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Last modified
8/16/2009 2:54:55 PM
Creation date
10/4/2006 6:45:22 AM
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Board Meetings
Board Meeting Date
5/19/2003
Description
CF Section - Policy Review Policy #7 - Annual Construction Fund and Severance Tax Trust Fund Perpetual Base Account Loan Lending Rate Determination
Board Meetings - Doc Type
Memo
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<br />-3- <br /> <br />. A completely different way to look at applications from the for-profit agricultural entities <br />would be to utilize the language in Policy #7 - paragraph 7 and determine a weighted average <br />lending rate based on the percentage of the entity's income generated from agriculture and from <br />other for-profit endeavors. This would require more in-depth analysis of financial statements and <br />income tax returns from the individual or small corporate borrowers, It does however eliminate the <br />difficulty in determining whether a specific loan applicant should be eligible for the non-profit or <br />for-profit lending rate. <br /> <br />Recommendation <br /> <br />The Board maintains the sole discretion to set whatever lending rate they feel is appropriate <br />for any particular loan application. These suggested policy revisions would simply give the Board a <br />basis for a higher interest rate in those cases where the borrower does not meet all the criteria for <br />which the low agricultural interest rate was intended, Staff recommends the Board direct the staff to <br />prepare a policy revision, if necessary, based on the May Board meeting discussions and present it at <br />the July Board meeting. <br /> <br />. <br /> <br />. <br /> <br />Flood Protection. Water Project Planning and Financing. Stream and Lake Protection <br />Water Supply Protection. Conservation Planning <br />
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