ARSD Article 12:07 — AGRICULTURE ENTERPRISE PROGRAMS

GOVERNOR'S OFFICE OF ECONOMIC DEVELOPMENT GOVERNOR'S OFFICE OF ECONOMIC DEVELOPMENT

Chapter 12:07:01 Guaranteed loans, Repealed

ARSD 12:07:01 Repealed chapter

CHAPTER 12:07:01

GUARANTEED LOANS

(Repealed. 12 SDR 117, effective January 19, 1986)

Chapter 12:07:02 Grants to cooperatives, Repealed

ARSD 12:07:02 Repealed chapter

CHAPTER 12:07:02

GRANTS TO COOPERATIVES

(Repealed. 12 SDR 117, effective January 19, 1986)

Chapter 12:07:03 Student loans, Repealed

ARSD 12:07:03 Repealed chapter

CHAPTER 12:07:03

STUDENT LOANS

(Repealed. 12 SDR 117, effective January 19, 1986)

Chapter 12:07:04 Grants to graduated students, Repealed

ARSD 12:07:04 Repealed chapter

CHAPTER 12:07:04

GRANTS TO GRADUATED STUDENTS

(Repealed. 12 SDR 117, effective January 19, 1986)

Chapter 12:07:05 Other project grants, Repealed

ARSD 12:07:05:01 Repealed

Agricultural youth institute grants.** Repealed.

History

Source: 2 SDR 58, effective February 29, 1976; repealed, 12 SDR 117, effective January 19, 1986.

ARSD 12:07:05:02 Repealed

Future farmers of America and similar organizational grants.** Repealed.

History

Source: 2 SDR 58, effective February 29, 1976; repealed, 12 SDR 117, effective January 19, 1986.

ARSD 12:07:05:03 Transferred

Transferred to § 12:07:06:02.**

Chapter 12:07:06 Young farmer-rancher seminar, Repealed

ARSD 12:07:06 Repealed chapter

CHAPTER 12:07:06

YOUNG FARMER-RANCHER SEMINAR

(Repealed. 29 SDR 34, effective September 18, 2002)

Chapter 12:07:07 South Dakota agricultural youth institute, Repealed

ARSD 12:07:07 Repealed chapter

CHAPTER 12:07:07

SOUTH DAKOTA AGRICULTURAL YOUTH INSTITUTE

(Repealed. 29 SDR 34, effective September 18, 2002)

Chapter 12:07:08 BOSDRC grants, Repealed

ARSD 12:07:08:01 Repealed

Definitions.** Repealed.

History

Source: 12 SDR 117, effective January 19, 1986; 12 SDR 128, 12 SDR 154, effective July 1, 1986; 17 SDR 141, effective March 25, 1991; 29 SDR 34, effective September 18, 2002; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:08:02 Repealed

Grants offered annually -- Purpose.** Repealed.

History

Source: 12 SDR 117, effective January 19, 1986; 12 SDR 128, 12 SDR 154, effective July 1, 1986; 17 SDR 141, effective March 25, 1991; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:08:02.01 Repealed

Cutoff date.** Repealed.

History

Source: 17 SDR 141, effective March 25, 1991; 29 SDR 34, effective September 18, 2002; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:08:03 Repealed

Eligibility for grant.** Repealed.

History

Source: 12 SDR 117, effective January 19, 1986; 12 SDR 128, 12 SDR 154, effective July 1, 1986; 17 SDR 141, effective March 25, 1991; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:08:04 Repealed

Director to review applications for eligibility.** Repealed.

History

Source: 12 SDR 117, effective January 19, 1986; 12 SDR 128, 12 SDR 154, effective July 1, 1986; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:08:05 Repealed

Application required -- Contents of form.** Repealed.

History

Source: 12 SDR 117, effective January 19, 1986; 12 SDR 128, 12 SDR 154, effective July 1, 1986; 17 SDR 141, effective March 25, 1991; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:08:06 Repealed

Grant amount limited.** Repealed.

History

Source: 12 SDR 117, effective January 19, 1986; 12 SDR 128, 12 SDR 154, effective July 1, 1986; 17 SDR 141, effective March 25, 1991; 19 SDR 93, effective January 1, 1993; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:08:07 Repealed

Committee to review applications -- Membership.** Repealed.

History

Source: 12 SDR 117, effective January 19, 1986; 12 SDR 128, 12 SDR 154, effective July 1, 1986; 17 SDR 141, effective March 25, 1991; 29 SDR 34, effective September 18, 2002; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:08:08 Repealed

Competitive grants.** Repealed.

History

Source: 12 SDR 117, effective January 19, 1986; 12 SDR 128, 12 SDR 154, effective July 1, 1986; 17 SDR 141, effective March 25, 1991; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:08:09 Repealed

BOSDRC grant review criteria.** Repealed.

History

Source: 12 SDR 117, effective January 19, 1986; 12 SDR 128, 12 SDR 154, effective July 1, 1986; 17 SDR 141, effective March 25, 1991; 19 SDR 93, effective January 1, 1993; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:08:10 Repealed

Committee review process.** Repealed.

History

Source: 12 SDR 117, effective January 19, 1986; 12 SDR 128, 12 SDR 154, effective July 1, 1986; 17 SDR 141, effective March 25, 1991; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:08:11 Repealed

Secretary's approval required.** Repealed.

History

Source: 12 SDR 117, effective January 19, 1986; 12 SDR 128, 12 SDR 154, effective July 1, 1986; 17 SDR 141, effective March 25, 1991; 29 SDR 34, effective September 18, 2002; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:08:12 Repealed

Distribution of grant funds.** Repealed.

History

Source: 12 SDR 117, effective January 19, 1986; 12 SDR 128, 12 SDR 154, effective July 1, 1986; 17 SDR 141, effective March 25, 1991; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:08:13 Repealed

Reports required of recipients.** Repealed.

History

Source: 12 SDR 117, effective January 19, 1986; 12 SDR 128, 12 SDR 154, effective July 1, 1986; 17 SDR 141, effective March 25, 1991; 45 SDR 31, effective September 13, 2018.

Chapter 12:07:09 Junior livestock loans, Repealed

ARSD 12:07:09 Repealed chapter

CHAPTER 12:07:09

JUNIOR LIVESTOCK LOANS

(Repealed. 29 SDR 34, effective September 18, 2002)

Chapter 12:07:10 Natural resources conservation equipment loan program

ARSD 12:07:10:01 Definitions

Terms used in this chapter mean:

(1) "Commission," the South Dakota conservation commission;

(2) "District," any conservation district;

(3) "Loan," a conservation tillage equipment loan; and

(4) "Equipment," machinery or equipment designed or used for conservation practices.

History

Source: 12 SDR 117, effective January 19, 1986; 12 SDR 128, 12 SDR 154, effective July 1, 1986; 17 SDR 141, effective March 25, 1991.
General Authority: SDCL 38-6-8.1.
Law Implemented: SDCL 38-6-3, 38-6-8.

ARSD 12:07:10:02 Purpose

Conservation districts may purchase equipment for soil natural resources conservation practices and programs using proceeds from the natural resource conservation equipment loan program. Districts may provide the equipment to the farmers and ranchers of this state to implement soil natural resources conservation practices and programs.

History

Source: 12 SDR 117, effective January 19, 1986; 12 SDR 128, 12 SDR 154, effective July 1, 1986; 17 SDR 141, effective March 25, 1991; 45 SDR 31, effective September 13, 2018.
General Authority: SDCL 38-6-8.1.
Law Implemented: SDCL 38-6-3, 38-6-8.

