Ala. Admin. Code r. 108-1-3-.06

Current through Register Vol. 43, No. 1, October 31, 2024

Section 108-1-3-.06 - Special Loan Program

The authority may loan funds to a borrower under the Special Loan Program if the borrower's engages in an agricultural operation in this state.

(a) The authority has the sole discretion determine if a borrower's proposed project may be financed with funds from the Special Loan Program.

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

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

(d) 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.

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

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

(g) The terms of a loan made pursuant to this rule (i.e., the interest rate on borrowed funds, the loan repayment period, and the amount of the loan) vary on a project-by-project basis. The authority reserves the right to determine the terms of a loan made under this rule.

(g) 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-.06

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.