NY Soil & Wat Cons Dists L § 4-A (2021)
2021 New York Laws SWC - Soil and Water Conservation Districts Article 2 - State Soil and Water Conservation Committee, Soil and Water Conservation Districts, and Other Functions 4-A - Farm Drain Tile Revolving Loan Program.

§  4-a.  Farm  drain tile revolving loan program. (1) Definitions. (a) "Farm drain tile project."  A  specific  work  or  improvement  that  is undertaken   by   an  agricultural  producer  for  the  construction  or improvement of drain tile for the purpose of enhancing farm fields.  (b) "Local loan administrator." A farm credit bureau or member of  the farm   credit  system  or  a  banking  institution  or  non-governmental organization with a demonstrated ability to provide financial assistance and service to agricultural rural areas, that have entered into a master servicing agreement prescribed  pursuant  to  subdivision  two  of  this section.  (2)   Master  servicing  agreement.  (a)  The  state  soil  and  water conservation committee ("committee") is hereby  authorized  to  use  the monies  held in the farm drain tile revolving loan fund to make advances to a local loan administrator that has entered  into  a  written  master servicing  agreement  prescribed  by the committee pursuant to paragraph (b) of this subdivision.  (b)  The  committee,  in  consultation  with  the  comptroller,  shall prescribe  a  master servicing agreement to be executed by the committee and local loan administrators. Such agreement shall  provide  that:  (i) any advances made to a local loan administrator shall be used solely for the purpose of providing loans to agricultural producers for undertaking farm  drain  tile  projects;  (ii) the total amount of loans made to any single agricultural producer shall not exceed fifty thousand dollars per annum; (iii) the term of any loan shall not exceed ten years  and  equal payments  of principal payable no less frequently than annually shall be required to  be  made  on  such  loan  during  the  term  such  loan  is outstanding  which  payments will liquidate the entire principal balance of the loan over its term; (iv) the local loan administrator is required to pay to the committee for deposit into the farm drain  tile  revolving loan  fund  all repayments including interest, if any, received from any agricultural producers on account of such loan, except for that  portion permitted  to  be  retained  by  the  local  loan administrator as a fee pursuant  to  the  master  servicing  agreement.  The  master  servicing agreement  shall  also  set forth: (i) the form of any note and security agreement to be executed by the agricultural producer in connection with any loan; (ii) the rate of interest, if any, to be charged on any  loan; (iii)  the  amount  of  any  fee  to  be  retained  by  the  local  loan administrator for servicing any  loan;  (iv)  the  form  of  application required  to  be completed by an agricultural producer for any loan; (v) the form of requisition and certification to be required  from  a  local loan  administrator  to  obtain  an advance of funds from the committee; (vi) any other conditions to be imposed upon an agricultural producer as a condition of receiving  a  loan;  (vii)  the  responsibilities  to  be performed  by the local loan administrator in connection with reviewing, approving and servicing the loan and the circumstances under  which  the committee  may terminate a master servicing agreement; (viii) conditions necessary to  insure  prompt  closing  on  loans  for  which  funds  are advanced,  including payment of interest of funds from the time advanced until utilized; and (ix) such other requirements as  the  committee  may from time to time establish by rules and regulations consistent with the purposes of this section.  (3)  (a)  The committee shall, subject to the availability of funds as appropriated by the  legislature,  advance  from  the  farm  drain  tile revolving  loan  fund  to a local loan administrator the amount of funds requested in any requisition within fifteen business days after  receipt of  all  of  the  following:  a  completed requisition for an advance of funds; copies of any applications and any  supporting  documentation  to which such requisition pertains; and a certification from the local loan  administrator  with respect to such requisition in addition to any other representation  and   statement   required   by   the   committee.   The certification  from  the  local loan administrator shall state that: (i) the  loan administrator has performed its responsibilities in connection with review and approval  of  applications  to  which  such  requisition pertains,  (ii)  to the best of the local loan administrator's knowledge the loans, to  which  the  advances  pertain,  comply  with  the  master servicing  agreement  and  the provisions of this section, and (iii) the borrowers  have  demonstrated  their  ability  to  make  the  repayments required  under  the  loan. In the event that funds are not available or the  committee  determines  that   the   requisition,   application   or certification   is   defective,  it  shall  so  notify  the  local  loan administrator  within  fifteen  business  days  after  receipt  of   the requisition.  (b)  The  committee  shall  establish  criteria  for prioritizing loan applications in  the  event  that  the  requisitions  submitted  to  the committee  by  one  or  more local loan administrators exceed the amount then  available  for  the  purposes  of  this  section.  In  determining priority,  the  committee  shall take into account: (i) whether the farm drain tile project to which the application pertains is  the  most  cost effective  approach  to enable the agricultural producer to construct or improve farm drain tile on  the  farm;  (ii)  whether  the  agricultural producer  making  application lacks the financial resources to undertake the farm drain tile project without obtaining a loan  pursuant  to  this section;  and  (iii) such other factors as the committee deems relevant. In applying the criteria to be  utilized  for  prioritizing  loans,  the committee  shall be entitled to rely on the information contained in the copies of the applications submitted with the requisition.  (4) Examination by comptroller. The comptroller, or his or her legally authorized representative, is hereby authorized and empowered from  time to  time  to examine the books and accounts of the committee relating to the farm drain tile fund, and from time to time, to  examine  the  books and accounts of any local loan administrator which has received advances from such fund pursuant to this section, but only insofar as those books and   accounts   relate   to   such  advances  and  to  the  local  loan administrator's compliance with the master servicing  agreement  entered into pursuant to this section.  (5) Establishment of fund. (a) There is hereby created and established in  the  committee  a revolving loan fund to be known as the "farm drain tile revolving loan fund."  (b) There shall be paid into such farm drain tile revolving loan  fund (i)  any  moneys  appropriated  and  made available by the state for the purposes of such fund, (ii) notwithstanding the provisions of the  state finance  law  or  any  other  provision  of  law,  any  moneys which the committee shall receive in repayment of advances made  from  such  fund, and  (iii) any other moneys which may be made available to the committee for the purpose of such fund from any other source or sources.  (c) All moneys paid into the fund from repayments of loans  authorized by subdivision three of this section shall continue to be made available for the purpose of providing loans pursuant to such subdivision.  (d)  Any  moneys  held in such farm drain tile revolving loan fund not required for immediate disbursement may be invested, at  the  discretion of  the  committee,  in  obligations  of  the state or the United States government or obligations  the  principal  and  interest  of  which  are guaranteed  by  the state or the United States government. Any income or interest earned by, or increment to, such farm drain tile revolving loan fund shall be added to the moneys held in such  fund  for  the  purposes herein provided.  (6)  Rules  and  regulations. The committee is empowered to promulgate such rules and regulations and to prescribe such forms as it shall  deem necessary to effectuate the purposes of this section.