ARSD 12:07:10:03 Eligibility

A district as defined in SDCL 38-7-2 is eligible for a loan.

History

Source: 12 SDR 117, effective January 19, 1986; 12 SDR 128, 12 SDR 154, effective July 1, 1986; 17 SDR 141, effective March 25, 1991.
General Authority: SDCL 38-6-8.1.
Law Implemented: SDCL 38-6-3, 38-6-8.

ARSD 12:07:10:04 Application

A district may apply for a loan from the office by submitting an application to the commission. The forms shall be supplied by the office. The application form shall contain the following information:

(1) The name and address of the district and the district's secretary;

(2) The amount of the loan request;

(3) The term of the loan request;

(4) A statement of when and how the loan proceeds will be used;

(5) A proposed repayment schedule;

(6) A current financial statement of the district;

(7) A projected financial statement of the district over the term of the loan requested;

(8) A certified copy of the minutes of the district's meeting at which the loan request was authorized;

(9) The source and policy limits of liability and property damage insurance to be carried on the equipment purchased; and

(10) The date of the application.

History

Source: 12 SDR 117, effective January 19, 1986; 12 SDR 128, 12 SDR 154, effective July 1, 1986; 17 SDR 141, effective March 25, 1991.
General Authority: SDCL 38-6-8.1.
Law Implemented: SDCL 38-6-3, 38-6-8.

ARSD 12:07:10:05 Commission disposition

The commission shall review the application requested for accuracy and validity. The commission shall submit the completed application to the administrator with recommendations of approval, conditional approval subject to modifications or performance of certain actions, or disapproval. If the recommendation is to disapprove the application, the commission shall transmit the reasons for the recommendation to the administrator.

History

Source: 12 SDR 117, effective January 19, 1986; 12 SDR 128, 12 SDR 154, effective July 1, 1986; 17 SDR 141, effective March 25, 1991.
General Authority: SDCL 38-6-8.1.
Law Implemented: SDCL 38-6-3, 38-6-8.

ARSD 12:07:10:06 Loan decision

Upon receipt of the application and the commission recommendation, the administrator shall take the following action:

(1) Review the application and the commission's recommendations to determine that the application meets the requirements contained in this chapter and that the application and loan are consistent with the purposes and policies established in §12:07:09:02 and SDCL chapter 38-6;

(2) Approve the application as presented, conditionally approve the application subject to modifications or performance of certain actions, or disapprove the application; and

(3) Notify the applicant and commission of the decision in writing within 30 days after the date of receipt of the application. If the decision is to disapprove the application and loan, the administrator shall include the reasons for the decision in the notification.

History

Source: 12 SDR 117, effective January 19, 1986; 12 SDR 128, 12 SDR 154, effective July 1, 1986; 17 SDR 141, effective March 25, 1991.
General Authority: SDCL 38-6-8.1.
Law Implemented: SDCL 38-6-3, 38-6-8.

ARSD 12:07:10:07 Loan proceeds

The district shall use the loan proceeds for the purchase of equipment.

History

Source: 12 SDR 117, effective January 19, 1986; 12 SDR 128, 12 SDR 154, effective July 1, 1986; 17 SDR 141, effective March 25, 1991.
General Authority: SDCL 38-6-8.1.
Law Implemented: SDCL 38-6-3, 38-6-8.

ARSD 12:07:10:08 Loan amount

The maximum loan amount that can be borrowed by a district is $100,000. The loan amount may not exceed eighty percent of the purchase value of the equipment.

History

Source: 12 SDR 117, effective January 19, 1986; 12 SDR 128, 12 SDR 154, effective July 1, 1986; 17 SDR 141, effective March 25, 1991; 45 SDR 31, effective September 13, 2018.
General Authority: SDCL 38-6-8.1.
Law Implemented: SDCL 38-6-3, 38-6-8.

ARSD 12:07:10:09 Loan repayment

Repayment of the loan shall be based on the purpose of the loan, the type and expected useful life of the equipment, and the loan amount.

History

Source: 12 SDR 117, effective January 19, 1986; 12 SDR 128, 12 SDR 154, effective July 1, 1986; 17 SDR 141, effective March 25, 1991.
General Authority: SDCL 38-6-8.1.
Law Implemented: SDCL 38-6-3, 38-6-8.

ARSD 12:07:10:10 Loan maturities

The loan maturity shall be based on the purpose, the type and expected useful life of the equipment, and loan amount. The term may not exceed five years. There is no prepayment penalty.

History

Source: 12 SDR 117, effective January 19, 1986; 12 SDR 128, 12 SDR 154, effective July 1, 1986; 17 SDR 141, effective March 25, 1991.
General Authority: SDCL 38-6-8.1.
Law Implemented: SDCL 38-6-3, 38-6-8.

ARSD 12:07:10:11 Interest rates

The interest rate initially established for a loan shall remain constant during the existence of the loan unless otherwise provided in the loan documentation. The interest rate will be established by the secretary at least once annually and shall be based on current market rates.

History

Source: 12 SDR 117, effective January 19, 1986; 12 SDR 128, 12 SDR 154, effective July 1, 1986; 17 SDR 141, effective March 25, 1991; 19 SDR 93, effective January 1, 1993; 45 SDR 31, effective September 13, 2018.
General Authority: SDCL 38-6-8.1.
Law Implemented: SDCL 38-6-3, 38-6-8.

ARSD 12:07:10:12 Subsequent loan requests

The administrator shall consider subsequent loan requests by a district according to the following criteria:

(1) The process as defined in §§ 12:07:10:03 to 12:07:10:06, inclusive;

(2) The limit in § 12:07:10:08;

(3) A review of existing loan status and performance; and

(4) Payoff of the borrower's outstanding loan principal and interest.

History

Source: 12 SDR 117, effective January 19, 1986; 12 SDR 128, 12 SDR 154, effective July 1, 1986; 17 SDR 141, effective March 25, 1991.
General Authority: SDCL 38-6-8.1.
Law Implemented: SDCL 38-6-3, 38-6-8.

ARSD 12:07:10:13 Office's responsibilities

The office shall obtain and maintain the documentation of record necessary for the perfection of a security interest.

History

Source: 12 SDR 117, effective January 19, 1986; 12 SDR 128, 12 SDR 154, effective July 1, 1986; 17 SDR 141, effective March 25, 1991.
General Authority: SDCL 38-6-8.1.
Law Implemented: SDCL 38-6-3, 38-6-8.

ARSD 12:07:10:14 Borrower's responsibilities

The borrower is responsible for the following:

(1) Identifying collateral by the following:

(a) Year;

(b) Type;

(d) Model number; and

(e) Serial number;

(2) Paying fees for the perfection of a security interest;

(3) Maintaining financial information and accounting records; and

(4) Submitting management reports, financial reports, and accounting records to the office and commission upon request.

History

Source: 12 SDR 117, effective January 19, 1986; 12 SDR 128, 12 SDR 154, effective July 1, 1986; 17 SDR 141, effective March 25, 1991.
General Authority: SDCL 38-6-8.1.
Law Implemented: SDCL 38-6-3, 38-6-8.

Chapter 12:07:11 Weed and pest control equipment loans, Repealed

ARSD 12:07:11 Repealed chapter

CHAPTER 12:07:11

WEED AND PEST CONTROL EQUIPMENT LOANS

(Repealed. 23 SDR 179, effective April 29, 1997)

Chapter 12:07:12 Rural development loans and participations

ARSD 12:07:12:01 Definitions

Terms used in this chapter mean:

(1) "Lender," as defined in SDCL 54-3-14; and

(2) "Participation," the portion or share of a loan which one lender purchases from another lender;

(3) "Bridge Loan," a short term loan made with the intent of being bought by USDA or another lender;

(4) "USDA," the United States Department of Agriculture; and

(5) "Office," the agricultural enterprise program; Governor's Office of Economic Development.

