4-31-203 - Loans General power of authority. - Tennessee Statutes

4-31-203. Loans General power of authority.

(a)  The authority may make, and undertake commitments to make, loans to or deposits with lenders under the agricultural development loan program for the financing of certain agricultural enterprises under terms and conditions that shall:

     (1)  Require the proceeds thereof to be used by such lenders to make loans for agricultural enterprises; and

     (2)  Require that no loans made by such lenders to finance a single agricultural enterprise shall exceed the aggregate principal amount of five hundred thousand dollars ($500,000).

(b)  The authority may invest in, purchase or make commitments to invest in or purchase, and take assignments of, loans made by lenders for the construction, rehabilitation or purchase of agricultural enterprises. No loan shall be eligible for investment in, purchase or assignment by the authority:

     (1)  If the loan was initially made more than six (6) months prior to the date of investment, purchase or assignment; or

     (2)  If the aggregate principal amount of the loan received by a person exceeds five hundred thousand dollars ($500,000), and in computing that amount a loan received by an individual shall be aggregated with those loans received by such individual's spouse and children, and a loan received by a firm, partnership or corporation shall be aggregated with those loans received by each owner, partner or stockholder thereof.

[Acts 1981, ch. 394, § 6; 1983, ch. 115, § 1.]