Section 104 – Loans — Not to exceed period of 10 years — Agricultural Advisory Board executive committee to approve loans and renewals, methods of payments, and interest rates — Guidelines in fixing interest rates declared.

• (1) The department may not make a loan authorized under this chapter for a period to exceed 10 years, but the loan is renewable.

• (2) Except as provided in Subsection (5), the Agricultural Advisory Board executive committee created in Section 4-2-108 shall approve:
  • (a) loans and renewals;
  • (b) the methods of repayment; and
  • (c) the interest rates charged.

• (3) In fixing interest rates, the Agricultural Advisory Board executive committee shall consider:
  • (a) the current applicable interest rate or rates being charged by the USDA Farm Service Agency on similar loans;
  • (b) the current prime rate charged by leading lending institutions; and
  • (c) any other pertinent economic data.

• (4) The interest rates established shall be compatible with guidelines stated in this section.

• (5) The Agricultural Advisory Board executive committee may create a subcommittee from the Agricultural Advisory Board membership to approve a loan or renewal under this section.

Amended by Chapter 126, 2021 General Session