Louisiana Administrative Code
Title 7 - AGRICULTURE AND ANIMALS
Part III - Agricultural Finance
Chapter 1 - General Provisions
Section III-109 - Projects Ineligible for Loans Funded with LAFA Bond Proceeds; Exceptions
Universal Citation: LA Admin Code III-109
Current through Register Vol. 50, No. 9, September 20, 2024
A. LAFA bonds may not be used for the following purposes, except as provided under this rule:
1. land acquisition, except that:
a. 25 percent of a loan may be used to
acquire non-farm land; and
b.
first-time farmers may utilize a maximum of $250,000 in loan proceeds to
purchase land to be used for farming; if
i.
the borrower meets the definition of first-time farmers
contained in §101;
ii. the borrower
will be the principal user (as defined in §101) of the land;
and
iii. the borrower will
materially and substantially participate in the operation of the farm of which
the land is a part;
2. acquisition of existing agribusiness
facilities (used buildings or equipment), except that, the restriction against
use of loan proceeds to purchase existing facilities does not apply to any
building, and the equipment therein if at least 15 percent of the cost of
acquiring the building and equipment are used for rehabilitation
expenditures;
3. working
capital;
4. production
expenses;
5. refinancing of
existing indebtedness;
6. financing
of residential housing;
7. purchase
of any property from any related person (as defined in
§101 of these regulations); or
8. purchase of property from a partner of the
borrower, when the borrower is a partnership, regardless of the degree of the
partner's interest in the borrower.
AUTHORITY NOTE: Promulgated in accordance with R.S. 3:266, R.S. 3:270 and Section 103(b)(6) of the Internal Revenue Code of 1954, as amended.
Disclaimer: These regulations may not be the most recent version. Louisiana may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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