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ACT NO. 7

(H. 476)

Farm Loan Payment Guarantees; Direct Loans to Farms

This act authorizes the Vermont Agriculture Credit Corporation (VACC) to establish and implement an Agricultural Loan Payment Guarantee program under which up to nine months of deferred installment payments of principal and interest granted by a financial institution to a borrower on an agricultural loan, to a maximum of $100,000.00 per borrower, is insured. The act authorizes up to $2,500,000.00 of the full faith and credit of the state pledged to the support of the activities of the Vermont Economic Development Authority (VEDA) to be used for the purposes of this program.

The act also authorizes the VACC to establish and implement a Farm Operating Loan program to provide up to $20,000,000.00 in subsidized below-market rate operating loans to eligible farmers, not to exceed $100,000.00 to any borrower. The act also adjusts the moral obligation limit of VEDA to secure the debt service reserve funds to support the lending operations of the VACC for the purpose of this program.

Effective Date: From passage, April 25, 2003.