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                                         SUBSTITUTE SENATE BILL NO. 5174

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                                                                            C 029 L 87

State of Washington                              50th Legislature                              1987 Regular Session

By Senate Committee on Agriculture (originally sponsored by Senators Hansen, Barr, Gaspard, Bauer, Anderson, Bailey, Warnke, Lee and von Reichbauer)

Read first time 1/29/87.

AN ACT Relating to investment by the state investment board in the Washington land  bank; and amending RCW 31.30.080 and 43.33A.080.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 8, chapter 284, Laws of 1986 and RCW 31.30.080 are each amended to read as follows:

With approval by the Washington land bank, a borrower may elect, during the first five years of a loan originated by the Washington land bank or in which it participates with another lender, to defer payment of all or any portion of the principal and/or interest due from the borrower to the corporation((, unless the)) if deferral of such payment ((would)) will not cause the principal and accrued interest on such loan to exceed sixty-five percent of the original appraised value or the current appraised value, whichever is less.  Upon such election, the payment schedule related to such loan shall be recomputed and modified to provide for repayment of the principal amount of the loan plus accrued but unpaid interest and all interest which shall accrue during the period of deferral and thereafter over a term equal to the original term of the loan, commencing as of the date of such deferral.

        Sec. 2.  Section 8, chapter 3, Laws of 1981 and RCW 43.33A.080 are each amended to read as follows:

          The state investment board may invest those funds which are not under constitutional prohibition in:  (1) Farm ownership and soil and water conservation loans fully guaranteed as to principal and interest under the Bankhead-Jones farm tenant act administered by the United States department of agriculture; and (2) the Washington land bank established by chapter 31.30 RCW.