or adjustable interest rate that the Authority
determines to be below the market rate of interest generally available to the
borrower. If both the lender and applicant agree, the interest rate on the
State guaranteed loan can be converted to a fixed interest rate at any time
during the term of the loan.
(c) State Guarantees provided under this
Section (i) shall not exceed
$1,000,000 per applicant, (ii) shall be no longer than 15 years in duration,
and
(iii) shall be subject to an annual review and renewal by the lender and the
Authority. An applicant may use this program more than once, provided that the
aggregate principal amount of State Guarantees under this
Section to that
applicant does not exceed $1,000,000. A State Guarantee shall not be revoked by
the Authority without a 90-day notice, in writing, to all parties.
(d) The Authority shall provide or renew a State Guarantee to a lender if:
(i) The lender pays a fee equal to 25 basis points on the loan to the Authority
on
an annual basis. (ii) The application provides collateral acceptable to the
Authority that is at least equal to the State Guarantee. (iii) The lender
assumes all responsibility and costs for pursuing legal action on collecting
any
loan that is delinquent or in default. (iv) The lender is at risk for the first
15% of the outstanding principal of the note for which the State Guarantee is
provided.
(e) The Illinois Agricultural Loan Guarantee Fund and the Illinois Farmer and Agribusiness Loan Guarantee Fund may be used to
secure State Guarantees issued under this
Section as provided in
Section 830-30 and Section 830-35, respectively.
(f) Notwithstanding the provisions of this
Section 830-50 with respect to the
specialized livestock operations and lenders who may obtain State Guarantees,
the Authority may promulgate rules establishing the eligibility of specialized
livestock operations and lenders to participate in the State Guarantee program
and the terms, standards, and procedures that will apply, when the Authority
finds that emergency conditions in Illinois agriculture have created the need
for State Guarantees pursuant to terms, standards, and procedures other than
those specified in this Section.
(Source: P.A. 95-697, eff. 11-6-07; 96-897, eff. 5-24-10.)
|