SUBCHAPTER 02B ‑ FARM REAL ESTATE LOAN PROGRAMS

24 NCAC 02B .0101          LENDING PROCEDURES

(a)  The Authority will make agricultural loans to eligible borrowers to finance the acquisitions or improvement of real property from funds available to the Authority for this purpose.  The Authority shall have overall administrative responsibility for the Real Estate Loan Program.

(b)  Applicants will apply for loans on an application to be provided by the Authority.  The applicant must adhere to the requirements of the application process including providing all relevant documents requested by the Authority or FmHA, in the case of guaranteed loans.  The following application process will be implemented by the Authority:

(1)           The Authority will review the application from the applicant and make a decision as to whether to approve the application.

(2)           For guaranteed loans, approval by the Authority requires the application to be forwarded to FmHA for approval.

(3)           A denial of approval by either the Authority or FmHA does not provide the applicant any recourse unless the reason for disapproval of the loan can be remedied and is allowed by either the Authority or FmHA.

(4)           Following approval, the Authority or an agent thereof will originate and document the closing of the loan.

(c)  The Authority, or its agent, will service the loans made pursuant to this program in accordance with sound banking practices and, for guaranteed loans, applicable FmHA requirements.

History Note:        Authority G.S. 122D‑6; 122D‑7;

Temporary Rule Eff. November 18, 1988 For a Period of 180 Days to Expire on May 17, 1989;

Eff. April 1, 1989;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. April 25, 2015.

24 NCAC 02B .0102          ELIGIBLE BORROWERS

Eligible borrowers are applicants who demonstrate to the Authority that they satisfy the following criteria:

(1)           Need for an agricultural loan to finance agriculture or agribusiness;

(2)           Ability to repay the loan is demonstrated;

(3)           Collateral for the loan is sufficient; and

(4)           Can meet any other requirements which may be imposed by the Authority, or FmHA in the case of guaranteed loans, in the exercise of sound banking practices.

History Note:        Authority G.S. 122D‑2; 122D‑6;

Temporary Rule Eff. November 18, 1988 For a Period of 180 Days to Expire on May 17, 1989;

Eff. April 1, 1989;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. April 25, 2015.