§374d. General powers

Link to law: http://legislature.vermont.gov/statutes/section/10/016A/00374d
Published: 2015

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The Vermont Statutes Online



Title

10

:
Conservation and Development






Chapter

016A

:
VERMONT AGRICULTURAL CREDIT PROGRAM











 

§

374d. General powers

The corporation

shall have the powers necessary to carry out the purposes and provisions of

this chapter, including those general powers provided a business corporation by

11A V.S.A. § 3.02. In addition, the corporation shall have the power to:

(1) execute

contracts and all other instruments necessary for the exercise of its powers

and functions under this chapter;

(2) without

limitation, acquire or dispose of real or personal property or any interest in

real or personal property;

(3) receive and

accept gifts, grants, or contributions from any source, for any purpose

consistent with this chapter;

(4) provide or

contract for consolidated processing of any aspect of the financing of eligible

borrowers in order to avoid duplication;

(5) procure

insurance against any loss;

(6) invest

monies of the corporation not required for immediate use;

(7) borrow money

and issue notes and other evidences of indebtedness for lending and

administrative and other expenses. The corporation may sell, transfer, pledge,

mortgage, hypothecate or otherwise dispose of loans under its management.

Neither the full faith and credit of the state of Vermont nor any of the assets

of the authority are pledged to secure repayment of the indebtedness of the

corporation;

(8) consent to

any modification with respect to rate of interest, time and payment of any

contract or agreement of any kind to which the corporation is a party;

(9) procure or

agree to the procurement of insurance, guarantees or interest rate subsidy assistance

on any notes or any other evidence of indebtedness issued to the corporation;

(10) make loans

or advances secured by a mortgage or a security agreement, which may be

subordinate to one or more prior mortgages or security agreements, to eligible

borrowers under such terms and conditions as the corporation deems prudent and

consistent with the purposes of this chapter and for such fees, and at such

rate or rates of interest, as determined by the corporation, provided that the

interest rate or rates charged by the corporation shall not exceed the rate

paid or to be paid by the corporation for monies borrowed by the corporation to

fund loans plus 300 basis points;

(11) take title,

by foreclosure or other process available under the law, to any real or personal

property where such action is necessary to protect any loan previously made by

the corporation, pay all costs arising out of the legal action and acquisition

from monies held in the fund, and sell or transfer any such property to any

responsible buyer. If the transfer or conveyance of assets acquired under this

subdivision cannot be effected with reasonable promptness, the corporation may,

in order to minimize financial losses and sustain a farm operation or

agricultural facility, lease the assets owned by it to responsible persons on

such terms and conditions as the corporation deems reasonable;

(12) purchase

prior mortgages and make payments on prior mortgages or security interests on

any assets pledged as security for loans of the corporation where the purchase

or payment is necessary to protect any loan previously made by the corporation.

In addition, the corporation may sell, transfer, and assign a prior mortgage or

prior security interest. Monies used by the corporation for the purchase of any

prior mortgages, or any payments on prior mortgages, shall be withdrawn from

the fund established pursuant to section 374e of this title, and any monies

derived from the sale of any prior mortgages shall be deposited in the fund;

(13) employ or

contract for services with agents, consultants, legal advisors and other

experts, as may be necessary for its purposes;

(14) participate

in eligible and qualified loan projects with lenders, including the farm credit

system, banks and insurance companies;

(15) execute lease

agreements for the purpose of leasing personal property under financing leases,

which leases transfer the ownership of the leased personal property to each

lessee following the payment of all required lease payments as specified in

each lease agreement;

(16) sell loans,

or portions thereof, in order to provide further funding for lending under this

chapter. Proceeds from sales of loans shall be deposited in the agricultural

credit development fund established under section 374e of this title;

(17) establish

policies and procedures consistent with the purpose of providing sound and

constructive credit to eligible loan applicants; and

(18) do all

things necessary to carry out the purposes and provisions of this chapter.

(Added 1999, No. 25, § 1; amended 2003, No. 7, § 6, eff. April 25, 2003.)
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