S.D. Admin. R. 12:21:01:12
The beginning farmer may apply on forms provided by the authority for an authority loan with any lender. The authority shall assign the approved loan to that lender. Authority loan eligibility is determined by the requirements of SDCL chapter 1-16 E and this article. If a beginning farmer meets the loan eligibility requirements in § 12:21:01:13, the decision on whether to enter into the loan agreement is between the beginning farmer and the lender. They must agree on terms of the loan, such as interest rates, length of loan, down payment, service fees, origination charges, and repayment schedule. The terms may be no more onerous than those charged to similar customers for similar loans, taking into account the tax-exempt nature of the interest on the loan.
Following completion of the loan application by the beginning farmer and approval by the lender, the loan application must be submitted to the authority for its review and approval. The authority's review shall include whether:
As part of the review, the authority and lender may require the beginning farmer to submit appraisals on part or all of the property being financed by the loan or to submit other documents and information necessary to complete the review of the loan application. Following approval and issuance of the bond, the authority shall enter into a loan agreement with the beginning farmer and then assign the loan to the lender. The authority may charge fees as needed to defray its costs for processing the loan and bond.
S.D. Admin. R. 12:21:01:12
General Authority: SDCL 1-16E-24.
Law Implemented: SDCL 1-16E-24.
Authority bonds not state or subdivision obligation, SDCL 1-16E-11.