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Farm Real Estate Loan Guarantee Program
This program is designed to assist farmers with the purchase or the restructuring
of agricultural real estate loans by providing a financial institution
with a 75% guarantee of total loans that do not exceed $400,000 to an individual
borrower.
Loan Requirements
Lead Lender - Any bank, credit union, or lending association that is a part of the
farm credit system, and savings and loan association in the state of North
Dakota. The lead lender will be responsible for submitting a Farm Real Estate Loan Guarantee Lender Payment History Form to BND, annually.
Borrower - A North Dakota resident at least eighteen (18) years old.
Guarantee - Bank of North Dakota may guarantee up to 75% of the amount of principal
due the lender. The total of agricultural real estate loans to be guaranteed
may not exceed $400,000 to an individual borrower. The Bank may approve
a guarantee on a loan up to 80% of the certified appraised value of the
agricultural real estate.
Term - The guarantee term may not exceed 5 years.
Guarantee Fee - .5% per year or a one time fee of 1.5% of the guaranteed portion. The guarantee fee may be included in the loan or in the rate
charged by the lender.
Application by a lead lender is required to apply for BND's guarantee. See application
for additional documentation required when submitting a request to BND.
Lead lender is responsible for servicing the loan.
Interest Rate - The maximum amount the lender may charge may not exceed 3% above BND
base rate. The guarantee fee may be included in the loan or in the rate
charged by the lender.
Other Features - This program can be used in conjunction with other BND loan programs.
The Bank may have no more than $8,000,000 in outstanding loan guarantees
under the farm real estate loan guarantee program.
For more information about this program or other Bank of North Dakota programs,
contact:
Bank of North Dakota
1200 Memorial Hwy
PO Box 5509
Bismarck, ND 58506-5509
(701) 328-5672
1-800-472-2166 ext. 5672
TDD (Telephone Device for the Deaf) 1-800-643-3916
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