S.D. Admin. R. 74:05:11:15

Current through Register Vol. 51, page 54, October 28, 2024

Section 74:05:11:15 - Financial security

Specific requirements to secure a loan must be included in the assistance agreement. The loan must be secured by one or more of the following:

(1) Full faith and credit of the borrower;

(2) Pledges of taxes or assessments;

(3) Pledges of facility revenue;

(4) Liens on the interest of the applicant in all real and personal property, easements, rights-of-way, water rights, and similar property rights, including leasehold interests, used in connection with the facility, whether owned at the time the loan is approved or acquired with loan funds;

(5) A security interest in the recipient's goods, machinery, inventory, equipment, and other personal property, including fixtures now owned or acquired later, together with all accessions and all substitutions and replacements; documents of title now existing or acquired later by the recipient, covering goods of any kind; accounts or contract rights now existing or arising later; instruments, documents, chattel paper, or general intangibles, including chooses in action, tax refunds, and insurance proceeds; rights to receive any payments in money or kind, or any other obligations or indebtedness owed to the recipient from any source, including guarantees of these rights; and all proceeds and products of all of the items listed in this subdivision; or

(6) For loans made for interim financing of a project, the assignment of the proceeds of the federal grant or loan to be made by an agency or instrumentality of the United States government for the project.

S.D. Admin. R. 74:05:11:15

23 SDR 195, effective 5/25/1997; 30 SDR 170, effective 5/10/2004.

General Authority: SDCL 46A-1-60.1 to 46A-1-60.3.

Law Implemented: SDCL 46A-1-60.1 to 46A-1-60.3.