12 C.F.R. § 613.3010 Financing for processing or marketing operations.
Title 12 - Banks and Banking
(a) Eligible borrowers. A borrower is eligible for financing for a processing or marketing operation under titles I and II of the Act, only if the borrower meets the following requirements: (1) The borrower is either a bona fide farmer, rancher, or producer or harvester of aquatic products, or is a legal entity in which eligible borrowers under §613.3000(b) own more than 50 percent of the voting stock or equity; and (2) The borrower or an owner of the borrowing legal entity regularly produces some portion of the throughput used in the processing or marketing operation. (b) Portfolio restrictions for certain processing and marketing loans. Processing or marketing loans to eligible borrowers who regularly supply less than 20 percent of the throughput are subject to the following restrictions: (1) Bank limitation. The aggregate of such processing and marketing loans made by a Farm Credit bank shall not exceed 15 percent of all its outstanding retail loans at the end of the preceding fiscal year. (2) Association limitation. The aggregate of such processing and marketing loans made by all direct lender associations affiliated with the same Farm Credit bank shall not exceed 15 percent of the aggregate of their outstanding retail loans at the end of the preceding fiscal year. Each Farm Credit bank, in conjunction with all its affiliated direct lender associations, shall ensure that such processing or marketing loans are equitably allocated among its affiliated direct lender associations. (3) Calculation of outstanding retail loans. For the purposes of this paragraph, “outstanding retail loans” includes loans, loan participations, and other interests in loans that are either bought without recourse or sold with recourse.
Title 12: Banks and Banking
PART 613—ELIGIBILITY AND SCOPE OF FINANCING
Subpart A—Financing Under Titles I and II of the Farm Credit Act
§ 613.3010 Financing for processing or marketing operations.
