§ 274 - Loan terms and conditions - Vermont Statutes

§ 274. Loan terms and conditions

(a) Within the limits of funds available, the Vermont rehabilitation corporation may make loans to eligible applicants upon such terms and conditions as may reasonably be expected to be fulfilled by the applicant. In no event shall the total principal obligation of all Vermont economic development authority loans granted under this subchapter to any family farmer exceed $50,000.00.

(b) The Vermont rehabilitation corporation shall require the farmer to execute a note, loan agreement, security agreement, mortgage or other evidence of indebtedness in favor of the authority sufficient to protect reasonably the security of the mortgage or secured loan. All payments shall be made to the authority for the use of section 234 of this title. The Vermont economic development authority shall service all loans made by the Vermont rehabilitation corporation under this subchapter. In the event of default by a loan recipient under this subchapter, the authority shall consult with the Vermont rehabilitation corporation prior to commencing any collection or foreclosure action. (Added 1985, No. 81, § 1; amended 1993, No. 89, § 3(a), eff. June 15, 1993.)