S.D. Admin. R. 12:22:01:06

Current through Register Vol. 51, page 67, December 16, 2024

Section 12:22:01:06 - Loan requirements

The following are requirements for a loan under the agribusiness bonding program:

(1) The authority may take security for a loan in the form of a promissory note, security agreement, mortgage, or similar agreement;

(2) A loan may not be assumed; and any interest in land, improvements, or depreciable property may not be leased, sold, exchanged, used as a trade-in, used on an equipment-for-hire basis, or otherwise conveyed without the prior written consent of the authority. The authority may not consent to an assumption of its loan or the conveyance of property subject to its mortgage or security agreement unless the purchaser of the property is an eligible applicant for an authority loan; and

(3) The eligible applicant, bond purchaser, or lender must pay the following fees to the authority:

(a) Application fee - with the submission of an application, a nonrefundable fee of $200;

(b) Issuance fee - as of the date of issuance of the bonds, a fee equal to 1/8 of 1 percent of the bond amount with a $500 minimum;

(c) Assumption fee - if the loan is assumed, on the date of assumption, a fee equal to 1/16 of 1 percent of outstanding bond balance with a $300 minimum;

(d) Bond allocation fee - on the date of issuance, a fee equal to 1/8 of 1 percent of the bond amount; and

(e) Legal counsel fee - on the date of issuance of the bond, the fees and expenses of bond counsel and the authority's special counsel.

S.D. Admin. R. 12:22:01:06

23 SDR 161, effective 4/7/1997.

General Authority: SDCL 1-16E-24.

Law Implemented: SDCL 1-16E-7, 1-16E-7(18).