South Carolina General Assembly
107th Session, 1987-1988

Bill 3838


                    Current Status

Bill Number:               3838
Ratification Number:       717
Act Number                 618
Introducing Body:          House
Subject:                   "Beneficiary Class" defined - loans
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(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(A618, R717, H3838)

AN ACT TO AMEND SECTION 46-47-70, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO POWERS OF THE FAMILY FARM DEVELOPMENT AUTHORITY, SO AS TO DELETE THE POWER TO PARTICIPATE IN PROGRAMS WITH FEDERAL, STATE, AND NONPROFIT ENTITIES WHICH MAY MAKE LOANS TO FARMERS OF THE BENEFICIARY CLASS; AND TO AMEND THE 1976 CODE BY ADDING SECTION 46-3-145 SO AS TO EMPOWER THE DEPARTMENT OF AGRICULTURE TO PARTICIPATE IN PROGRAMS WITH FEDERAL, STATE, AND NONPROFIT ENTITIES WHICH MAY MAKE LOANS TO FARMERS OF THE BENEFICIARY CLASS.

Be it enacted by the General Assembly of the State of South Carolina:

"Beneficiary class" defined - loans

SECTION 1. The 1976 Code is amended by adding:

"Section 46-3-145. (A) As used in this section:

(1) 'Beneficiary class' means:

(a) farmers and farm families of low and moderate income;

(b) residents of the State who produce evidence satisfactory to the authority that they intend to become residents and begin farming within the State;

(c) farmers who shall use the agricultural land, agricultural improvements, or depreciable agricultural property proposed to be purchased for farming within the State;

(d) farmers who shall apply the proceeds of each mortgage loan to the acquisition by the farmer of agricultural land or agricultural improvements thereon, or depreciable agricultural property totaling no more than six hundred twenty-five thousand dollars in fair market value;

(e) farmers who demonstrate to the authority's satisfaction that they can repay the loan from farming operations within the State;

(f) farmers who are creditworthy according to standards prescribed by the authority;

(g) farmers who, inclusive of amounts estimated to be received as a result of the acquisition of the agricultural land, agricultural improvements, or depreciable agricultural property to be financed with each mortgage loan or secured loan, receive at least sixty percent of the combined gross incomes of the farmer, his spouse, and dependents from farming operations within the State;

(h) farmers who have not received previously a mortgage loan or secured loan from an entity authorized to make loans under the provisions of this section. This restriction does not apply if the amount of the loan previously received for the property plus the amount of the loan sought does not exceed six hundred twenty-five thousand dollars for agricultural land or agricultural improvements or depreciable agricultural property;

(i) farmers who satisfy other criteria the department prescribes by regulation.

(B) The Department of Agriculture may participate in and cooperate with the programs of the Farmers Home Administration, the Federal Land Banks or its successors, and any other agency or instrumentality of the United States and sponsor or participate in programs with other entities, including nonprofit corporations which may make loans to farmers of the beneficiary class, and participate in and cooperate with a program of another agency of the State or a political subdivision in the administration of any of the programs authorized to make loans to farmers of the beneficiary class."

Repeal

SECTION 2. Section 46-47-70(29) of the 1976 Code is repealed.

Time effective

SECTION 3. This act takes effect upon approval by the Governor.