(a) (1) The Department may make direct loans not exceeding $15,000 to
qualifying farmers at an interest rate which will make the program
self-supporting. In establishing the interest rate from time to time,
the Department shall take into account all of the expenses of the
program including administrative expenses of the program, and possible
losses. The interest rate may not exceed 1 percent above the cost of
the loans to the State.
(2) The Department may collect a uniform application fee, and retain from
it any amounts not expended for credit reports, appraisals, and other
expenses of processing loan applications.
(3) Loans made under this subtitle shall be secured by a mortgage or lien
on the property purchased and any improvements and fixtures, crops, and
livestock on it, or whatever the Secretary of Agriculture may require.
(b) (1) To be eligible for a loan, an applicant shall meet all of the following
conditions of eligibility:
(i) The Governor shall have declared a state of emergency because of a
natural disaster making the applicant's farm eligible for aid;
(ii) The applicant must have been the one to have suffered the actual loss
as a result of the natural disaster;
(iii) The applicant shall have applied for a farm loan from any agency of the
federal government; and
(iv) The applicant must make application for a farmer disaster loan within
six months of the time of the natural disaster.
(2) The conditions of eligibility listed in this section apply jointly and
severally in the case of spouses who are living together, except that
the domicile requirement may be satisfied by either spouse.
(3) If a person receives a farm disaster loan from any agency of the
federal government, that person shall reimburse the Department of
Agriculture of Maryland for any loan made according to this subtitle,
including any expense and interest as provided in subsection (a)(1) of
this section.
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