§2219a Right of First Refusal

Summary

Gives a person who lost or gave up farm land because they couldn’t afford to keep it (the “previous owner”) the first chance to buy or lease that land before the lender offers it to others. If the lender decides to sell or lease the land, it must mail a certified notice to the previous owner within 15 days saying the owner can buy at the appraised fair market value or make a lower offer, or can lease at the appraised rental value or offer a lower rent. For sales, the previous owner has 30 days after getting the notice to make a purchase offer. An offer at the appraised value must be accepted within 15 days. A lower offer can be accepted or rejected; the lender must tell the previous owner within 15 days. If the lender later plans to sell to someone else at the same or a lower price or on different terms, the previous owner must be given a 15-day chance to match that deal. For leases, the previous owner has 15 days to offer to lease; offers at appraised rent must be accepted within 15 days unless the lender finds the owner can’t run a successful farm or meet lease terms. Public sales require notice to the previous owner, no discrimination, and a tie in top bids favors the previous owner. Lenders don’t have to provide financing, and one certified mailing to the last known address is enough. State rights stay in effect. This does not apply to a bank for cooperatives.