NOLAND-WOOLARD-TURNER,JOHN-BRUNSVOLD-LAWFER AND BLACK.
ILL FARM DEVELOP-ST GUARANTEES
Synopsis of Bill as introduced:
Amends the Illinois Farm Development Act. Provides that the
Illinois Farm Development Authority shall not have outstanding State
Guarantees in an aggregate principal amount exceeding $50,000,000 (now
$35,000,000). Provides that there shall be no income restriction for
applicants who have previously used the guarantee program. Provides
that guarantees shall not exceed $500,000 (now $300,000) per farmer.
Provides that in those cases where the borrower has not previously
used the guarantee program, the lender shall not call the loan due
during the first 3 years for any reason except lack of performance or
insufficient collateral. Provides that interest earned from amounts
invested from the Illinois Agricultural Loan Guarantee Fund and the
Illinois Farmer and Agribusiness Loan Guarantee Fund shall be
deposited into those funds until the Funds reach their maximum
amounts. Provides that after the Funds reach their maximum amounts
the interest shall be deposited into the General Revenue Fund.
Provides that the Authority may transfer $15,000,000 (now $10,000,000)
from appropriations and the Farm Emergency Assistance Fund as of June
30 of each year to the Illinois Farmer and Agribusiness Loan Guarantee
Fund. Makes other changes. Effective immediately.
FISCAL NOTE (Bureau of the Budget)
FY98 costs would be approximately $400 thousand in lost inter-
est. HB1880 could cost an additional $5 million over time if a
sufficient number of loans default.
Last action on Bill: PUBLIC ACT.............................. 90-0325
Last action date: 97-08-08
Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 0 SENATE - 0
END OF INQUIRY
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