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Simple English definitions for legal terms
land bank
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A quick definition of land bank:
A land bank is a program that sets aside land for conservation or tree-cultivation purposes. It is also a bank that was created under the Federal Farm Loan Act to provide low-interest loans secured by farmland. This helps farmers to get the money they need to grow crops and raise animals. The Federal Home Loan Bank is another type of bank that provides loans to small businesses, small farms, and small agribusinesses. It was created to help these businesses grow and succeed.
A more thorough explanation:
A land bank is a type of bank that provides loans to farmers at low interest rates. These loans are secured by farmland. It was created under the Federal Farm Loan Act.
Another meaning of land bank is a program in which land is retired from agricultural production for conservation or tree-cultivation purposes. This is also known as a soil bank.
For example, a farmer who needs money to buy new equipment or seeds can go to a land bank to get a loan. The land that the farmer owns is used as collateral for the loan.
Another example is a government program that pays farmers to retire their land from agricultural production. This helps to conserve the land and protect it from erosion.
In summary, a land bank is a type of bank that provides loans to farmers and a program that helps to conserve land.