ROBERT L. EHRLICH, JR., Governor                          H.B. 1179

(11)    SUBJECT TO THE RIGHTS OF HOLDERS OF THE BONDS OF THE
CORPORATION, CONSENT TO ANY MODIFICATION WITH RESPECT TO THE RATE OF
INTEREST, TIME, PAYMENT OF ANY INSTALLMENT OF PRINCIPAL OR INTEREST,
SECURITY, OR ANY OTHER TERM OR CONDITION OF ANY LOAN, CONTRACT,
MORTGAGE, MORTGAGE LOAN, OR COMMITMENT OR AGREEMENT OF ANY KIND TO
WHICH THE CORPORATION IS A PARTY OR BENEFICIARY; AND

(12)    ISSUE REVENUE BONDS UNDER § 13-610 OF THIS SUBTITLE.
13-609. 13-509.

(A)     (1) THE CORPORATION MAY PURCHASE OR CONTRACT TO PURCHASE
AND SELL OR CONTRACT TO SELL AGRICULTURAL LOANS MADE BY LENDING
INSTITUTIONS, AT THE PRICES AND ON THE TERMS AND CONDITIONS THAT IT
DETERMINES.

(2) A LENDING INSTITUTION MAY PURCHASE AND SELL AGRICULTURAL
LOANS TO THE CORPORATION IN ACCORDANCE WITH THE PROVISIONS OF THIS
SECTION.

(B)     (1) THE CORPORATION MAY MAKE, OR CONTRACT TO MAKE, LOANS TO
AND DEPOSITS WITH LENDING INSTITUTIONS AT INTEREST RATES, TERMS, AND
CONDITIONS THAT IT DETERMINES.

(2)      A LENDING INSTITUTION MAY BORROW FUNDS AND ACCEPT
DEPOSITS FROM THE CORPORATION IN ACCORDANCE WITH THIS SUBTITLE AND THE
BYLAWS OF THE CORPORATION.

(3)      THE CORPORATION SHALL REQUIRE THAT ALL PROCEEDS OF ITS
LOANS TO OR DEPOSITS WITH LENDING INSTITUTIONS, OR AN EQUIVALENT
AMOUNT, SHALL BE USED BY THE LENDING INSTITUTIONS TO MAKE AGRICULTURAL
LOANS, SUBJECT TO TERMS AND CONDITIONS THAT THE CORPORATION MAY
PRESCRIBE.

(C)     THE CORPORATION MAY INSURE AND REINSURE AGRICULTURAL LOANS
MADE BY LENDING INSTITUTIONS, SUBJECT TO THE TERMS, CONDITIONS,
LIMITATIONS, COLLATERAL AND SECURITY PROVISIONS, AND RESERVE
REQUIREMENTS DETERMINED BY THE CORPORATION IN ACCORDANCE WITH THE
BYLAWS OF THE CORPORATION.

(D)     UNLESS OTHERWISE DETERMINED BY THE CORPORATION,
AGRICULTURAL LOANS SHALL BE INSURED TO THE AMOUNT OF 100% OF THE UNPAID
PRINCIPAL AND INTEREST ON EACH LOAN.

(E)     AN INSURED AGRICULTURAL LOAN IS IN DEFAULT WHEN THE HOLDER OF
THE LOAN APPLIES TO THE CORPORATION FOR PAYMENT OF INSURANCE ON THE
LOAN STATING THAT THE LOAN IS IN DEFAULT IN ACCORDANCE WITH THE TERMS
OF ANY AGREEMENT WITH RESPECT TO THE INSURANCE EXECUTED IN
ACCORDANCE WITH THIS SECTION.

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