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House Journal: Page 1553: Thursday, April 13, 1995

19   sale.  The purchase must be for a portion of the
20   business which is essential to its continued
21   viability, including real estate where the business is
22   located, fixtures attached to the real estate,
23   equipment relied upon by the business, and inventory
24   for sale by the business.
25     5.  The eligible lending institution shall apply
26   all usual lending standards to determine the
27   creditworthiness of each eligible borrower.  The
28   lending institution shall forward to the treasurer of
29   state all information or any certification relating to
30   the loan required and in a manner prescribed by this
31   division and rules which shall be adopted by the
32   treasurer of state.
33     6. 4.  A In order to qualify as an
eligible
34   borrower, a borrower and the seller of the rural small
35   business shall not be within the third degree of
36   consanguinity or affinity.
37     5.  Loan proceeds shall not be used to refinance
38   existing debt, including credit card debt.  However,
39   proceeds may be used to refinance a short-term bridge
40   loan made in anticipation of the treasurer's approval
41   of the linked investment loan package.
42     7. 6.  The maximum loan amount that a borrower may
43   receive under this program shall not be more than be
44   fifty thousand dollars.
45     8. Not more than one-third of the amount of the
46   percentage authorized in section 12.34 may be used for
47   purposes of supporting this program and the main
48   street linked investment loan program under section
49   12.51.
50     Sec. ___.  NEW SECTION.  12.41  HORTICULTURAL AND

Page 6

 1   NONTRADITIONAL CROPS LINKED INVESTMENT LOAN PROGRAM.
 2     The treasurer of state shall adopt rules to
 3   implement a horticultural and nontraditional crops
 4   linked investment loan program to provide statewide
 5   availability of lower cost funds for lending that will
 6   stimulate existing or encourage new businesses in the
 7   areas of producing, processing, or marketing
 8   horticultural or nontraditional crops.  The rules
 9   shall be in accordance with the following:
10     1.  In order to qualify as an eligible borrower,
11   the loan application shall be for the purchase or
12   lease of land, machinery, equipment, or the purchase
13   of other inputs used in the business of producing,
14   processing, or marketing horticultural or
15   nontraditional crops as defined by the treasurer.
16     2.  Loan proceeds shall not be used to refinance
17   existing debt, including credit card debt.  However,
18   proceeds may be used to refinance a short-term bridge
19   loan made in anticipation of the treasurer's approval
20   of the linked investment loan package.
21     3.  The maximum loan amount that an eligible
22   borrower may receive under this program is one hundred

Iowa General Assembly

Index: House Journal (76th General Assembly: Session 1)

© 1995 Cornell College and League of Women Voters of Iowa

Comments? hjourn@legis.iowa.gov.

Last update: Sun Jan 14 21:05:02 CST 1996
URL: /DOCS/GA/76GA/Session.1/HJournal/01500/01553.html
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