History

Source: 17 SDR 141, effective March 25, 1991; 38 SDR 45, effective September 22, 2011; 45 SDR 31, effective September 13, 2018; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-30.
Law Implemented: SDCL 1-53-24, 1-53-29.

ARSD 12:07:12:02 Purpose

The office shall participate in or make rural development loans for projects which engage in production, processing, marketing, or exporting of agricultural products.

History

Source: 17 SDR 141, effective March 25, 1991; 23 SDR 179, effective April 29, 1997; 25 SDR 95, effective January 20, 1999; 29 SDR 34, effective September 18, 2002; 38 SDR 45, effective September 22, 2011; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-30.
Law Implemented: SDCL 1-53-24, 1-53-29.

ARSD 12:07:12:03 Eligibility requirements for applicant

To be eligible for a loan, an applicant must meet the following requirements:

(1) If the applicant is an individual, the applicant must meet the following requirements:

(a) Be a resident of this state at the time of loan closing;

(b) Have the principal residence and the majority of the farm operation located in South Dakota;

(d) Be a farmer or rancher who has derived 60 percent of all gross income in the last tax year from farming. Applications not meeting this qualification may be accepted only if a waiver is obtained from the secretary. The secretary may issue a waiver for extraordinary circumstances such as illness or enrollment in a higher education institution or postsecondary technical institute or vocational school;

(e) Be creditworthy according to the standards of the lender;

(f) Be unable to provide the financing needed from the applicant's own resources or to obtain it from conventional sources at rates and terms the applicant can reasonably be expected to meet;

(2) If the applicant is a cooperative, corporation, partnership, or other legal entity, it must meet the following requirements:

(a) Have the majority of memberships and stock in the entity owned by farmers who meet the criteria in subdivisions (1)(a) to (1)(f), inclusive, of this section with other members or stockholders furnishing their proportionate share of the costs;

(b) If the entity is not made up of farmers who meet the criteria in subdivisions (1)(a) to (1)(f), the entity must indirectly provide assistance to farmers or ranchers or members of their families. The entity must be unable to provide the needed financing from its own resources or to obtain such financing from conventional sources in the area at rates and terms the entity can reasonably be expected to meet;

(3) If the applicant is applying for a bridge loan, the applicant must meet the eligibility criteria of the lender or USDA program;

(4) If the applicant is applying as a small or beginning farmer, the applicant must meet the criteria set forth above and the small or beginning farmer definition set forth in § 12:07:05.01:01;

(5) Coapplicants must meet the same criteria as applicants in the applicable category.

History

Source: 17 SDR 141, effective March 25, 1991; 23 SDR 179, effective April 29, 1997; 28 SDR 119, effective March 5, 2002; 29 SDR 34, effective September 18, 2002; 38 SDR 45, effective September 22, 2011; 45 SDR 31, effective September 13, 2018; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-30.
Law Implemented: SDCL 1-53-24, 1-53-29.

ARSD 12:07:12:04 Eligibility requirements for lender

To be eligible to participate in the rural development loan participation program a lender must be subject to credit examination and supervision either by an agency of the United States or of this state and be in good standing with its licensing authority. Credit unions subject to credit examination and supervision by either the national credit union administration or an agency of this state may be eligible. In addition, the lender must meet one of the following requirements:

(1) Be a local lender who routinely provides loan services to the community in which or near which the project is or will be located; or

(2) Be a lender who is not local, but who maintains an office near enough to the location of the collateral to discharge its loan making and loan servicing responsibilities, who normally makes loans in the geographical region in which the proposed project is located, and who has specific expertise in loans for the proposed project and can provide evidence of such expertise to the office.

History

Source: 17 SDR 141, effective March 25, 1991; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-30.
Law Implemented: SDCL 1-53-24, 1-53-29.

ARSD 12:07:12:05 Eligibility requirements for project

To be eligible for a loan under this chapter, a project must be located in this state and must demonstrate the potential of doing one or more of the following:

(1) Producing or adding value to agricultural commodities and goods produced in this state;

(2) Developing alternatives for agricultural and natural resources including those involving nontraditional crops and livestock, new marketing strategies, innovative production systems, or a variety of farm-based small business, tourism, or wildlife-associated recreation options;

(3) Using aquaculture;

(4) Developing or enhancing horticultural products or methods, such as through the production of ornamental plants and trees and other nursery products such as bulbs, florists' greens, flowers, shrubbery, flower and vegetable seeds, sod, or the growing of vegetables from seed to the transplant stage;

(5) Developing or enhancing forestry products or methods, such as through forestry projects which include establishments primarily engaged in the operation or tree farms, forest nurseries, or orchards and related activities.

History

Source: 17 SDR 141, effective March 25, 1991; 25 SDR 95, effective January 20, 1999; 38 SDR 45, effective September 22, 2011; 45 SDR 31, effective September 13, 2018; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-30.
Law Implemented: SDCL 1-53-24, 1-53-29.

ARSD 12:07:12:06 Permissible uses of loan proceeds

The loan proceeds may only be used for purposes related to the project, including the following:

(1) Purchase of land necessary to the project and site development or improvement;

(2) Construction or acquisition and remodeling of buildings and facilities, including purchase and installation of machinery and equipment; and

(3) Livestock purchases.

History

Source: 17 SDR 141, effective March 25, 1991; 23 SDR 179, effective April 29, 1997; 25 SDR 95, effective January 20, 1999; 45 SDR 31, effective September 13, 2018; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-30.
Law Implemented: SDCL 1-53-24, 1-53-29.

ARSD 12:07:12:07 Impermissible uses of loan proceeds

The loan proceeds may not be used for the following purposes;

(1) Purchase, construction, or renovation of a personal dwelling;

(2) Establishment of or participation in a line of credit;

(3) Paying off a creditor in excess value of the collateral;

(4) Farm machinery, except as needed for the project;

(5) Refinancing preexisting and carry-over debt except as provided by this chapter, making past-due payments on land or equipment, paying delinquent taxes, or paying interest on outstanding debt; and

(6) Start-up costs, inventory, and working capital.

History

Source: 17 SDR 141, effective March 25, 1991; 25 SDR 95, effective January 20, 1999; 45 SDR 31, effective September 13, 2018; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-30.
Law Implemented: SDCL 1-53-24, 1-53-29.

ARSD 12:07:12:08 Equity contribution

An applicant must provide a minimum equity contribution of 20 percent of the total project costs. In-kind contributions, completed work, and unencumbered tangible security may be applied toward the equity contribution and total project costs if, in the judgment of the office and the lender, such contributions sufficiently contribute to the current project.

History

Source: 17 SDR 141, effective March 25, 1991; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-30.
Law Implemented: SDCL 1-53-24, 1-53-29.

ARSD 12:07:12:09 Contents of application

The application form provided by the office shall include the following information:

(1) The name, age, and contact information of the applicant;

(2) The total project costs and the amount or value of the equity contribution;

(3) The requested amount of the loan and other funding sources for the project;

(4) The purpose of the project and background information of the applicant;

(5) A financial statement or balance sheet less than three months old;

(6) The applicant's tax returns from the previous two years, including forms 1040 and 1040F;

(7) The applicant's signature and date of the signature; and

(8) Additional documentation, if applicable, including the following information:

(a) A business plan;

(b) An environmental or engineering plan, or both;

(d) If applying for a bridge loan, lender or USDA approval letter;

(e) If applying for a direct loan, a denial letter from a lender.

