Ala. Admin. Code r. 108-1-3-.05

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

Section 108-1-3-.05 - Irrigation Loan Program

The authority may loan funds to a borrower under the Irrigation Loan Program if the borrower's agricultural operations include production of Alabama fruits, vegetables, or nuts, and the borrowed funds will be used to aid with the cost of irrigating those crops.

(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) Irrigation systems proposed to be installed with the funds borrowed pursuant to this rule must meet certain criteria as determined by the authority and all building or construction plans must be approved by an authority representative prior to award of a loan under this rule.

(d) The amount of a loan made under this rule is an amount negotiated and mutually agreed to by the authority and a borrower.

(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 3.5%.

(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-.05

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.