PURPOSE: This rule is to comply with section 536.023, RSMo 1986 which requires each agency to adopt as a rule a description of its operation and the methods by which the public may obtain information or make submissions or requests.

1. (1) The Missouri Agricultural and Small Business Development Authority is authorized to purchase agricultural development loans, small business development loans and small business pollution control facilities originated by lenders or it may participate with lenders in making those loans and may enter into commitments with lenders for purchase or participation.
2. (2) The authority will become successor in interest to certain Conservation Reserve Program (CRP) contract(s) or participating borrowers and will provide for the participating borrowers’ duties and responsibilities in those contracts under the terms and conditions of a memorandum of understanding dated July 3, 1989 between the authority and the Commodity Credit Corporation of the United States Department of Agriculture. The authority will succeed to the participating borrower’s interest in the CRP contracts by virtue of a successor-in-interest agreement(s) with each participating borrower and the authority will receive one hundred percent (100%) of the CRP contract payments to be received by each participating borrower under the contracts.
3. (3) The authority will authorize the issuance of agricultural development revenue bonds to fund the purchase of participation in agricultural development loans to participating borrowers originated by participating lenders; sell bonds to participating lenders as original purchasers of the bonds to fund the agricultural development loans and to provide for certain issuance expenses; assign the authority’s rights in an amount equal to ninety-six percent (96%) of the CRP contract payments to the participating lenders as original purchasers of the bonds to amortize the agricultural development loans; and retain a sum equal to four percent (4%) of the CRP contract payments to provide a fund for actions necessary to meet United States Department of Agriculture compliance requirements for the Conservation Reserve Enhancement Program (the program) and to provide for necessary administrative costs in connection with the program.
4. (4) In consideration of the agricultural development loan, each participating borrower will place certain restrictive covenants on the CRP land which, among other things, will require that the CRP land be kept by the participating borrower as CRP contract acreage in compliance with the CRP contract and will grant to the authority a right of entry upon the farm and the CRP land to permit, among other things, the authority to take any steps necessary to ensure compliance. These restrictive covenants and the right of entry will be contained in a Land Use Agreement which will require the approval of each current lienholder and will be recorded.

AUTHORITY: section 536.023, RSMo 1986.* Original rule filed Aug. 15, 1989, effective Oct. 27, 1989. *Original authority: 536.023, RSMo 1975, amended 1976, 1997.