Current through Register Vol. 54, No. 12, March 23, 2024
(a)
Options. Payment for an agricultural conservation easement may
be made in a lump sum, in installments or in another lawful manner of
payment.
(b)
Installment
sales with a payment period of 5 years or less. Installment sales in
which the final payment for the easement purchase is to be made no longer than
5 years from the date the contract of sale is fully executed are subject to the
following requirements:
(1) Purchases may be
made in the name of the Commonwealth, an eligible county or jointly by the
Commonwealth and an eligible county.
(2) The Department will provide the agreement
of sale for purchases made in the name of the Commonwealth solely or jointly by
the Commonwealth and an eligible county.
(3) The installment payment terms, including
the dates of payments, payment amounts and interest rate on the outstanding
balance shall be negotiated between the landowner and the county
board.
(4) The interest rate to be
paid on the outstanding balance, shall be established by the county board, and
shall be stated in the agreement of sale.
(c)
Installment sales with a payment
period of more than 5 years. Installment sales, other than those
installment sales described in subsection (d), in which the final payment for
the easement purchase is to be made more than 5 years from the date the
contract of sale is fully executed are subject to the following provisions:
(1) Purchases may be made in the name of the
Commonwealth, an eligible county or jointly by the Commonwealth and an eligible
county.
(2) Notwithstanding the
requirement of §
138e.66(d)
(relating to offer of purchase by county board), the county board may, subject
to approval by the Department, provide the agreement of sale for purchases made
under this subsection.
(3) The
agreement of sale and the deed of easement shall meet the same requirements and
be subject to the same conditions as set forth in §
138e.66(c) and
§
138e.67 (relating to requirements
of the agricultural conservation easement deed).
(4) The installment payment terms, including
the dates of payments, payment amounts and interest rate on the outstanding
balance shall be negotiated between the landowner and the county
board.
(5) The interest rate paid
on the outstanding balance will be established by the county board and shall be
stated in the agreement of sale.
(6) The State's share of the easement
purchase price, exclusive of interest, shall be transferred to the county board
for deposit into an irrevocable escrow account or deposit in another manner
provided by law.
(7) Transfer of
the Commonwealth's share of the easement purchase price, exclusive of interest,
according to the terms of this paragraph shall relieve the Commonwealth of any
obligation to pay or assure the payment of the easement purchase price and
interest.
(d)
Installment sales deferring the payment of principal for up to 30
years. Installment sales in which payment of principal is deferred to
the end of a specific period of up to 30 years from the date the contract of
sale is fully executed are subject to the following provisions:
(1) Purchases may be made in the name of the
Commonwealth, an eligible county or jointly by the Commonwealth and an eligible
county.
(2) Notwithstanding the
requirement of §
138e.66(d), the
county board may, subject to approval by the Department, provide the agreement
of sale for purchases made under this subsection.
(3) The agreement of sale and the deed of
easement shall meet the same requirements and be subject to the same conditions
as set forth in §
§ 138e.66(c) and 138e.67.
(4) The installment payment terms shall be
negotiated between the landowner and the county board. These terms shall
include the amount of cash (if any) to be received at closing, the interest
rate, the period over which interest is to be paid and the point at which
principal is to be paid.
(5) The
landowner is responsible for the transaction costs associated with the type of
purchase described in this subsection unless the county program provides
otherwise.