CERTIFICATIONS OF APPLICANT
I understand and agree that:
1. The Authority’s Loan Participation will mature in:
● Seven years or less if purchasing livestock or machinery
● Ten years, if constructing a livestock facility, the loan will be amortized for a maximum of 12 years or if purchasing land, the loan will be amortized for a
maximum of 20 years. However, if you are also utilizing an FSA Loan program the participation can be amortized to comply with FSA rules.
2. I have the option of paying this loan ahead of schedule and can pay it off at any time without any prepayment penalties.
3. If I move out of Iowa and/or quit farming, I will not be permitted to rent out my operation and/or the collateral for this loan and will be required to pay off
this Loan Participation in full at that time.
4. The interest rate on the participated loan will be a fixed rate set by the Authority board of directors.
5. The collateral and performance of this Participation Loan will be reviewed annually by Lender and I may have to pledge additional collateral in the future
if the value of the collateral becomes insufficient to adequately secure the Participated Loan.
6. The closing fee for this loan is 1.50% of the amount participated with the Authority. A minimum loan closing fee of $300 will be charged.
7. I am liable to pay all the appraisal fees which may be incurred while valuing the collateral for the Participated Loan and any legal or abstracting costs that
may be incurred.
8. The Authority and my lender will have the final approval of this loan request and submitting this application does not insure me that my Loan Participation
application will be approved.
9. I will annually provide to lender copies of current financial statements which may be requested by the Authority.
I hereby certify that:
1. I am a resident of the State of Iowa.
2. I am the principal operator of a farming operation.
3. I have sufficient education, training or experience in the type of farming for which this loan is requested.
Complete the form describing the education, training or experience of you and your spouse as it relates to farming.
4. My net worth does not exceed the maximum (before closing).
5. All of my debts will be current at the time the participation loan is closed.
6. If this loan is for machinery or livestock purchase, the collateral I am pledging for this Participation Loan has an appraised fair market value at least equal
to the Loan amount(s).
7. If this loan is for real estate purchase or improvements, the collateral I am pledging for this Participation Loan has an appraised fair market value so that
the Loan amount(s) requested does not exceed 100 percent of the real estate collateral.
8. If other loans have been previously issued to me under this program, the outstanding Participation totals will not exceed $200,000.
9. This loan application is for new agricultural purchases and will not be used for refinancing.
10. I have read the “Program Summary” for the IADD Loan Participation Program. I understand all the terms of the program and I agree to adhere to all of
the rules and regulations required of me to secure and keep intact an IADD Loan Participation. I further certify that all information on the application,
including the financial statements that are attached for me and my spouse, is true and correct.
Date Signature of Beginning Farmer
Signature of Beginning Farmer’s Spouse
CERTIFICATIONS OF THE LENDER
I have completed the lender’s analysis, lender’s financial document reconciliation, current financial statement, pro-forma financial statement and cash flow to
the best of my ability and hereby certify that all the information contained in the above is true and correct.
I understand and agree that:
1. I must bring the applicant’s debts to a current status at the time the Loan Participation loan is closed.
2. I must pay the Authority a proportion of each principal and interest payment received in the proportion equal to the original Participation Loan purchased
by the Authority.
3. I will assume all responsibility for servicing this loan according to the Loan Participation Certificate and Agreement.
a. The Authority shall have final approval on the sale of all collateral on Participation Loans.
4. The closing fee for this loan is 1.50% of the amount participated with the Authority. A minimum loan closing fee of $300 will be charged.
5. Loans made pursuant to the provisions of this program may be subject to review by the Iowa Division of Banking for the purpose of determining that the
underwriting requirements of the program have been complied with by the lender.
I hereby certify that:
1. I have read the “Program Summary” for the IADD Loan Participation Program” and both the applicant and my lending institution meet and understand all
of the eligibility requirements.
2. Applicant is a “low-income” farmer who cannot obtain financing to purchase agricultural property without the assistance of a loan participation with IFA.
3. No other private or state credit is available or can be obtained in a timely manner.
Date Lending Institution
Signature of Official of Lending Institution
Print or Type Official’s Name & Title