South Dakota Administrative Rules
Title 12 - Department of Agriculture
Article 12:22 - Agribusiness bonding and lending programs
Chapter 12:22:02 - Value added agribusiness relending program
Section 12:22:02:14 - Maturity and interest rate
In no event may the maturity of the loan be more than 10 years, nor may regular payments be amortized over more than 20 years. The VAFA shall match the term with the useful life of the collateral securing the loan. The interest rate shall be fixed for the term of the loan. The interest rate may not exceed the prime rate and may not be less than the federal discount rate, as published on the date of approval. The borrower is responsible for arranging other financing, if necessary, when the note comes due. If the borrower is unable to obtain financing, the borrower may apply before the loan due date for an extension of the loan by the VAFA at an interest rate and for a time period to be set by the VAFA.
General Authority: SDCL 1-16E-24.
Law Implemented: SDCL 1-16E-8.