N.Y. Public Authorities Law § 1285-r: State beginning farmer program

§ 1285-r. State beginning farmer program. 1. Notwithstanding the

provisions of any general or special law to the contrary, the

corporation shall undertake to provide financial assistance to beginning

farmers to purchase agricultural land, improvements and other

agricultural property at or for any agricultural facility as set forth

in this section.

2. For purposes of this section, and notwithstanding any provision of

law to the contrary, as used in this section:

(a) "Agricultural facility" shall mean a facility used for the

production for sale of crops, livestock and livestock products as those

terms are defined in subdivision two of section three hundred one of the

agriculture and markets law.

(b) "Beginning farmer" shall mean a person who engages in farming or

desires to engage in farming and who qualifies as a first time farmer

pursuant to 26 United States code section 147(c)(2).

(c) "Lender" shall mean any state or federally-chartered savings bank,

savings and loan association, state or federally chartered savings banks

and savings and loan associations, farm credit system institution, or

state or federally chartered commercial banks or trust companies

authorized to do business in this state.

(d) "Project" shall mean the purchase of agricultural land,

improvements and other agricultural property at or for any agricultural

facility to be owned and operated by a beginning farmer.

3. The corporation is hereby authorized to enter into any contract,

financing or loan agreement, or other instrument in connection with a

loan made by a lender to a beginning farmer for a project.

4. In order to effectuate the purposes of this section, the

corporation may extend credit to or on behalf of a beginning farmer for

the construction or acquisition of a project, or for the reimbursement

for costs incurred by a beginning farmer in connection with a project,

provided such beginning farmer has received a commitment to receive from

a lender a loan or other financial assistance acceptable to the

corporation. In the exercise of the powers granted in this section in

connection with a project for a beginning farmer, the corporation may

require the inclusion in any contract, loan agreement or other

instrument of such provisions for the financing of such project and such

other financial and other covenants as may apply to such beginning

farmers as the corporation may deem desirable and/or appropriate and to

do all things necessary to execute any instrument in connection and

desirable with such financing.

5. In connection with the issuance of any bond or note issued in

connection with or for the beginning farmer program, the corporation may

fix and collect any fees and charges, including but not limited to

reimbursement of all costs of financing incurred by the corporation, as

the corporation shall determine to be reasonable.

6. In connection with the extension of credit and the issuance of a

bond or note for the construction or acquisition of a project as

provided in this section, a beginning farmer shall submit to the

corporation an application for the extension of credit or a loan. The

corporation may deny such application for any reason it deems

appropriate in the public interest.

7. Any bonds or notes issued to finance the provisions of this section

shall be special limited obligations of the corporation payable solely

out of the revenue derived from any loan or finance agreement, debt

obligation or sales contract, collateral or other property received in

connection with the beginning farmer program. All assets and liabilities

created through the issuance of bonds or notes under this section shall

be separate from all other assets and liabilities of the corporation.

The corporation shall have no moral or legal obligation or liability to

any beginning farmer or other person under this section except as

expressly provided by written contract. No funds in the beginning farmer

program may be commingled with any other funds of the corporation.

8. (a) The corporation shall promulgate regulations, developed in

consultation with the commissioner of agriculture and markets, for the

purpose of carrying out its responsibilities under this section,

including establishing the criteria and standards for evaluating the

project to be financed and the eligibility of the beginning farmer.

(b) The corporation shall consult with the commissioner of agriculture

and markets regarding promotion of the program and agriculturally

related questions regarding the program or applications.