Program Authorization; Applicability of Federal Law

A. State Statutes. The Louisiana Direct Placement Agricultural Revenue Bond Program is authorized by Louisiana Revised Statutes of 1950, Title 3, Chapter 3-B, Sections 261-283. These statutes permit funding by Agricultural Revenue Bonds of a wide range of agricultural loans. B. Federal Statutes. However, Federal income tax law contains provisions which restrict the type of projects which may be financed through the Louisiana program. In order for LAFA's bonds to qualify as tax-exempt bonds under the code, each bond and each loan is subject to the restrictions contained in the code, particularly the provisions of Section 103(b)(6) and regulations promulgated by IRS pursuant thereto. AUTHORITY NOTE: Promulgated in accordance with R.S. 3:262, R.S. 3:266, R.S. 3:270 and Section 103(b)(6) of the Internal Revenue Code of 1954, as amended. HISTORICAL NOTE: Promulgated by the Department of Agriculture, Agricultural Finance Authority, LR 10:868 (November 1984).