Code of Colorado Regulations
1200 - Department of Agriculture
1204 - Markets Division
8 CCR 1204-11 - RULES PERTAINING TO THE COLORADO AGRICULTURAL FUTURE LOAN PROGRAM
Part 5 - Terms and Conditions for Loan Program Loans

Universal Citation: 1200 CO Code Regs 5

Current through Register Vol. 47, No. 17, September 10, 2024

5.1. Unless otherwise provided in this rule, the provisions of this Part 5 apply to any loan awarded by the Department as part of the Loan Program.

5.2. Loans will be underwritten, originated, and serviced by one or more Financial Entities upon approval by the Department.

5.3. The maximum amount that may be loaned by the Loan Program to any applicant or group of applicants who have combined to submit an application, is $750,000.

5.3.1. The maximum amount does not apply to or include any grant funds that may be awarded by the Department or other sources of funding or financing the applicant may obtain.

5.3.2. The Commissioner may allow loan funds to be awarded in an amount above the maximum amount for loans in exceptional circumstances.

5.4. Interest rates for loans will be set at or below the current market rate. The Department, upon request from the Financial Entity, may determine different interest rates for individual loans after considering relevant factors, including, but not limited to:

5.4.1. The dollar amount of the loan;

5.4.2. The applicant's ability to repay the loan, including interest; and

5.4.3. The applicant's ability to obtain alternative lending.

5.5. Loan Repayment

5.5.1. Loans issued under the Loan Program shall provide for a repayment period not to exceed twenty years unless the Commissioner determines in the Commissioner's sole discretion that it would be in the best interest of the Department and the State of Colorado to approve a longer repayment period.

5.5.2. Loan repayments shall be monthly unless the Financial Entity originating the loan determines that a different repayment schedule is appropriate.

5.5.3. Loan repayments, including interest, may be deferred for a period of 3 months at the Financial Entity's discretion, and up to 18 months for good cause as determined by the Commissioner or the Commissioner's delegate.

5.6. Notwithstanding the provisions of Part 8 of this rule, the Department may enter into a contract with a Financial Entity, allowing such Financial Entity to earn as compensation a portion of the amount of loan repayment, interest, or other fees collected in connection with a loan originated and serviced by the Financial Entity.

Disclaimer: These regulations may not be the most recent version. Colorado may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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