Document ID: chunk:federal_register_of_legislation:F2019C00466:reg:10
Version: federal_register_of_legislation:F2019C00466
Segment Type: reg
Provision Reference: reg 10
Character Range: 11289–12870

10  Terms of Agribusiness Natural Disaster Loans
 (1) Subject to the requirements in subsections (2) and (3), the Corporation may set the terms and conditions upon which a loan is made.

Requirements regarding terms of loan
 (2) The requirements are that:
 (a) the amount of the loan does not exceed $5 million; and
 (b) the duration of the loan is 10 years; and
 (c) the farm business may, at any time before the amount becomes due and payable, repay the whole or part of an amount of principal or interest owing on the loan without penalty; and
 (d) the farm business must provide sufficient security for the loan.

Requirements regarding principal and interest
 (3) The requirements are that:
 (a) for the first 2 years of the loan—no interest is payable; and
 (b) for the remaining 8 years of the loan—interest is payable at the rate mentioned in subsection (4); and
 (c) for the first 5 years of the loan—no principal is payable; and
 (d) for the remaining 5 years of the loan—principal is payable.
 (4) For the purposes of paragraph (3)(b)—the Corporation must set a variable interest rate, and notify loan recipients of changes to that rate, in accordance with section 8 of the Regional Investment Corporation Operating Mandate Direction 2018.

Types of security the Corporation must consider
 (5) For the purposes of paragraph (2)(d), the Corporation must consider requiring security in the form of:
 (a) a registered mortgage over land; or
 (b) a registered mortgage over livestock; or
 (c) a registered security interest in water rights.

Part 3—Administrative matters