Session Law

Identifying Information:L. 2003 ch. 031
Other Identifying Information:2003 House Bill 2055
Tax Type:Other
Brief Description:An Act concerning agriculture; relating to agricultural production loan deposit agreements; interest rate; amending K.S.A. 2002 Supp. 75-4272 and repealing the existing section.
Keywords:


Body:

CHAPTER 31

HOUSE BILL No. 2055


An Act concerning agriculture; relating to agricultural production loan deposit agreements;

interest rate; amending K.S.A. 2002 Supp. 75-4272 and repealing the existing section.

Be it enacted by the Legislature of the State of Kansas:

Section 1. K.S.A. 2002 Supp. 75-4272 is hereby amended to read as

follows: 75-4272. (a) The state treasurer may accept or reject an agricul-

tural production loan deposit loan package based on the state treasurer's

evaluation of whether the loan to the eligible agricultural borrower meets

the purposes of this act. If sufficient funds are not available for an agri-

cultural production loan deposit, then the applications may be considered

in the order received when funds are once again available subject to a

review by the lending institution.

(b) Upon acceptance, the state treasurer shall certify to the director

of investments the amount required for such agricultural production loan

deposit loan package and the director of investments shall place an ag-

ricultural production loan deposit in the amount certified by the state

treasurer with the eligible lending institution at an interest rate, which is

2% below the market rate provided in K.S.A. 75-4237, and amendments

thereto, and which shall be recalculated on the first business day of Jan-

uary and July of each year using the market rate then in effect. When

necessary, the state treasurer may request the director of investments to

place such agricultural production loan deposit prior to acceptance of an

agricultural production loan deposit loan package.

(c) The eligible lending institution shall enter into an agricultural pro-

duction loan deposit agreement with the state treasurer, which shall in-

clude requirements necessary to implement the purposes of the Kansas

agricultural production loan deposit program. Such requirements shall

include an agreement by the eligible lending institution to lend an amount

equal to the agricultural production loan deposit to eligible agricultural

borrowers at an interest rate which is not more than 2% above the market

rate as determined under K.S.A. 75-4237, and amendments thereto, and

which 4% greater than the interest rate on agricultural production loan

deposits as provided in subsection (b), except that for agricultural pro-

duction loans made commencing on the effective date of this act and end-

ing June 30, 2003, such interest rate shall be 4%. Such rate shall be re-

calculated on the first business day of January and July of each year using

the market rate then in effect. The agreement shall include provisions

for the agricultural production loan deposit to be placed for a maturity

considered appropriate in coordination with the underlying agricultural

production loan. The agreement shall include provisions for the reduction

of the agricultural production loan deposit in an amount equal to any

payment of loan principal by the eligible agricultural borrower.

Sec. 2. K.S.A. 2002 Supp. 75-4272 is hereby repealed.

Sec. 3. This act shall take effect and be in force from and after its

publication in the Kansas register.

Approved April 3, 2002.

Published in the Kansas Register April 17, 2002.


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Date Composed: 10/29/2003 Date Modified: 10/29/2003