Pennsylvania Code › Title 7 - AGRICULTURE › Part V-C - Farmland and Forest Land › Chapter 138a - FAMILY FARM DEVELOPMENT PROGRAM › Section 138a.2 - Definitions

Current through Register Vol. 54, No. 28, July 13, 2024
The following words and terms, when used in this chapter,
				  have the following meanings, unless the context clearly indicates
				  otherwise:
Applicant
-A family farm enterprise applying
				  for a family farm loan guarantee or an interest deferral.
Area loan organization
-A local development
				  district of the Appalachian Regional Commission, an industrial development
				  corporation organized and existing under the Pennsylvania Industrial
				  Development Authority Act (73 P. S. §
										§
										301-314) or another nonprofit economic
				  development organization certified by the Secretary and the Secretary of
				  Commerce as possessing an acceptable loan review committee, professional staff
				  support and other qualifications that are necessary to evaluate and administer
				  loan guarantees and interest deferrals made under the Agricultural Development
				  Act (3 P. S. §
										§
										1301-1314).
Borrower
-A person or equity, who
				  participates in the Family Farm Development Program and meets one of the
				  following eligibility criteria:
(i) A
				natural person domiciled in this Commonwealth or showing evidence of intention
				to establish a domicile in this Commonwealth. The person shall reside on or
				actively operate or manage a family farm.
(ii) A Commonwealth corporation formed for
				the purpose of conducting a family farm enterprise in which the majority of the
				voting stock is owned by natural persons who are engaged in farming on behalf
				of the corporation or are the spouses or relatives of the persons. Individuals
				holding the majority of voting stock shall be domiciled in this Commonwealth or
				show evidence of their intention to establish a domicile in this Commonwealth.
				At least one of the majority stockholders shall reside on or actively operate
				or manage the family farm, and none of the stockholders may be
				corporations.
(iii) A general
				family farm partnership entered into for the purpose of farming, and having no
				more than three unrelated members. One of the members shall reside on or
				actively operate or manage the family farm.
Committee
-The Agricultural Development
				  Advisory Committee.
Commodities
-Agricultural crops, livestock or
				  livestock products, poultry or poultry products, milk and dairy products,
				  aquaculture or fruit or other horticultural products.
Department
-The Department of Agriculture of
				  the Commonwealth.
Family farm enterprise
-The term includes one
				  of the following:
(i) A natural
				person, family farm corporation or family farm partnership engaged in farming,
				including the processing and marketing of its agricultural commodities
				directly, if the agricultural commodities are or would be produced on the farm
				for which financial assistance is sought.
(ii) A natural person domiciled in this
				Commonwealth or showing evidence of intention to establish a domicile in this
				Commonwealth. The person shall reside on or actively operate or manage the
				family farm or intend to do so within 6 months from the date the Secretary
				grants the interest deferral or loan guarantee.
Lender
-A bank, savings bank, mutual savings
				  bank, building and loan association or savings and loan association, organized
				  under the statutes of the Commonwealth or the United States; trust companies
				  and trust companies acting as fiduciaries; other financial institutions subject
				  to the supervision of the Department of Banking; foreign or domestic insurance
				  companies subject to the supervision of the Insurance Commissioner; financial
				  institutions operating under the supervision of the Federal Farm Credit
				  Administration; or the seller of property in the case of a seller-sponsored
				  loan or purchase money loan.
Secretary
-The Secretary of the
				  Department.