South Dakota Administrative Rules
Title 12 - Department of Agriculture
Article 12:21 - Beginning farmer loan program
Chapter 12:21:01 - General provisions
Section 12:21:01:13 - Issuance of bond

The authority may not issue a bond for the purpose of financing a project for a specific beginning farmer unless, before its issuance, the authority has conducted a public hearing conforming to the applicable requirements of § 147(f)(2)(B) of the United States Internal Revenue Code of 1986 as amended to July 1, 2008. Upon receipt of a completed application, the executive director shall set a date, time, and place for the hearing. The executive director shall publish notice of hearing at least 14 days before the date of the hearing in a newspaper of general circulation available to residents in the county where the project is located. The notice shall include the date, time, and place of the hearing, the name of the beginning farmer, a general description of the project, and the right of individuals to request a local hearing. The hearing shall be held at the location stated in the notice unless, by the time scheduled for the hearing, the authority receives a written request that a local hearing be held.

If a local hearing is requested, the authority may cancel the previously scheduled hearing. The executive director shall set a date, time, and place for a local hearing and publish notice of the hearing in the local area as provided in this section. The date, time, and place for the local hearing must be reasonably convenient to persons affected by the project. Public hearings may be conducted by a staff member, a board member of the authority, an appointee or employee of the authority, or another qualified hearing officer.

The authority may not issue a bond for the purpose of financing a project by a specific beginning farmer unless, before the issuance, the Governor or another elected official of the state who is designated by the Governor, approves the issuance of the bond. Following the public hearing, the authority shall send to the Governor's office, or the office of the designated official, a statement describing each bond or series of bonds which it proposes to issue, along with a summary of the public comments received.

Following approval of the loan by the authority and upon completion of a public hearing and approval of the bond issuance by the Governor or another designated state official, the authority shall issue a bond, to be purchased by the lender, in the amount and fitting the terms of the loan to the beginning farmer. The principal and interest on the bond is a limited obligation payable solely out of the revenue derived from the loan to the beginning farmer and the underlying collateral or other security furnished by or on behalf of the beginning farmer. The principal and interest on the bond does not constitute an indebtedness of the authority or a charge against its general credit or general fund.

General Authority: SDCL 1-16E-24.

Law Implemented: SDCL 1-16E-24.

Authority bonds not state or subdivision obligation, SDCL 1-16E-11.