2012 Vermont Statutes
Title 10 Conservation and Development
Chapter 16A VERMONT AGRICULTURAL CREDIT PROGRAM
§ 374h Loan eligibility standards

§ 374h. Loan eligibility standards

A farmer, or a limited liability company, partnership, corporation or other business entity the majority ownership of which is vested in one or more farmers, shall be eligible to apply for a farm ownership or operating loan, provided the applicant is:

(1) a resident of this state and will help to expand the agricultural economy of the state;

(2) an owner, prospective purchaser or lessee of agricultural land in the state or of depreciable machinery, equipment or livestock to be used in the state;

(3) a person of sufficient education, training or experience in the operation and management of an agricultural facility or farm operation of the type for which the applicant requests the loan;

(4) an operator or proposed operator of an agricultural facility or farm operation for whom the loan reduces investment costs to an extent that offers the applicant a reasonable chance to succeed in the operation and management of an agricultural facility or farm operation;

(5) a creditworthy person under such standards as the corporation may establish;

(6) able to provide and maintain adequate security for the loan by a mortgage on real property or a security agreement and perfected financing statement on personal property;

(7) able to demonstrate that the applicant is responsible and able to manage responsibilities as owner or operator of the farm operation or agricultural facility;

(8) able to demonstrate that the applicant has made adequate provision for insurance protection of the mortgaged or secured property while the loan is outstanding;

(9) a person who possesses the legal capacity to incur loan obligations;

(10) in compliance with such other reasonable eligibility standards as the corporation may establish;

(11) able to demonstrate that the project plans comply with all regulations of the municipality where it is to be located and of the state of Vermont;

(12) able to demonstrate that the making of the loan will be of public use and benefit;

(13) able to demonstrate that the proposed loan will be adequately secured by a mortgage on real property with a satisfactory maturity date in no event later than 20 years from the date of inception of the mortgage, or by a security agreement on personal property with a satisfactory maturity date in no event longer than the average remaining useful life of the assets in which the security interest is being taken; and

(14) there will be sufficient projected cash flow to service a reasonable level of debt, including the loan or loans, being considered by the corporation. (Added 1999, No. 25, § 1; amended 2003, No. 67, § 7, eff. June 16, 2003.)