§ 4-a. Farm drain tile revolving loan program. (1) Definitions. (a)
"Farm drain tile project." A specific work or improvement that is
undertaken by an agricultural producer for the construction or
improvement of drain tile for the purpose of enhancing farm fields.

(b) "Local loan administrator." A farm credit bureau or member of the
farm credit system or a banking institution or non-governmental
organization with a demonstrated ability to provide financial assistance
and service to agricultural rural areas, that have entered into a master
servicing agreement prescribed pursuant to subdivision two of this
section.

(2) Master servicing agreement. (a) The state soil and water
conservation committee ("committee") is hereby authorized to use the
monies held in the farm drain tile revolving loan fund to make advances
to a local loan administrator that has entered into a written master
servicing agreement prescribed by the committee pursuant to paragraph
(b) of this subdivision.

(b) The committee, in consultation with the comptroller, shall
prescribe a master servicing agreement to be executed by the committee
and local loan administrators. Such agreement shall provide that: (i)
any advances made to a local loan administrator shall be used solely for
the purpose of providing loans to agricultural producers for undertaking
farm drain tile projects; (ii) the total amount of loans made to any
single agricultural producer shall not exceed fifty thousand dollars per
annum; (iii) the term of any loan shall not exceed ten years and equal
payments of principal payable no less frequently than annually shall be
required to be made on such loan during the term such loan is
outstanding which payments will liquidate the entire principal balance
of the loan over its term; (iv) the local loan administrator is required
to pay to the committee for deposit into the farm drain tile revolving
loan fund all repayments including interest, if any, received from any
agricultural producers on account of such loan, except for that portion
permitted to be retained by the local loan administrator as a fee
pursuant to the master servicing agreement. The master servicing
agreement shall also set forth: (i) the form of any note and security
agreement to be executed by the agricultural producer in connection with
any loan; (ii) the rate of interest, if any, to be charged on any loan;
(iii) the amount of any fee to be retained by the local loan
administrator for servicing any loan; (iv) the form of application
required to be completed by an agricultural producer for any loan; (v)
the form of requisition and certification to be required from a local
loan administrator to obtain an advance of funds from the committee;
(vi) any other conditions to be imposed upon an agricultural producer as
a condition of receiving a loan; (vii) the responsibilities to be
performed by the local loan administrator in connection with reviewing,
approving and servicing the loan and the circumstances under which the
committee may terminate a master servicing agreement; (viii) conditions
necessary to insure prompt closing on loans for which funds are
advanced, including payment of interest of funds from the time advanced
until utilized; and (ix) such other requirements as the committee may
from time to time establish by rules and regulations consistent with the
purposes of this section.

(3) (a) The committee shall, subject to the availability of funds as
appropriated by the legislature, advance from the farm drain tile
revolving loan fund to a local loan administrator the amount of funds
requested in any requisition within fifteen business days after receipt
of all of the following: a completed requisition for an advance of
funds; copies of any applications and any supporting documentation to
which such requisition pertains; and a certification from the local loan
administrator with respect to such requisition in addition to any other
representation and statement required by the committee. The
certification from the local loan administrator shall state that: (i)
the loan administrator has performed its responsibilities in connection
with review and approval of applications to which such requisition
pertains, (ii) to the best of the local loan administrator's knowledge
the loans, to which the advances pertain, comply with the master
servicing agreement and the provisions of this section, and (iii) the
borrowers have demonstrated their ability to make the repayments
required under the loan. In the event that funds are not available or
the committee determines that the requisition, application or
certification is defective, it shall so notify the local loan
administrator within fifteen business days after receipt of the
requisition.

(b) The committee shall establish criteria for prioritizing loan
applications in the event that the requisitions submitted to the
committee by one or more local loan administrators exceed the amount
then available for the purposes of this section. In determining
priority, the committee shall take into account: (i) whether the farm
drain tile project to which the application pertains is the most cost
effective approach to enable the agricultural producer to construct or
improve farm drain tile on the farm; (ii) whether the agricultural
producer making application lacks the financial resources to undertake
the farm drain tile project without obtaining a loan pursuant to this
section; and (iii) such other factors as the committee deems relevant.
In applying the criteria to be utilized for prioritizing loans, the
committee shall be entitled to rely on the information contained in the
copies of the applications submitted with the requisition.

(4) Examination by comptroller. The comptroller, or his or her legally
authorized representative, is hereby authorized and empowered from time
to time to examine the books and accounts of the committee relating to
the farm drain tile fund, and from time to time, to examine the books
and accounts of any local loan administrator which has received advances
from such fund pursuant to this section, but only insofar as those books
and accounts relate to such advances and to the local loan
administrator's compliance with the master servicing agreement entered
into pursuant to this section.

(5) Establishment of fund. (a) There is hereby created and established
in the committee a revolving loan fund to be known as the "farm drain
tile revolving loan fund."

(b) There shall be paid into such farm drain tile revolving loan fund
(i) any moneys appropriated and made available by the state for the
purposes of such fund, (ii) notwithstanding the provisions of the state
finance law or any other provision of law, any moneys which the
committee shall receive in repayment of advances made from such fund,
and (iii) any other moneys which may be made available to the committee
for the purpose of such fund from any other source or sources.

(c) All moneys paid into the fund from repayments of loans authorized
by subdivision three of this section shall continue to be made available
for the purpose of providing loans pursuant to such subdivision.

(d) Any moneys held in such farm drain tile revolving loan fund not
required for immediate disbursement may be invested, at the discretion
of the committee, in obligations of the state or the United States
government or obligations the principal and interest of which are
guaranteed by the state or the United States government. Any income or
interest earned by, or increment to, such farm drain tile revolving loan
fund shall be added to the moneys held in such fund for the purposes
herein provided.

(6) Rules and regulations. The committee is empowered to promulgate
such rules and regulations and to prescribe such forms as it shall deem
necessary to effectuate the purposes of this section.