CHAPTER 453

An Act to provide for the creation of a loan fund to be known as the
Produce Market Loan Fund; to define certain terms, to prescribe
under what conditions and for what purposes loans may be made
from the said fund; to prescribe certain duties of the State Treasurer
in connection therewith, and to appropriate funds for the establish-
ment thereof.

[H 539]

Approved April 3, 1954

Be it enacted by the General Assembly of Virginia:

1. 1. For purposes of this act:

(a) “Wholesale Produce Market” means a single, integrated, public
market located in a substantially contiguous area which serves as a major
source of supply of perishable agricultural commodities consumed in a
large consuming area and which is operated primarily for the purpose of
selling or otherwise disposing of perishable agricultural commodities at
wholesale for resale to others.

(b) “Perishable agricultural commodities” means agricultural com-
modities and products thereof, consisting principally of fresh fruits and
vegetables, handled alone or in combination with poultry, eggs, meats, sea-
food and dairy products.

(c) “Eligible borrower” means any municipality, political subdivision
or agency of the State, including any city port authority or produce market
authority established by or under the laws of this State.

2. In order to promote the general welfare by promoting the efficient
and economic handling of farm and food products at wholesale in the
interests of the grower, the food trade and the consuming public; in order
to reduce greatly increasing marketing costs of food, excessive waste and
spoilage; and in order to combat reduced prices to producers and increased
costs to consumers caused by inadequate and obsolete market facilities,
there is hereby created a special loan fund to be known as the Produce
Market Loan Fund.

The purpose of this fund is to provide equity capital for the con
struction of wholesale produce markets within the Commonwealth.
3. Any eligible borrower desiring to build a wholesale produce market
may apply to the Commissioner of Agriculture and Immigration for a loan
from this fund to be used for the purpose set forth in the preceding sec-
tion, provided such market is to be operated in such a manner as to com-
ply with the objectives of this act and for the duration of any such loan,
to earn revenues sufficient only to conduct its business and meet its obliga-
tions, with reasonable reserves.

Such application shall be made on forms prescribed by the Com-
missioner. In addition to other information called for, such application
shall give information as to the financial needs of such facility, the use
expected to be made of the requested loan, the anticipated sources of all
funds required to build the facility, the anticipated revenue of such
facility, wherein the public welfare will be promoted by making the loan,
and the reasons why such facility is expected to be self-liquidating.

4. When the Commissioner shall have satisfied himself as to the need
for such wholesale produce market and as to the financial soundness of
such market and all other matters which he may deem material to the
financial success of such market, he shall forward the application to the
Governor and shall at the same time give his opinion as to whether such
loan should be granted.

5. If the Governor deems it advisable, he may authorize such loan,
provided that no such loan shall be in excess of thirty-three and one-third
per centum of the cost of the site and the cost of constructing such market
nor shall any such loan in any event exceed three hundred thousand dol-
lars, and provided further that in no case shall the borrower obtain from
sources other than the Produce Market Loan Fund less than one hundred
thousand dollars of the estimated cost of such market.

After the Governor has authorized any such loan, no transfer of funds
shall actually take place until the borrower shall have firm commitments
for all of the remaining funds needed to construct the wholesale produce
market.

6. All loans made under this act shall be repayable within twenty-
three years, with interest at the rate of three per centum per annum on
the unpaid balance, after the third year of such loan. At least five per
centum of the principal amount of such loan shall be repaid annually after
the third year, with the privilege of anticipation. Each such equity loan
shall be secured both as to principal and interest in such manner as the
Governor shall prescribe.

7. The State Treasurer shall be the custodian of all evidence of
debt and other instruments incidental to loans made under this act, and
shall have the authority to require such audits of the finances of such
ee produce market as he may deem necessary or is prescribed

y law.

8. For the purposes hereinabove set forth there is hereby estab-
lished the Produce Market Loan Fund. From this fund there shall be
paid as loans by the State Treasurer on warrants of the Comptroller on
vouchers issued by the Commissioner of Agriculture and Immigration,
accompanied by such evidence of debt and security as may have been
prescribed by the Governor, such sums, not exceeding the uncommitted
balance of such Produce Market Loan Fund, as may have been approved
by the Governor.

9. All payments into the State Treasury representing the repayment
of principal or interest shall be credited to the General Fund of the State.
2. There is hereby appropriated from the general fund of the State
Treasury the sum of three hundred thousand dollars to be paid into the
Produce Market Loan Fund established by this act and to be expended
as by this act provided.