History

Source: 17 SDR 141, effective March 25, 1991; 25 SDR 95, effective January 20, 1999; 29 SDR 34, effective September 18, 2002; 38 SDR 45, effective September 22, 2011; 45 SDR 31, effective September 13, 2018; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-30.
Law Implemented: SDCL 1-53-24, 1-53-29.

ARSD 12:07:12:10 Application process

The application process for loans under this chapter is as follows:

(1) The applicant shall apply to an eligible lender for a participation loan for the project;

(2) The applicant must use the application form provided by the office. The lender may require the applicant to use the lender's application form in addition;

(3) The applicant shall provide any necessary additional office application documentation as mutually agreed upon and requested by the lender and the administrator;

(4) The lender shall submit the application form and required application documentation to the office;

(5) If applying for a direct or bridge loan, the documentation and application will be submitted by the applicant directly to the office.

History

Source: 17 SDR 141, effective March 25, 1991; 38 SDR 45, effective September 22, 2011; 45 SDR 31, effective September 13, 2018; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-30.
Law Implemented: SDCL 1-53-24, 1-53-29.

ARSD 12:07:12:11 Review committee established -- Duties

The commissioner shall appoint a committee to review loan applications and assist in determining interest rate changes.

History

Source: 17 SDR 141, effective March 25, 1991; 29 SDR 34, effective September 18, 2002; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-30.
Law Implemented: SDCL 1-53-24, 1-53-29.

ARSD 12:07:12:12 Review committee meetings

The review committee shall meet as necessary to review loan applications.

History

Source: 17 SDR 141, effective March 25, 1991; 45 SDR 31, effective September 13, 2018; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-30.
Law Implemented: SDCL 1-53-24, 1-53-29.

ARSD 12:07:12:13 Loan decision process

The commissioner, in accordance with SDCL chapter 1-53, and the provisions of this chapter, must approve all loan applications. The commissioner shall base the decision on the following actions:

(1) The administrator shall review the application and the lender's recommendations, if applicable, based on the following criteria:

(a) The applicant and lender, if applicable, meet the requirements contained in this chapter;

(b) The project meets the requirements contained in this chapter;

(d) Availability of funds in the Rural Rehabilitation fund;

(2) The administrator shall review the application and submit a recommendation to the review committee;

(3) The review committee shall consider the application using the following criteria:

(a) The criteria given in subdivisions (1)(a) and (1)(b) of this section;

(b) The character, experience, management record, and background of the applicant;

(c) The net economic effect or stabilization of the project on the applicant's operation, the community, the area, and the state;

(d) The project's compliance with all local, state, and federal statutes and applicable regulations;

(e) The support of the community and the area;

(f) The competitive effect of the project on existing area businesses;

(g) The effect of the project on the environment, health, and safety of the people in the community and the state;

(h) The ability of the applicant to service the debt from the cash flow of operations, capital, or collateral;

(4) The review committee and the commissioner shall make one of the following decisions:

(a) Approve as presented;

(b) Conditionally approve subject to modifications or performance of certain actions; or

History

Source: 17 SDR 141, effective March 25, 1991; 38 SDR 45, effective September 22, 2011; 45 SDR 31, effective September 13, 2018; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-30.
Law Implemented: SDCL 1-53-24, 1-53-29.

ARSD 12:07:12:14 Loan decision

The commissioner shall notify the applicant and the lender, if applicable, of the decision in writing within 30 days after the date the office received the application. If the decision is to deny the application, the reasons for the decision shall be included in the notification. If the approval is conditional, the recommended modifications shall be included in the notification.

History

Source: 17 SDR 141, effective March 25, 1991; 29 SDR 34, effective September 18, 2002; 45 SDR 31, effective September 13, 2018; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-30.
Law Implemented: SDCL 1-53-24, 1-53-29.

ARSD 12:07:12:15 Participation process

Once the commissioner has approved the application for participation by the office, the office shall proceed as follows:

(1) The office shall issue a commitment to participate advising the lender that the material submitted is approved subject to the completion of all conditions and requirements set forth in the commitment to participate;

(2) Concurrent with the loan closing or shortly thereafter, the office and the lender shall execute a participation certificate and agreement. The participation certificate and agreement shall include:

(a) The terms of the participation;

(b) The terms for the collection of the proceeds and expenses;

(d) The responsibilities of all parties;

(3) The office shall issue a warrant to the lender in the amount of the office's portion of participation. If the construction or inception will cover more than four months, the office may issue a series of warrants totaling the amount scheduled in the participation agreement.

History

Source: 17 SDR 141, effective March 25, 1991; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-30.
Law Implemented: SDCL 1-53-24, 1-53-29.

ARSD 12:07:12:15.01 Bridge or direct loan process

Bridge** or direct loan process. Once the commissioner has approved the application, the office shall proceed as follows:

(1) The office shall issue an approval letter to the applicant with any conditions or requirements that must be met before closing the loan;

(2) Loan documentation between the office and the borrower must be executed. The loan documentation must contain the rights and responsibilities of the parties and the terms and conditions of the loan. Any requirements for loan security shall be included in the loan documents and all fees are the responsibility of the borrower. Loans must be secured with appropriate collateral;

(3) If a bridge loan is approved, an approval letter shall be sent to the lender or USDA.

History

Source: 38 SDR 45, effective September 22, 2011; 45 SDR 31, effective September 13, 2018; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-30.
Law Implemented: SDCL 1-53-24, 1-53-29.

ARSD 12:07:12:16 Loan participation amount

With a loan guarantee by a federal agency, the loan participation may not exceed $700,000. The loan participation with a lender for a loan to an individual may be for up to 80 percent of the loan amount or up to the percentage of the guaranty by a federal agency, whichever is the larger percentage. A loan participation with a lender for a loan to a corporation, cooperative, or other entity may be for up to 80 percent of the loan or for up to the percentage of the loan for which there is a federal guarantee times the percentage of eligible farmers in the entity.

With no loan guarantee by a federal agency, the loan participation may not exceed $500,000. The loan participation with a lender for a loan to an individual may be for up to 80 percent of the loan amount. A loan participation with a lender for a loan to a corporation, cooperative, or other entity may be for up to 80 percent of the loan amount times the percentage of eligible farmers in the entity.

History

Source: 17 SDR 141, effective March 25, 1991; 38 SDR 45, effective September 22, 2011; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-30.
Law Implemented: SDCL 1-53-24, 1-53-29.

ARSD 12:07:12:16.01 Bridge or direct loan amount

Bridge** or direct loan amount. Bridge loans or direct loans may not exceed $500,000.

History

Source: 38 SDR 45, effective September 22, 2011; 45 SDR 31, effective September 13, 2018; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-30.
Law Implemented: SDCL 1-53-24, 1-53-29.

ARSD 12:07:12:17 Loan repayments and maturities

Loan maturities and repayment schedules shall be based on the project purpose and depreciable life of the security, but may not exceed a total of ten years. Direct loans may have a longer maturity. There is no prepayment penalty.

History

Source: 17 SDR 141, effective March 25, 1991; 45 SDR 31, effective September 13, 2018; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-30.
Law Implemented: SDCL 1-53-24, 1-53-29.

