HOUSE BILL No. 2055
An Act concerning agriculture; relating to agricultural production
loan deposit agreements;
interest rate; amending K.S.A. 2002 Supp. 75-4272 and
repealing the existing section.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 2002 Supp.
75-4272 is hereby amended to read as
follows: 75-4272. (a) The state treasurer may accept or reject an
tural production loan deposit loan package based on the state
evaluation of whether the loan to the eligible agricultural
the purposes of this act. If sufficient funds are not available for
cultural production loan deposit, then the applications may be
in the order received when funds are once again available subject
review by the lending institution.
(b) Upon acceptance, the state treasurer
shall certify to the director
of investments the amount required for such agricultural production
deposit loan package and the director of investments shall place an
ricultural production loan deposit in the amount certified by the
treasurer with the eligible lending institution at an interest
rate, which is
2% below the market rate provided in K.S.A. 75-4237, and
thereto, and which shall be recalculated on the first business day
uary and July of each year using the market rate then in effect.
necessary, the state treasurer may request the director of
place such agricultural production loan deposit prior to acceptance
agricultural production loan deposit loan package.
(c) The eligible lending institution
shall enter into an agricultural pro-
duction loan deposit agreement with the state treasurer, which
clude requirements necessary to implement the purposes of the
agricultural production loan deposit program. Such requirements
include an agreement by the eligible lending institution to lend an
equal to the agricultural production loan deposit to eligible
borrowers at an interest rate which is not more than
above the market
rate as determined under K.S.A. 75-4237, and amendments
which 4% greater than the interest rate on
agricultural production loan
deposits as provided in subsection (b), except that for
duction loans made commencing on the effective date of this act
ing June 30, 2003, such interest rate shall be 4%. Such rate
shall be re-
calculated on the first business day of January and July of each
the market rate then in effect. The agreement shall include
for the agricultural production loan deposit to be placed for a
considered appropriate in coordination with the underlying
production loan. The agreement shall include provisions for the
of the agricultural production loan deposit in an amount equal to
payment of loan principal by the eligible agricultural
Sec. 2. K.S.A. 2002 Supp. 75-4272
is hereby repealed.
Sec. 3. This act shall take effect
and be in force from and after its
publication in the Kansas register.
Approved April 3, 2003.
Published in the Kansas Register April 17, 2003.