(a) Immunity.--The Commonwealth, the State Treasurer and the commission shall not be liable to a lending institution in any manner for payment of the principal or interest on the loan made to an eligible borrower.
(b) Loss of subsidy upon default.--A default by an eligible borrower in repayment of an Agriculture-Linked Investment Loan shall result in the loss of the subsidy provided under this chapter, in which case the interest rate payable by the lending institution shall revert to the interest rate on deposits as established by the Board of Finance and Revenue from time to time as otherwise established by law. As used in this subsection, the term "default" means a loan which is more than 90 days in arrears on payments.
(c) Availability of funding.--The subsidy provided by this chapter shall continue only so long as the commission furnishes money to pay for it. In the event funding is exhausted or otherwise unavailable, the interest rate payable by lending institutions shall revert to the interest rate on deposits in State depositories as established from time to time by the Board of Finance and Revenue as otherwise provided by law.
Structure Pennsylvania Consolidated & Unconsolidated Statutes