A Farmer is required to meet the following:
1. Does not meet the Lender's minimum standards of creditworthiness to receive an agriculture production loan in the normal course of the Lender's business;
2. Have proof of Wisconsin residence, or if a partnership, corporation or association, the legal entity must be legally registered in Wisconsin;
3. Actively engaged in the farm operation;
4. Provide documentation that the debt-to-asset ratio of the farming operation is at least 40% based on a current financial statement;
5. Have sufficient collateral to cover the value of the CROP loan;
6. Is not delinquent in making child support, birthing expense or maintenance payments;
7. Has not defaulted on previous WHEDA loans (the Farmer would become eligible upon repayment of the defaulted loan balance); and
8. Is not in Forbearance on a previous CROP loan (the Farmer would become eligible upon satisfaction of the Forbearance).
In addition, it is the Lender's responsibility to make the following assurances when evaluating a Farmer's application for participation in CROP:
· The Lender will consider the Farmer's assets, cash flow and managerial ability to repay the loan, and in the Lender's judgment, it is reasonably likely that the Farmer's primary and secondary sources of payment are sufficient to preclude a voluntary or involuntary liquidation before the end of the loan term;
· To the Lender's knowledge, the Farmer is neither currently in bankruptcy, has not filed for, nor anticipates filing bankruptcy (Chapter 7, 11, 12, or 13) at the time of applying for or during the term of the CROP loan. Written approval must be obtained from WHEDA for any Farmer wishing to participate in CROP who is in, or is contemplating bankruptcy; and
· To the Lender's knowledge, the Farmer has no outstanding judgments or tax liens.
