N.D. Cent. Code § 6-09-15.5

6-09-15.5. Bank loans to beginning farmers - Revolving loan fund - Requirements

1. A revolving loan fund must be maintained in the Bank of North Dakota for the purpose

of making or participating in loans to North Dakota beginning farmers for the purchase

of agricultural real estate, equipment, and livestock. All moneys transferred into the

fund, interest upon moneys in the fund, and payments to the fund of principal and

interest on loans made from the fund are appropriated for the purpose of providing

loans and to supplement the interest rate on loans to beginning farmers made by the

Bank of North Dakota under subdivision c of subsection 1 of section 6-09-15 and in

accordance with this section.

2. The revolving loan fund and loans made from the fund must be administered and

supervised by the Bank of North Dakota. The Bank may deduct a service fee for

administering the fund from interest payments received on loans. An application for a

loan from the fund must be made to the Bank and, upon approval, a loan must be

made from the fund in accordance with this section.

3. A loan made from the fund may not exceed eighty percent of the appraised value of

the agricultural collateral, with the actual percentage to be determined by the Bank.

The Bank may do all things and acts and may establish additional terms and

conditions necessary to make a loan under this section. A loan made from the fund

must have a first security interest.

4. A loan made from the fund must have either a fixed rate at one percent below the

Bank's then current base for ten years or the interest rate fixed at one percent below

the Bank's then current base rate for the first five years with a maximum rate of six

percent per year and variable at one percent below the Bank's then current base rate

for the second five years and during the second five years, the variable rate must be

adjusted annually on the anniversary date. The rate during the remaining term of the

loan floats at the Bank's base rate as in effect from time to time.

5. The maximum term of a real estate loan is thirty years. The maximum term of a farm

equipment or livestock loan is seven years.

6. The fund must be audited annually pursuant to section 6-09-29, and the cost of the

audit and any other actual costs incurred by the Bank on behalf of the fund, must be

paid for by the fund.

7. The Bank shall adopt policies to implement this section.

8. Notwithstanding any other provision of law, the Bank may transfer any unobligated

funds between funds that have been appropriated by the legislative assembly for

interest buydown in the beginning farmers loan fund and the agriculture partnership in

assisting community expansion fund.

9. Notwithstanding any other provision of law, the Bank may transfer any unobligated

funds to the value-added agriculture equity loan program for the purpose of interest

buydown on a loan made for investment in a feedlot or dairy operation. Fund transfers

under this subsection may not exceed one million dollars during a biennium.