The loan is a business loan to a person that is purchasing shares of stock to start a new bank. The loan is secured by farmland. I know the Call Reports says that a loan secured by farmland is an ag loan, but is there anyway we can code this (as it should be) a business loan instead of a farm loan? I know Dawn talks about purpose of the loan but I can't see where this overrides the farm land definition. This is why I hate using the Call Report definitions for CRA.

There are two categories for classification into business vs farm loan: collateral and purpose. If your collateral is either (1) farmland or (2) commercial property, Purpose is irrelevant. In the first case, it's a farm loan for CRA, in the second, it's businees (assuming you are under the threshold dollar amount.)

Have your lenders been talking to mine??? This SO sounds like something our folks would do.........

Becca, I was beginning to think you told your lenders to give mine ideas since I was teasing you a while back.

And actually you look to three issues. Collateral, Purpose and borrower. I need to have my call report book in front of me to answer this KC. There is a special category for financing bank or financial institutions as well as stock, which might come into play. I'll pop back tomorrow

The farm defination specifically talks about "other" loans to farmers for non-farm issues (like this) but the stock issue twists my brain, and if I remember right, the land on farm loans kind of overrides purpose (instead of being a preponderance of the three issues).

I haven't said a dang thing that won't confuse you more, so come back tomorrow when I have the book in front of me. The stock or financial link might even over ride farms, but heck, I don't have a clue with out coffee and my book