The Current “Use
(Maine Rural Rehabilitation Assets)
KNOW ALL MEN BY THESE
The parties to this agreement
are the United States of America acting through the Farmers Home Administration,
hereinafter called the “Government,” and the State of Maine, acting through
it’s Commissioner of Agriculture, hereinafter called the “State.”
WHEREAS, from November
24, 1936, until during the fiscal year ending June 30, 1971, the Government
administered certain assets successively for the Farm Rehabilitation Corporation
of Maine and the State, in accordance with (a) the terms of transfer, trust, and
liquidation agreements, and (b) the authority contained in the Rural
Rehabilitation Corporation Trust Liquidation Act after it became effective on
May 3, 1950, (64 Stat. 98; 40 U.S.C. 440, et seq. 1964 ed.); and
WHEREAS, the present
Liquidation Agreement became effective on February 1, 1970, and was amended by
the Maine Educational and Training Fund Agreement which became effective on May
1, 1971; and
WHEREAS, all of the
assets that were administered in trust by the Government under said liquidation
and other agreements, have been returned to the State for administration by it,
but said Liquidation Agreement, as amended, is still in effect with respect to
administration of the assets by the State;
NOW, THEREFORE, the
parties hereto covenant and agree as follows:
For brevity and clarification, it is agreed that:
term “assets” as used herein includes the basic rural rehabilitation assets
and the income, proceeds, and acquisitions therefrom.
term “farmers” as used herein means individual farmers or ranchers who are
the operators of farms or ranches in, and who reside in, the aforesaid State,
and who meet the eligibility requirements in paragraph II A hereof.
Farm. The term
“farm” as used herein includes “ranch”.
Licensed Agricultural Fair.
The term “licensed agricultural fair” as used herein means an
agricultural club, society, county or fair association that has applied for and
received a license from the Commissioner of Agriculture in accordance with Maine
law and whose license will not expire within the period of this project.
The farmers or other parties to whom assets are loaned or granted by the
State or any agent thereof for purposes authorized herein must meet the
Direct Assistance. Farmers
or members of their families or other parties to whom loans or grants are made
for purposes authorized herein must be unable to provide the financing needed
for such purposes from their own resources or to obtain it from conventional
sources in the area at rates and terms they can reasonably be expected to meet.
Indirect Assistance. If
any loans or grants are made to a cooperative, club, corporation, or other
entity to indirectly provide assistance to such farmers or member of their
families or other parties for purposes authorized herein, such entity must
likewise be unable to provide the needed financing from its own resources or to
obtain such financing from conventional sources in the area at rates and terms
the entity can reasonably be expected to meet.
PROGRAM USES OF ASSETS.
The assets may be used by the State for any one or more of the following
rural rehabilitation program purposes:
Loans. To make
or participate in making or to acquire loans; or to underwrite, insure, or
guarantee, in whole or in part, the payment of loans or losses made by other
lenders; or to make loans the payment of which or losses on which is
underwritten, insured, or guaranteed in whole or in part by the Government or
other parties; provided:
Real Estate Loans. The
loans are made to individual farmers for acquisition, enlargement, development,
or improvement of, or for soil and water development or nonfarm recreational
enterprises on, farms to be operated by them, or for refinancing their farm real
Farm Operating Loans. The loans are made to individual farmers for acquisition of
livestock, poultry, and other farm animals, farm machinery and equipment, milk
base, feed, seed, fertilizer, insecticide and other farm supplies, or for
payment of cash rent, refinancing of farm operating debts, or payment of farm
and home expenses in connection with their farming operations.
Youth Loans. The
loans are made to members of the Future Farmers of America, Future Homemakers
of America, 4-H
Clubs, and similar organizations to carry out agriculturally oriented projects
sponsored and supervised by such organizations.
Educational Loans. The
loans are made to individual farmers or members of their families or to farm
laborers to assist them in obtaining on-the-job training, participating in
intern or educational training programs, or attending vocational schools or
colleges or universities to further their education, or to become qualified for
or to improve their skills in farm service or other employment.
