24.2005 Loan agreement.

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(a) Each loan shall be made upon the basis of a written loan agreement signed by the borrower and the matai controlling the family land if family land is involved.

(b) The loan agreement shall specify the obligations assumed by the borrower, which may include farming practices to be followed, marketing controls, and limitations on the portion of the crop produced with the loan that may be used by the borrower or the matai. The loan agreement shall also specify the rights of the director, which shall include the right to inspect and give production, harvesting, and marketing directions, and the right to take possession of the land in the event of a default in payment of the loan and to use the land through agents or lessees for the time necessary to grow and market crops with a net value equal to the unpaid balance due on the defaulted loan.

History: 1962, PL 7-24, 1965, PL 9-16