ARSD 12:07:12:18 Interest rates

The interest rate initially established shall remain constant during the existence of the loan unless otherwise provided in the loan documentation. The standard interest rate will be established by the commissioner at least once annually and shall be based on current market rates. Loans may deviate from the standard rate based on collateral, risk, economic conditions and other prudent lending practices. Applicants meeting the definition of a small or beginning farmer may receive lower than the standard rate.

History

Source: 17 SDR 141, effective March 25, 1991; 19 SDR 93, effective January 1, 1993; 38 SDR 45, effective September 22, 2011; 45 SDR 31, effective September 13, 2018; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-30.
Law Implemented: SDCL 1-53-24, 1-53-29.

ARSD 12:07:12:19 Interest rate determination

Except as stated in § 12:07:12:18, the commissioner may change the rate of interest per annum according to the following procedure:

(1) The commissioner shall request recommendations for an interest rate from the review committee and the administrator;

(2) The commissioner shall request information on current market rates;

(3) Within five working days, the commissioner shall set the standard interest rate.

History

Source: 17 SDR 141, effective March 25, 1991; 45 SDR 31, effective September 13, 2018; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-30.
Law Implemented: SDCL 1-53-24, 1-53-29.

ARSD 12:07:12:20 Subsequent loan requests

Loan recipients may apply for subsequent loans. Subsequent loans include additional loans, loan renewals, and loan extensions. Approval of subsequent loans is subject to the following:

(1) Sections 12:07:12:02 to 12:07:12:19, inclusive, of this chapter;

(2) A review of existing loan status and performance, including the provisions found in § 12:07:12:22 of this chapter;

(3) If the subsequent request is with the same lender, the office and the lender may mutually agree to add an amendment to an existing participation certificate and agreement or to include a reference to any existing participation certificate and agreement in a new participation certificate and agreement; and

(4) If the subsequent request is with another lender, any lender with whom another participation and agreement under this program exists with this application must be notified by the office within 10 days of receiving the application.

History

Source: 17 SDR 141, effective March 25, 1991; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-30.
Law Implemented: SDCL 1-53-24, 1-53-29.

ARSD 12:07:12:21 Lender's responsibilities for a participation loan

During the application process, the lender shall ensure that the loan proposal receives the same degree of analysis as any other loan proposal. Upon approval of loan participation by the secretary, the lender shall:

(1) Execute the initial loan and disburse the proceeds;

(2) Execute and retain the loan documentation and furnish a copy of the loan documentation to the office;

(3) Obtain and maintain documentation necessary for the perfection of a security interest and furnish copies to the office;

(4) Serve as the point of contact for the administration of the loan and the participation and apprise the office of the loan status; and

(5) Service and manage the loan and the participation in accordance with its usual practices and exercise the same degree of care as it does with other loans. The lender may request loan servicing assistance from the office.

History

Source: 17 SDR 141, effective March 25, 1991; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-30.
Law Implemented: SDCL 1-53-24, 1-53-29.

ARSD 12:07:12:22 Borrower's responsibilities

Borrowers are responsible for the following actions:

(1) Paying all fees incurred;

(2) Identifying collateral;

(3) Maintaining accounting records and management reports;

(4) Submitting accounting records and management reports to the lender and the office upon request; and

(5) Abiding by the terms and conditions as set forth in the loan documentation.

History

Source: 17 SDR 141, effective March 25, 1991; 45 SDR 31, effective September 13, 2018; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-30.
Law Implemented: SDCL 1-53-24, 1-53-29.

Chapter 12:07:13 Livestock loan participation, Repealed

ARSD 12:07:13:01 Repealed

Definitions.** Repealed.

History

Source: 17 SDR 141, effective March 25, 1991; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:13:02 Repealed

Purpose.** Repealed.

History

Source: 17 SDR 141, effective March 25, 1991; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:13:03 Repealed

Eligibility requirements for applicants.** Repealed.

History

Source: 17 SDR 141, effective March 25, 1991; 28 SDR 119, effective March 5, 2002; 29 SDR 34, effective September 18, 2002; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:13:04 Repealed

Eligibility requirements for lenders.** Repealed.

History

Source: 17 SDR 141, effective March 25, 1991; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:13:05 Repealed

Contents of application.** Repealed.

History

Source: 17 SDR 141, effective March 25, 1991; 29 SDR 34, effective September 18, 2002; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:13:06 Repealed

Application process.** Repealed.

History

Source: 17 SDR 141, effective March 25, 1991; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:13:07 Repealed

Loan decision process.** Repealed.

History

Source: 17 SDR 141, effective March 25, 1991; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:13:08 Repealed

Loan decision.** Repealed.

History

Source: 17 SDR 141, effective March 25, 1991; 29 SDR 34, effective September 18, 2002; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:13:09 Repealed

Participation process.** Repealed.

History

Source: 17 SDR 141, effective March 25, 1991; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:13:10 Repealed

Loan amount and participation limits.** Repealed.

History

Source: 17 SDR 141, effective March 25, 1991; 20 SDR 196, effective May 30, 1994; 26 SDR 13, effective August 8, 1999; 38 SDR 45, effective September 22, 2011; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:13:11 Repealed

Loan proceeds.** Repealed.

History

Source: 17 SDR 141, effective March 25, 1991; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:13:12 Repealed

Loan repayments and maturities.** Repealed.

History

Source: 17 SDR 141, effective March 25, 1991; 38 SDR 45, effective September 22, 2011; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:13:13 Repealed

Interest rates.** Repealed.

History

Source: 17 SDR 141, effective March 25, 1991; 19 SDR 93, effective January 1, 1993; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:13:14 Repealed

Subsequent loan requests.** Repealed.

History

Source: 17 SDR 141, effective March 25, 1991; 26 SDR 13, effective August 8, 1999; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:13:15 Repealed

Number of loan participations allowed.** Repealed.

History

Source: 17 SDR 141, effective March 25, 1991; 26 SDR 13, effective August 8, 1999; 38 SDR 45, effective September 22, 2011; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:13:16 Repealed

Lender's responsibilities.** Repealed.

History

Source: 17 SDR 141, effective March 25, 1991; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:13:17 Repealed

Borrowers' responsibilities.** Repealed.

History

Source: 17 SDR 141, effective March 25, 1991; 45 SDR 31, effective September 13, 2018.

Chapter 12:07:14 Value adding livestock underwriting

ARSD 12:07:14:01 Definitions

Terms used in this chapter mean:

(1) "VALU," the value adding livestock underwriting program;

(2) "Lender," a federal or state-chartered bank, federal farm credit system, savings and loan association, building and loan association, mortgage company that is a part of a bank holding company, credit union, or an insurance company that is regulated by the National Association of Insurance Commissioners; and

(3) "Guaranty," an agreement between the Governor's Office of Economic Development and the lender by which the Governor's Office of Economic Development agrees to be responsible for a percentage of the borrower's default.

History

Source: 17 SDR 141, effective March 25, 1991; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-30.
Law Implemented: SDCL 1-53-24, 1-53-29.

ARSD 12:07:14:02 Purpose

The VALU program is designed to enable farmers of limited equity to procure livestock loans and to utilize their available feed, facilities, labor, and management skills.

History

Source: 17 SDR 141, effective March 25, 1991; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-30.
Law Implemented: SDCL 1-53-24, 1-53-29.