5. Agricultural Fair Loans.
The loans are made to a licensed agricultural fair
for capital improvements on fair grounds.
To make grants:
Youth and Educational Grants.
To parties who meet the eligibility requirements for loans
authorized in, and for the program purposes authorized in, paragraphs III
A 3 and 4 hereof.
Leadership Training Grants. To the Dirigo Foundation, Inc., or other
organizations, for use for the following purposes:
To pay the cost of farm boys and girls attending conferences held
by the Future Farmers of America, Future Homemakers of America, 4-H
Clubs, and similar organizations to assist such boys and girls in
developing leadership and citizenship qualities and improving such
organizations for the overall purpose of better serving farm families.
Youth Orientation Programs. To pay the cost of programs to stimulate interest to
farm boys and girls in vocational agriculture, and to enable them to attend
meetings and take part in tours involving vocational agriculture programs and
To pay the cost of participation of farms boys and girls in
judging dairy products, livestock, livestock showmanship, and similar
C. Reserve Fund.
To purchase certificates of beneficial ownership in loans insured by the
Government only if and only to the extent that they will constitute a reserve
fund required as a basis for the State engaging in a program of underwriting,
insuring, or guaranteeing the payment in whole or in part of loans or losses on
loans made by banks or other lenders for purposes agreed upon herein.
D. Other Rural Rehabilitation Purposes.
To accomplish such other rural rehabilitation purposes permissible under
the chapter of the former Farm Rehabilitation Corporation of Maine as may from
time to time be agreed upon between the State and the Government.
IV COSTS OF ADMINSTRATION AND PROTECTION OF ASSETS.
Such portion of the assets as necessary (except as limited below) may be
used by the State:
Costs of Administration.
To defray costs of administration of the assets, for which purpose the
State may expend such sums as are reasonably necessary from such assets, but not
to exceed three percent of the book value thereof during any fiscal year without
the prior written approval of the Government.
Protection of the Assets.
To pay taxes and other non-administrative costs for protection of the
V TEMPORARY INVESTMENTS. If some of the assets cannot be used continuously for
agreed upon rural rehabilitation program purposes they may be invested by the
Corporation (State) for temporary periods (pending opportunities for use for
agreed upon rural rehabilitation program purposes) in U.S. Treasury bills,
savings accounts or certificates of deposit in banks covered by F.D.I.C.
insurance, Federal Land Bank debentures, Federal Home Loan Bank bonds or notes,
or similar short-term securities or obligations that are issued by, or are
insured or guaranteed in whole or in part by, the Federal Government or an
agency thereof or by a state government or an agency thereof and that the
Corporation (State) considers to be safe.
VI ANNUAL REPORTS.
The State will, annually, as soon as practicable after the end of its
fiscal year, furnish to the Government a report showing the uses of the assets
during the preceding 12-month period, and the book value thereof at the
beginning of that 12-month period. This report will include a statement that the
assets have not been used for any purpose not theretofore agreed upon between
the Government and State. At the same time, the State also will furnish to the
Government statements of financial condition and income and expenses for the
12-month period, including the money expended during the period for
administrative purposes and each type of program or other purpose. The report
will be signed by the official charged with the administration of the assets.
VII IMPLEMENTING AGREEMENTS. The parties hereof agree that they will execute all
instruments necessary to effectuate this agreement and prior agreements with
respect to the assets.
VIII GOVERNMENT SAVED HARMLESS.
The Government and its officials will be saved harmless against any
personal liability arising out of or resulting from the return of assets to the
State or said rural rehabilitation corporation or from carrying out any other
provisions of this or prior agreements or the aforesaid Act of May 3, 1950, and
the provisions of said Act shall continue to be applicable to the assets
administered by the State.
IX NO MEMBER OR DELEGATE CLAUSE.
No member of or delegate to Congress shall be admitted to any share or
part of this agreement or to any benefit which may arise therefrom.
X EFFECTIVE DATE.
This agreement is to become effective on the date executed by the last
party hereto signing it, at which time all existing agreements between the
parties hereto with respect to said assets shall terminate.
STATES OF AMERICA
States Department of Agriculture