(a)    (1)    The Department may make direct loans not exceeding $15,000 to qualifying farmers at an interest rate which will make the program self-supporting. In establishing the interest rate from time to time, the Department shall take into account all of the expenses of the program including administrative expenses of the program, and possible losses. The interest rate may not exceed 1 percent above the cost of the loans to the State.

(2)    The Department may collect a uniform application fee, and retain from it any amounts not expended for credit reports, appraisals, and other expenses of processing loan applications.

(3)    Loans made under this subtitle shall be secured by a mortgage or lien on the property purchased and any improvements and fixtures, crops, and livestock on it, or whatever the Secretary of Agriculture may require.

(b)    (1)    To be eligible for a loan, an applicant shall meet all of the following conditions of eligibility:

(i)    The Governor shall have declared a state of emergency because of a natural disaster making the applicant’s farm eligible for aid;

(ii)    The applicant must have been the one to have suffered the actual loss as a result of the natural disaster;

(iii)    The applicant shall have applied for a farm loan from any agency of the federal government; and

(iv)    The applicant must make application for a farmer disaster loan within six months of the time of the natural disaster.

(2)    The conditions of eligibility listed in this section apply jointly and severally in the case of spouses who are living together, except that the domicile requirement may be satisfied by either spouse.

(3)    If a person receives a farm disaster loan from any agency of the federal government, that person shall reimburse the Department of Agriculture of Maryland for any loan made according to this subtitle, including any expense and interest as provided in subsection (a)(1) of this section.