ARSD 12:07:14:03 Eligibility requirements for applicants

To be eligible for a VALU loan, an applicant must meet the following requirements:

(1) If the applicant is an individual, the applicant must meet the following requirements:

(a) Be a resident of this state at the time of loan closing;

(b) Have his principal residence and the majority of the farm operation located in South Dakota;

(d) Have feed sufficient for one year, have facilities available, and have management capabilities;

(e) Have derived at least 60 percent of all gross income in the last tax year from farming. Applications not meeting this qualification may be accepted only if a waiver is obtained from the commissioner. The commissioner may issue a waiver for extraordinary circumstances such as illness or enrollment in a higher education institution or postsecondary technical institute or vocational school;

(f) Be creditworthy according to the standards of the lender; and

(g) Be unable to provide the financing needed from the applicant's own resources or to obtain it from conventional sources at rates and terms the applicant can reasonably be expected to meet;

(2) If the applicant is a cooperative, corporation, partnership, or other legal entity, it must meet the following requirements;

(a) Be composed of individuals who meet the criteria of subdivisions (1)(a) to (1)(g), inclusive, of this section and who must be willing to subordinate or waive individual interest in the required feed, facilities, and labor necessary for the success of the loan; or

(b) Have the majority of memberships and stock in the entity owned by farmers who meet the criteria of subdivisions (1)(a) to (1)(h), inclusive, of this section with other members or stockholders furnishing their proportionate share of the costs. They must be willing to subordinate or waive individual interest in the required feed, facilities, and labor necessary for the success of the loan;

(3) Coapplicants must meet the same criteria as the applicants in the applicable category.

History

Source: 17 SDR 141, effective March 25, 1991; 28 SDR 119, effective March 5, 2002; 29 SDR 34, effective September 18, 2002; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-30.
Law Implemented: SDCL 1-53-24, 1-53-29.

ARSD 12:07:14:04 Eligibility requirements for lenders

To be eligible to participate in the program, a lender must meet the following minimum requirements:

(1) Make loans in or near the region or community where the financed project will be located;

(2) Have experience in making livestock loans; and

(3) Be subject to credit examination and supervision by an agency of the United States or this state.

History

Source: 17 SDR 141, effective March 25, 1991; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-30.
Law Implemented: SDCL 1-53-24, 1-53-29.

ARSD 12:07:14:05 Contents of application

The VALU loan application form shall include the following:

(1) The requested amount of the loan and guaranty;

(2) The purpose;

(3) Additional documentation, including the following information:

(a) A cash flow budget;

(b) A signed financial statement completed no more than 30 days prior to application;

(d) Tax forms for the two most recent years, including 1040 and 1040F, if applicable;

(4) The lender's signature and the date of signature;

(5) The applicant's signature and the date of signature.

History

Source: 17 SDR 141, effective March 25, 1991; 29 SDR 34, effective September 18, 2002; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-30.
Law Implemented: SDCL 1-53-24, 1-53-29.

ARSD 12:07:14:06 Application process

The VALU loan application process is as follows:

(1) The applicant shall apply to an eligible lender;

(2) The applicant must use the application form provided by the office;

(3) The applicant shall provide the necessary loan documentation as mutually agreed to and requested by the lender and the administrator;

(4) The lender shall submit the application and loan documentation to the office.

History

Source: 17 SDR 141, effective March 25, 1991; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-30.
Law Implemented: SDCL 1-53-24, 1-53-29.

ARSD 12:07:14:07 Guaranty decision process

Upon receipt of the application and loan documentation, the administrator shall take the following action:

(1) Review the application and application documentation for completeness and for project feasibility;

(2) Base actions on the following criteria:

(a) The application meets the requirements contained in this chapter;

(b) The applicant meets the requirements contained in this chapter;

(3) Recommend approval of the application as presented, conditional approval of the application subject to modification or performance of certain actions, or disapproval of the application and submit the application to the secretary.

History

Source: 17 SDR 141, effective March 25, 1991; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-30.
Law Implemented: SDCL 1-53-24, 1-53-29.

ARSD 12:07:14:08 Guaranty decision

After review the commissioner may approve the application for the loan guaranty, approve the application subject to certain terms and conditions, or disapprove the application. The commissioner or the commissioner's designee shall notify the applicant of the decision in writing within 30 days after the date of receipt of the application. If the decision is to disapprove the application for guaranty, the reasons for the decision shall be included in the notification. The commissioner's decision is final.

History

Source: 17 SDR 141, effective March 25, 1991; 29 SDR 34, effective September 18, 2002; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-30.
Law Implemented: SDCL 1-53-24, 1-53-29.

ARSD 12:07:14:09 Guaranty amount

The guaranty amount may not exceed 50 percent of the original principal amount of the executed note or $100,000, whichever is less, and shall be reduced on a pro rata basis as the remaining principal balance is reduced. Accordingly, the maximum amount that may be paid is 50 percent of the outstanding principal amount at the time of default.

History

Source: 17 SDR 141, effective March 25, 1991; 20 SDR 196, effective May 30, 1994; 29 SDR 34, effective September 18, 2002; 38 SDR 45, effective September 22, 2011; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-30.
Law Implemented: SDCL 1-53-24, 1-53-29.

ARSD 12:07:14:10 Conditional approval of the guaranty

If the commissioner approves the application for guaranty, wholly or subject to conditions, the office shall issue a conditional approval of guaranty. The conditional approval shall stipulate any conditions that must be met before a final guaranty is put into place, including the maximum amount of the guaranty and the maximum time allowed for purchase of the livestock.

History

Source: 17 SDR 141, effective March 25, 1991; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-30.
Law Implemented: SDCL 1-53-24, 1-53-29.

ARSD 12:07:14:11 Loan proceeds

The proceeds of the loan to be guaranteed may be used only for the purchase of livestock. The borrower shall have a maximum of 60 days from the date of the conditional approval of the guaranty to purchase the livestock.

History

Source: 17 SDR 141, effective March 25, 1991; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-30.
Law Implemented: SDCL 1-53-24, 1-53-29.

ARSD 12:07:14:12 Maximum term of the guaranty

Loan maturities and repayment schedules shall be based upon the purpose and type of livestock to be purchased, but the guaranty on a loan may not exceed 26 months from the loan inception date.

History

Source: 17 SDR 141, effective March 25, 1991; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-30.
Law Implemented: SDCL 1-53-24, 1-53-29.

ARSD 12:07:14:13 Certificate of guaranty

Within 10 days of receiving the loan documentation, the office shall issue the guaranty for an amount not to exceed 50 percent of the proceeds spent for the purchase of the livestock or $100,000, whichever is less.

History

Source: 17 SDR 141, effective March 25, 1991; 29 SDR 34, effective September 18, 2002; 38 SDR 45, effective September 22, 2011; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-30.
Law Implemented: SDCL 1-53-24, 1-53-29.

ARSD 12:07:14:14 Interest rates

The loan interest rate cannot exceed the lender's lowest interest rate for loans for the type of livestock to be purchased with the proceeds of the loan.

History

Source: 17 SDR 141, effective March 25, 1991; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-30.
Law Implemented: SDCL 1-53-24, 1-53-29.

ARSD 12:07:14:15 Number of guaranties allowed

A borrower may not have more than one outstanding VALU guaranty at any one time. Only one VALU guaranty may be issued for each household. If a borrower is an entity as described in subdivision 12:07:13:03(2), individual members of the entity who meet the requirements of subdivision 12:07:14:03(1) and other provisions of this chapter may apply for a separate VALU guaranty.

History

Source: 17 SDR 141, effective March 25, 1991; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-30.
Law Implemented: SDCL 1-53-24, 1-53-29.

