LAC 7:V.1509 – Application for Farm Youth Loans and Loan Guarantees

A. The applicant must meet all criteria for eligibility set forth in §1503.
B. The loan shall have a maximum term of five years.
C. The loan shall not exceed a maximum of $3,000.
D. In the case of a guaranteed loan, the guarantee shall not exceed 75 percent of the sums, in principal and interest, due and payable under the mortgage or crop lien securing the loan.
E. The interest rate on any direct loan shall not exceed the interest rate charged by the Farmer's Home Administration on youth project loans.
F. The interest rate on any guaranteed loan shall not exceed the average prevailing rate of interest on farm loans made by banks, financial institutions or federal agencies in the community where the loan is made.

AUTHORITY NOTE: Promulgated in accordance with R.S. 3:548, R.S. 3:549 and R.S. 3:543.

HISTORICAL NOTE: Promulgated by the Department of Agriculture, Market Commission, LR 8:270 (June 1982).