Section R64-1-3 - Administration of Agriculture Resource Development Loan Program(1) Annually, the commission shall allocate funds appropriated for projects that further the objectives of the ARDL program, including:(a) conserve agricultural resources of the state;(b) increase agriculture yields and efficiency for croplands, orchards, pastures, range, and livestock;(c) maintain and improve water quality;(d) conserve and improve wildlife habitat;(e) prevent flooding, drought, or other natural disasters; and(f) provide and maintain protection of a crop or animal resource.(2) An applicant shall: (a) submit finalized project proposals to the loan administrator through their conservation district for review;(b) comply with district, zone, and commission application procedures; and(c) be subject to credit analysis and collateral valuation as required by the commission, including repayment capability, past and current financial holdings, fiscal obligations, and debt history.(3) The UCC subcommittee shall:(a) review applications for funding availability, including if the application exceeds loan limits established by commission policy;(b) if requests may exceed available funds, rate and prioritize applications according to: (i) the quality of improvement projects;(ii) the improvements sought by the commission; and(c) rating and approval information from CD boards.(4) The commission will award loan contracts upon receipt of executed documents, generally consisting of promissory notes and other documents necessary to perfect liens on required security.(5) If available ARDL funds are $3,500,000 or less as of the commission's approval date, total borrowings by one entity shall be limited to $250,000. Available ARDL funds shall be based on the current financial statement published by the department.(6) The commission may charge an applicant a loan or technical assistance fee if proposed projects include technical issues that are sufficiently complex. The commission may require projects be supervised by designated personnel.(7) Contracts with loan recipients shall be based on repayment ability or defined collateral. Contracts shall include schedules for loan repayment according to the agreed upon interest rates and related fiscal conditions. The loan administrator may acquire appraisals and estimates of collateral values and may obtain security or collateral to satisfy the contract until agreed upon amounts have been collected.(8) Interest rates shall be set in policies and procedures adopted by the commission. The commission may recalculate interest rates based on:(a) consideration of interest rates charged by other agricultural lenders;(b) consideration of economic factors such as inflation, weather, and natural disasters; or(c) following a recommendation from program staff.(9) The commission may charge a percentage of loan disbursement as an administrative fee. A fee shall be required if the balance of available ARDL funds is $3.5 million or less.(10) Commission designated personnel shall inspect and certify loan funded projects to ensure compliance with contractual provisions.(11) Under the direction of the commission, the loan administrator shall: (b) interpret guidelines;(c) administer record-keeping operations;(d) research financial collateral security information;(e) process and service contracts associated with program functions;(f) recommend loan approvals to the commission;(g) analyze resource improvement and management plans; and(h) administer loan servicing and collection activities.Amended by Utah State Bulletin Number 2014-21, effective 10/8/2014Amended by Utah State Bulletin Number 2022-04, effective 2/11/2022Amended by Utah State Bulletin Number 2023-18, effective 8/29/2023