ARSD 12:07:14:16 Lender's responsibilities

During the application process, the lender shall ensure that the loan proposal receives the same degree of analysis as any other loan proposal. Upon approval of the guaranty, the lender shall do the following:

(1) Execute the initial loan and disburse the proceeds;

(2) Execute and retain the loan documentation and furnish a copy of the loan documentation to the office;

(3) Obtain and maintain documentation necessary for the perfection of a security interest and furnish copies to the office;

(4) Serve as the point of contact for the administration of the loan and apprise the office of the loan status; and

(5) Service and manage the loan in accordance with its usual practices and exercise the same degree of care as it does with unguaranteed loans.

History

Source: 17 SDR 141, effective March 25, 1991; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-30.
Law Implemented: SDCL 1-53-24, 1-53-29.

ARSD 12:07:14:17 Borrower's responsibilities

Borrowers are responsible for the following:

(1) Identifying collateral;

(2) Maintaining accounting records and management reports; and

(3) Submitting accounting records and management reports to the lender and administrator upon request.

History

Source: 17 SDR 141, effective March 25, 1991; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-30.
Law Implemented: SDCL 1-53-24, 1-53-29.

ARSD 12:07:14:18 Office's responsibilities

The office responsibilities upon receipt of the application are to record the date of receipt, to have the administrator review the application within the prescribed time, and to send the proper notification of the decision and forms to the lender. If the guaranty is approved, upon receipt and review of the loan documentation, a signed certificate of guaranty is sent to the lender indicating that the guaranty is in place for the established dollar amount.

History

Source: 17 SDR 141, effective March 25, 1991; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-30.
Law Implemented: SDCL 1-53-24, 1-53-29.

ARSD 12:07:14:19 Reserve fund

The Governor's Office of Economic Development shall establish a pooled reserve fund for guarantee programs administered by the Governor's Office of Economic Development. Ten percent of each VALU Guaranty made will be deposited into the pooled reserve fund. Interest income shall be maintained in the pooled fund. At a minimum, an amount equal to this deposit (combined with the deposits required by each guarantee program administered by the Governor's Office of Economic Development) shall be maintained in the reserve fund at all times. If the total maintained in this pooled reserve fund exceeds the minimum required and such additional amounts would not be required for payment on pending defaults, funds may be transferred to other funds or accounts. The VALU Guaranty constitutes a limited obligation of the Governor's Office of Economic Development, and is payable only from the pooled reserve fund and is not payable out of other revenues or property of the Governor's Office of Economic Development or any other funds of the State of South Dakota.

History

Source: 29 SDR 34, effective September 18, 2002; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-30.
Law Implemented: SDCL 1-53-24, 1-53-29.

Chapter 12:07:15 Computer purchase underwriting, Repealed

ARSD 12:07:15 Repealed chapter

CHAPTER 12:07:15

COMPUTER PURCHASE UNDERWRITING LOANS

(Repealed. 23 SDR 179, effective April 29, 1997)

Chapter 12:07:16 Agriculture finance counseling, Repealed

ARSD 12:07:16:01 Repealed

12:07:16 :01. Definitions. Repealed

History

Source: 17 SDR 141, effective March 25, 1991; repealed SL 2015, ch 204, §§ 36 and 37, effective July 1, 2015.

ARSD 12:07:16:02 Repealed

Purpose.** Repealed.

History

Source: 17 SDR 141, effective March 25, 1991; repealed, SL 2015, ch 204, § 36, effective July 1, 2015.

ARSD 12:07:16:03 Repealed

12:07:16 :03. Contracting of agriculture finance counselors. Repealed.

History

Source: 17 SDR 141, effective March 25, 1991; repealed, SL 2015, ch 204, § 37, effective July 1, 2015.

ARSD 12:07:16:04 Repealed

12:07:16 :04. Eligibility for services. Repealed.

History

Source: 17 SDR 141, effective March 25, 1991; repealed, SL 2015, ch 204, § 37, effective July 1, 2015.

ARSD 12:07:16:05 Repealed

12:07:16 :05. Counseling fees. Repealed.

History

Source: 17 SDR 141, effective March 25, 1991; repealed, SL 2015, ch 204, § 37, effective July 1, 2015.

ARSD 12:07:16:06 Repealed

12:07:16 :06. Provision of service. Repealed.

History

Source: 17 SDR 141, effective March 25, 1991; repealed, SL 2015, ch 204, § 37, effective July 1, 2015.

Chapter 12:07:17 Beginning farmer down payment guaranty program, Repealed

ARSD 12:07:17:01 Repealed

Definitions.** Repealed.

History

Source: 19 SDR 93, effective January 1, 1993; 38 SDR 45, effective September 22, 2011; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:17:02 Repealed

Purpose.** Repealed.

History

Source: 19 SDR 93, effective January 1, 1993; 38 SDR 45, effective September 22, 2011; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:17:03 Repealed

Eligibility requirements for applicants.** Repealed.

History

Source: 19 SDR 93, effective January 1, 1993; 38 SDR 45, effective September 22, 2011; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:17:04 Repealed

Eligibility requirements for lenders.** Repealed.

History

Source: 19 SDR 93, effective January 1, 1993; 38 SDR 45, effective September 22, 2011; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:17:05 Repealed

Contents of application.** Repealed.

History

Source: 19 SDR 93, effective January 1, 1993; 38 SDR 45, effective September 22, 2011; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:17:06 Repealed

Application process.** Repealed.

History

Source: 19 SDR 93, effective January 1, 1993; 38 SDR 45, effective September 22, 2011; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:17:07 Repealed

Guaranty decision process.** Repealed.

History

Source: 19 SDR 93, effective January 1, 1993; 38 SDR 45, effective September 22, 2011; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:17:08 Repealed

Guaranty decision.** Repealed.

History

Source: 19 SDR 93, effective January 1, 1993; 29 SDR 34, effective September 18, 2002; 38 SDR 45, effective September 22, 2011; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:17:09 Repealed

Bond and guaranty limits.** Repealed.

History

Source: 19 SDR 93, effective January 1, 1993; 20 SDR 66, effective November 8, 1993; 29 SDR 34, effective September 18, 2002; 38 SDR 45, effective September 22, 2011; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:17:10 Repealed

Down payment guarantee expiration.** Repealed.

History

Source: 19 SDR 93, effective January 1, 1993; 20 SDR 66, effective November 8, 1993; 38 SDR 45, effective September 22, 2011; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:17:11 Repealed

Conditional approval of guaranty.** Repealed.

History

Source: 19 SDR 93, effective January 1, 1993; 38 SDR 45, effective September 22, 2011; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:17:12 Repealed

Loan proceeds.** Repealed.

History

Source: 19 SDR 93, effective January 1, 1993; 38 SDR 45, effective September 22, 2011; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:17:13 Repealed

Maximum term of guaranty.** Repealed.

History

Source: 19 SDR 93, effective January 1, 1993; 38 SDR 45, effective September 22, 2011; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:17:14 Repealed

Certificate of guaranty.** Repealed.

History

Source: 19 SDR 93, effective January 1, 1993; 29 SDR 34, effective September 18, 2002; 38 SDR 45, effective September 22, 2011; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:17:15 Repealed

Interest rates.** Repealed.

History

Source: 19 SDR 93, effective January 1, 1993; 38 SDR 45, effective September 22, 2011; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:17:16 Repealed

Number of guaranties allowed.** Repealed.

History

Source: 19 SDR 93, effective January 1, 1993; 38 SDR 45, effective September 22, 2011; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:17:17 Repealed

Lender's responsibilities.** Repealed.

History

Source: 19 SDR 93, effective January 1, 1993; 38 SDR 45, effective September 22, 2011; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:17:18 Repealed

Borrower's responsibilities.** Repealed.

