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New York Agricultural Law Questions & Answers

Q: One of the parties joining our LLC appears to have secured an FSA loan with LLC crops and acreage. Is this legal?

One of the three partners was responsible for securing operating funds and was the former tenant of the acreage involved. He applied for and was approved for an FSA microloan prior the formation of the LLC. He invested part of the FSA sourced funds back into the LLC farm but at a reduced stake in... Read more »

Barry Eran Janay answered on Jan 23, 2017

You are right to be worried since based on the facts you've given it does appear that a violation of the terms of the loan took place at best and it may be fraud at worst. All of this can affect the LLC if a lawsuit is filed or if property owned by the LLC becomes the subject of the litigation.... Read more »

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