S.D. Admin. R. 12:22:03:13

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

Section 12:22:03:13 - Maturity and interest rate

If a loan is made, unless different terms are established upon the affirmative vote of two-thirds of the members of the board present and voting, the maturity date of the VASF funding may not be more than five years from the date of the final disbursement of loan proceeds, with regular payments amortized over not more than ten years from the date of final disbursement of loan proceeds. The first payment is due one year from the date of the final disbursement of loan proceeds. The borrower may request an extension of the date of the first payment, but the extension may not act to extend the final maturity date.

The board shall establish the standard interest rate for VASF loans from time-to-time. The board may deviate from the standard interest rate based on the economic impact of the project, risk, and other prudent lending criteria. The board shall consider the following when establishing the standard interest rate:

(1) State and national market interest rates;

(2) State and national economic conditions;

(3) The solvency and balance of the VASF; and

(4) Other economic or business information necessary to fulfill the board mission and to develop and promote production agriculture and value-added agricultural products.

The borrower is responsible for arranging other financing when the VASF loan is due. If the borrower is unable to obtain financing, the borrower may apply for an extension of the loan by the board at an interest rate and term established by the board. The borrower must submit any application for an extension by the monthly loan application deadline before the loan maturity date.

S.D. Admin. R. 12:22:03:13

40 SDR 109, effective 12/9/2013.

General Authority: SDCL 38-6-16.

Law Implemented: SDCL 38-6-14, 38-6-16.