(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.
(June 15, 1929, ch. 24, §7, 46 Stat. 14; Ex. Ord. No. 6084, Mar. 27, 1933; June 16, 1933, ch. 98, title V, §§50–53, 48 Stat. 265; June 3, 1935, ch. 164, §§9, 10, 49 Stat. 316.)
Sections: Previous 635s 635t 1141 1141b 1141c 1141d 1141d-1 1141e 1141f 1141h 1141i 1141j 1148 1148a-4 1148b Next
Last modified: October 26, 2015