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H.774

AN ACT RELATING TO THE VERMONT ECONOMIC DEVELOPMENT AUTHORITY

It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1.  10 V.S.A. § 216(15) is amended to read:

(15)  To delegate to loan officers the power to review, approve and make loans under this chapter, subject to the approval of the manager, and to disburse funds on such loans, subject to the approval of the manager, provided that such loans do not exceed $250,000.00 in aggregate amount for any industrial loan for any three-year period for any particular individual, partnership, corporation or other entity or related entity, or do not exceed $200,000.00 in aggregate amount if the loan is guaranteed by the Farm Services Agency, or its successor agency, or $150,000.00 in aggregate amount if the loan is not guaranteed by the Farm Services Agency, or its successor agency, for any agricultural loan for any three-year period for any particular individual, partnership, corporation, or other entity or related entity.  No funds may be disbursed for any loan approved under this provision, except for any agricultural loan referenced above in an amount not to exceed $50,000.00, until three working days after the members of the authority are notified by facsimile, electronic mail, or overnight delivery, mailed or sent on the day of approval, of the intention to approve such loan.  If any member objects within that three-day period, the approval will be held for reconsideration by the members of the authority at its next duly scheduled meeting.

Sec. 2.  10 V.S.A. § 262(5) is amended to read:

(5)  The principal obligation of the authority’s mortgage does not exceed $1,300,000.00 of which no more than $800,000.00 may be secured by land and buildings and no more than $500,000.00 may be secured or by machinery and equipment, or both; unless an integral element of the project consists of the generation of heat or electricity employing biomass, geothermal, methane, solar, or wind energy resources to be primarily consumed at the project, in which case the principal obligation of the authority’s mortgage does not exceed $2,000,000.00, of which no more than $1,500,000.00 may be secured by land and by buildings, and no more than $500,000.00 may be secured by or machinery and equipment, or both; such principal obligation does not exceed 40 percent of the cost of the project; and the mortgagor is able to obtain financing for the balance of the cost of the project from other sources as provided in the following section;

Sec. 3.  10 V.S.A. § 374a(b) is amended to read:

(b)  No borrower shall have loans be approved for a loan from the corporation outstanding at any time having an aggregate principal balance in excess of $500,000.00 that would result in the aggregate principal balances outstanding of all loans to that borrower exceeding the then current maximum Farm Service Agency loan guarantee limits.

Sec. 4.  10 V.S.A. § 374b(7) and (8) are amended to read:

(7)  “Farmer” means an individual directly engaged in the management or operation of an agricultural facility or farm operation for whom the agricultural facility or farm operation constitutes two or more of the following:

(A)  the is or is expected to become a significant source for the majority of the farmer’s income;

(B)  the majority of the farmer’s assets; and

(C)  an occupation the farmer’s primary occupation farmer is actively engaged in, either on a seasonal or year-round basis.

(8)  “Farm operation” shall mean the cultivation of land or other uses of land for the production of food, fiber, horticultural, orchard, maple syrup, Christmas trees, or forest crops; the raising, boarding, and training of equines, and the raising of livestock; or any combination of the foregoing activities. Farm operation also includes the storage, preparation, retail sale, and transportation of agricultural commodities accessory to the cultivation or use of such land.



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us