20 ILCS 3501/830-50
2021 Illinois Compiled Statutes|Chapter 20 - EXECUTIVE BRANCH|20 ILCS 3501/ - Illinois Finance Authority Act.|Article 830 - Agricultural Assistance

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.)