§ 2-8A-6 - Application for interest loan; maximum amount; maximum rate of interest; security - Georgia Statutes

O.C.G.A. 2-8A-6 (2010)
2-8A-6. Application for interest loan; maximum amount; maximum rate of interest; security

Any lender which has made or makes a loan to a farmer to finance the nonland capital costs of establishing production of an emerging crop on land in Georgia may make application to the Georgia Development Authority for an interest loan to pay interest on the loan during the period from the beginning of production to harvest or initial sale of the product, which payment shall be made from the fund. The maximum amount of interest loans from the fund for the benefit of any one farmer shall be $50,000.00; provided, however, the Georgia Development Authority in administering the fund shall give priority to smaller interest loans. During the period that the Georgia Development Authority pays the interest on a loan from the fund, the maximum rate of interest which may be charged on the loan by the lender shall be 2 1/2 percent per annum above the prime rate charged by banks on short-term business loans as published daily in the Wall Street Journal. By payment of the interest on a loan, neither the Georgia Development Authority nor the State of Georgia shall be a guarantor of the loan. The Georgia Development Authority shall, by rule or regulation, require such security or lien as may be necessary to provide adequate security for the authority as condition for making an interest loan as authorized by this chapter.