S.D. Admin. R. 12:22:02:07

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

Section 12:22:02:07 - Impermissible uses of loan proceeds

The borrower may not use the proceeds for any of the following purposes:

(1) Assistance in excess of what is needed to accomplish the purpose of the project;

(2) Distribution of payment to the owner, partners, shareholders, or beneficiaries of the borrower or members of their families if such persons will retain any portion of their equity in the borrower;

(3) Charitable institutions that would not have revenue from sales or fees to support the operation and repay the loan, churches, organizations affiliated with or sponsored by churches, and fraternal organizations;

(4) A loan to an applicant which has an application pending with or loan outstanding from another intermediary involving an IRP revolving fund if the IRP revolving fund loans would exceed the limits established in § 12:22:02:04;

(5) Agricultural production;

(6) The transfer of ownership unless the loan will keep the business from closing, or prevent the loss of employment opportunities in the area, or provide expanded job opportunities;

(7) Community antenna television services or facilities;

(8) Any illegal activity;

(9) Any project that is in violation of either a federal, state, or local environmental protection law or regulation or an enforceable land use restriction unless the assistance given will result in curing or removing the violation;

(10) Lending and investment institutions and insurance companies; or

(11) Golf courses, race tracks, or gambling facilities.

S.D. Admin. R. 12:22:02:07

28 SDR 44, effective 10/2/2001.

General Authority: SDCL 1-16E-24.

Law Implemented: SDCL 1-16E-8.