20 ILCS 3501/830-45
2021 Illinois Compiled Statutes|Chapter 20 - EXECUTIVE BRANCH|20 ILCS 3501/ - Illinois Finance Authority Act.|Article 830 - Agricultural Assistance

Sec. 830-45. Young Farmer Loan Guarantee Program.(a) The Authority is authorized to issue State Guarantees to lenders for  loans  to finance or refinance debts of young farmers. For the purposes of this  Section, a young farmer is a resident of Illinois who is at least 18 years of  age and who is a principal operator of a farm or land, who derives at least 50%  of annual gross income from farming, whose net worth is not less than $10,000  and whose debt to asset ratio is not less than 40%. For the purposes of this  Section, debt to asset ratio means current outstanding liabilities, including  any debt to be financed or refinanced under this  Section 830-45, divided by  current outstanding assets. The Authority shall establish the maximum  permissible debt to asset ratio based on criteria established by the Authority.  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 young 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.  State Guarantees provided under this  Section (i) shall not exceed $500,000 per  young farmer, (ii) shall be set up on a payment schedule not to exceed 30  years,  but 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. A young farmer  may  use this program more than once provided the aggregate principal amount of  State  Guarantees under this  Section to that young farmer does not exceed $500,000. No  State Guarantee shall be revoked by the Authority without a 90-day notice, in  writing, to all parties.(b) 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.(c) The Illinois Agricultural Loan Guarantee Fund, the Illinois Farmer and Agribusiness Loan Guarantee Fund, and the Industrial Project Insurance Fund may be used to  secure State Guarantees issued under this  Section as provided in  Section 830-30, Section 830-35, and subsection (j) of Section 805-20, respectively. All payments by the Authority to satisfy claims against the State Guarantee shall be made, in whole or in part, from any of the following funds in such order and in such amounts as the Authority shall determine: (1) the Industrial Project Insurance Fund (if the Authority exercises its discretion under subsection (j) of Section 805-20); (2) the Illinois Agricultural Loan Guarantee Fund; or (3) the Illinois Farmer and Agribusiness Loan Guarantee Fund.(d) Notwithstanding the provisions of this  Section 830-45 with respect to the  young farmers and lenders who may obtain State Guarantees, the Authority may  promulgate rules establishing the eligibility of young farmers 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. 99-509, eff. 6-24-16.)