Ala. Admin. Code r. 108-1-3-.04

Current through Register Vol. 43, No. 02, November 27, 2024

Section 108-1-3-.04 - Hay Barn Loan Program

Funds may be loaned by the authority to a borrower under the Hay Barn Loan Program if the borrower is engaged in agricultural operations in this state and will use the borrowed funds for construction of a new structure on a farm in Alabama to protect the borrower's hay, resulting in borrower receiving substantial economic benefits and improved hay quality.

(a) Applicants are subject to a $50 loan application fee for each application submitted.

(b) All borrowers seeking loans under this rule are subject to credit checks by the authority.

(c) All structures proposed to be built with funds loaned under this rule must meet certain standard criteria as determined by the authority and all building plans for any proposed project must be approved by an authority representative prior to award of a loan pursuant to this program.

(d) The maximum loan amounts available under this rule are as follows:

(i) $12,500 (40' x 60' barn), or

(ii) $25,000 (50' x 100' barn).

(e) An inspection of applicant's agricultural operation by an authority representative is required prior to loan approval.

(f) All amounts borrowed under this rule shall be repaid to the authority, plus interest at the applicable rate, no later than 4 years from the date loan proceeds are issued to the borrower.

(g) Interest charged on funds borrowed under this rule is 4%.

(h) All borrowed amounts must be fully collateralized.

(i) All loans issued pursuant to this rule require personal guaranty by an individual with sufficient assets to fully satisfy the borrowed amount in the event of default.

(j) The authority reserves the right to deny any loan application.

Ala. Admin. Code r. 108-1-3-.04

Adopted by Alabama Administrative Monthly Volume XXXV, Issue No. 07, April 28, 2017, eff. 5/20/2017.

Author: Alabama Agricultural Development Authority

Statutory Authority:Code of Ala. 1975, § 2-3A-7.