Sec. 03.10.035. Use or disposal of mortgaged farm land.
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/ak/title-3/chapter-10/03-10-035·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Sec. 03.10.035. Use or disposal of mortgaged farm land.
(a)A borrower may not use farm land for a nonfarm use or sell, lease, or otherwise dispose of farm land if that land is encumbered by a mortgage given to secure the payment of a loan under this chapter unless the borrower either
(1)pays the outstanding balance of the loan in a lump sum or under other terms agreed to by the Board of Agriculture and Conservation that accelerate payment of the loan; or
(2)pays the outstanding principal balance for the remaining term of the loan at the prevailing rate of interest that is charged by commercial banks in the state during the calendar quarter in which the board receives notice of the change of use, sale, lease, or other disposal of the farm land.
(b)In this section, “nonfarm use” means a use of land other than for the production of domesticated plants and animals useful to humans, including forage and sod crops, grain and feed crops, fruits, vegetables, and livestock.