South Dakota Administrative Rules
Title 12 - Department of Agriculture
Article 12:22 - Agribusiness bonding and lending programs
Chapter 12:22:01 - General provisions
Section 12:22:01:06 - Loan requirements
Current through Register Vol. 51, page 43, September 23, 2024
The following are requirements for a loan under the agribusiness bonding program:
(1) The authority may take security for a loan in the form of a promissory note, security agreement, mortgage, or similar agreement;
(2) A loan may not be assumed; and any interest in land, improvements, or depreciable property may not be leased, sold, exchanged, used as a trade-in, used on an equipment-for-hire basis, or otherwise conveyed without the prior written consent of the authority. The authority may not consent to an assumption of its loan or the conveyance of property subject to its mortgage or security agreement unless the purchaser of the property is an eligible applicant for an authority loan; and
(3) The eligible applicant, bond purchaser, or lender must pay the following fees to the authority:
General Authority: SDCL 1-16E-24.
Law Implemented: SDCL 1-16E-7, 1-16E-7(18).