12 U.S.C. § 1141e : US Code - Section 1141E: Loans to cooperative associations

Search 12 U.S.C. § 1141e : US Code - Section 1141E: Loans to cooperative associations

(a) Upon application by any cooperative association the
administration is authorized to make loans to it from the revolving
fund to assist in -
(1) the effective merchandising of agricultural commodities and
food products thereof and the financing of its operations;
(2) the construction or acquisition by purchase or lease, or
refinancing the cost of such construction or acquisition, of
physical facilities.
(b) No loan shall be made to any cooperative association unless,
in the judgment of the administration, the loan is in furtherance
of the policy declared in section 1141 of this title, and the
cooperative association applying for the loan has an organization
and management, and business policies, of such character as to
insure the reasonable safety of the loan and the furtherance of
such policy.
(c) Loans for the construction or acquisition by purchase or
lease of physical facilities, or for refinancing the cost of such
construction or acquistion,(!1) shall be subject to the following
conditions:
(1) No loan shall be made in an amount in excess of 60 per
centum of the appraised value of the security therefor.
(2) No loan for the purchase or lease of such facilities shall
be made unless the Governor of the Farm Credit Administration
finds that the purchase price or rent to be paid is reasonable.
(d) Loans for the construction or purchase of physical
facilities, together with interest on the loans, shall be repaid
upon an amortization plan over a period not in excess of twenty
years.