History

Source: 19 SDR 93, effective January 1, 1993; 38 SDR 45, effective September 22, 2011; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:17:19 Repealed

Office's responsibilities.** Repealed.

History

Source: 19 SDR 93, effective January 1, 1993; 38 SDR 45, effective September 22, 2011; 45 SDR 31, effective September 13, 2018.

ARSD 12:07:17:20 Repealed

Reserve fund.** Repealed.

History

Source: 29 SDR 34, effective September 18, 2002; 38 SDR 45, effective September 22, 2011; 45 SDR 31, effective September 13, 2018.

Chapter 12:07:18 Farm link program

ARSD 12:07:18:01 Definitions

Terms used in this chapter mean:

(1) "Administrator," the administrator of the agriculture enterprise program;

(2) "Directory," the directory of the farm link participants;

(3) "Office," the agricultural enterprise program, Governor's Office of Economic Development; and

(4) "Participant," a farmer or rancher who participates in the farm link program.

History

Source: 20 SDR 66, effective November 8, 1993; 38 SDR 45, effective September 22, 2011; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-22.
Law Implemented: SDCL 1-53-21, 1-53-22.

ARSD 12:07:18:02 Eligibility requirements

To be eligible for the farm link program, an applicant must meet the following requirements:

(1) Seller: Be a current owner of a farm or ranch and be willing to sell an existing operation;

(2) Beginning farmer: Be a prospective beginning farmer or rancher who is willing to purchase a farm or ranch and who will materially and substantially participate in the operation of the farm or ranch and will become the primary owner and operator of a farm or ranch as a means of livelihood.

History

Source: 20 SDR 66, effective November 8, 1993; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-22.
Law Implemented: SDCL 1-53-21, 1-53-22.

ARSD 12:07:18:03 Program administration

The Governor's Office of Economic Development is responsible for computer input of questionnaires and for dissemination of program information to farm families.

History

Source: 20 SDR 66, effective November 8, 1993; 38 SDR 45, effective September 22, 2011; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-22.
Law Implemented: SDCL 1-53-21, 1-53-22.

ARSD 12:07:18:04 Farm questionnaire

A prospective participant must complete a farm questionnaire and return it to the office.

History

Source: 20 SDR 66, effective November 8, 1993; 38 SDR 45, effective September 22, 2011; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-22.
Law Implemented: SDCL 1-53-21, 1-53-22.

ARSD 12:07:18:05 Farmlink directory

The administrator shall input farm questionnaires into a data base and send the required information. Access to the farmlink directory by participants may be made at the Governor's Office of Economic Development.

History

Source: 20 SDR 66, effective November 8, 1993; 38 SDR 45, effective September 22, 2011; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.
General Authority: SDCL 1-53-22.
Law Implemented: SDCL 1-53-21, 1-53-22.

Chapter 12:07:19 Microbusiness loan program, Repealed

ARSD 12:07:19 Repealed chapter

CHAPTER 12:07:19

MICROBUSINESS LOAN PROGRAM

(Repealed. 23 SDR 179, effective April 29, 1997)

Chapter 12:07:20 Stock purchase guaranty program, Repealed

ARSD 12:07:20:01 Repealed

12:07:20 :01. Definitions. Repealed.

History

Source: 25 SDR 95, effective January 20, 1999; repealed, SL 2015, ch 204, § 39, effective July 1, 2015.

ARSD 12:07:20:02 Repealed

12:07:20 :02. Purpose. Repealed

History

Source: 25 SDR 95, effective January 20, 1999; repealed, SL 2015, ch 204, § 38, effective July 1, 2015.

ARSD 12:07:20:03 Repealed

12:07:20 :03. Eligibility requirements for producer-involved cooperative. Repealed.

History

Source: 25 SDR 95, effective January 20, 1999; repealed, SL 2015, ch 204, § 39, effective July 1, 2015.

ARSD 12:07:20:04 Repealed

12:07:20 :04. Eligibility requirements for applicants. Repealed.

History

Source: 25 SDR 95, effective January 20, 1999; 28 SDR 119, effective March 5, 2002; 29 SDR 34, effective September 18, 2002; repealed, SL 2015, ch 204, § 39, effective July 1, 2015.

ARSD 12:07:20:05 Repealed

Eligibility requirements for lenders.** Repealed.

History

Source: 25 SDR 95, effective January 20, 1999; repealed, SL 2015, ch 204, § 39, effective July 1, 2015.

ARSD 12:07:20:06 Repealed

12:07:20 :06. Contents of application. Repealed.

History

Source: 25 SDR 95, effective January 20, 1999; repealed, SL 2015, ch 204, § 39, effective July 1, 2015.

ARSD 12:07:20:07 Repealed

12:07:20 :07. Application process. Repealed.

History

Source: 25 SDR 95, effective January 20, 1999; repealed, SL 2015, ch 204, § 39, effective July 1, 2015.

ARSD 12:07:20:08 Repealed

12:07:20 :08. Guaranty decision process. Repealed.

History

Source: 25 SDR 95, effective January 20, 1999; repealed, SL 2015, ch 204, § 39, effective July 1, 2015.

ARSD 12:07:20:09 Repealed

12:07:20 :09. Guaranty decision. Repealed.

History

Source: 25 SDR 95, effective January 20, 1999; repealed, SL 2015, ch 204, § 39, effective July 1, 2015.

ARSD 12:07:20:10 Repealed

12:07:20 :10. Guaranty amount. Repealed.

History

Source: 25 SDR 95, effective January 20, 1999; 29 SDR 34, effective September 18, 2002; repealed, SL 2015, ch 204, § 39, effective July 1, 2015.

ARSD 12:07:20:11 Repealed

12:07:20 :11. Conditional approval of the guaranty. Repealed.

History

Source: 25 SDR 95, effective January 20, 1999; repealed, SL 2015, ch 204, § 39, effective July 1, 2015.

ARSD 12:07:20:12 Repealed

12:07:20 :12. Loan proceeds. Repealed.

History

Source: 25 SDR 95, effective January 20, 1999; repealed, SL 2015, ch 204, § 39, effective July 1, 2015.

ARSD 12:07:20:13 Repealed

12:07:20 :13. Maximum term of the guaranty. Repealed.

History

Source: 25 SDR 95, effective January 20, 1999; repealed, SL 2015, ch 204, § 39, effective July 1, 2015.

ARSD 12:07:20:14 Repealed

12:07:20 :14. Certificate of guaranty. Repealed.

History

Source: 25 SDR 95, effective January 20, 1999; 29 SDR 34, effective September 18, 2002; repealed, SL 2015, ch 204, § 39, effective July 1, 2015.

ARSD 12:07:20:15 Repealed

12:07:20 :15. Interest rates. Repealed.

History

Source: 25 SDR 95, effective January 20, 1999; repealed, SL 2015, ch 204, § 39, effective July 1, 2015.

ARSD 12:07:20:16 Repealed

12:07:20 :16. Number of guaranties allowed. Repealed.

History

Source: 25 SDR 95, effective January 20, 1999; 28 SDR 44, effective October 2, 2001; repealed, SL 2015, ch 204, § 39, effective July 1, 2015.

ARSD 12:07:20:17 Repealed

12:07:20 :17. Lender's responsibilities. Repealed.

History

Source: 25 SDR 95, effective January 20, 1999; repealed, SL 2015, ch 204, § 39, effective July 1, 2015.

ARSD 12:07:20:18 Repealed

Borrower's responsibilities.** Repealed.

History

Source: 25 SDR 95, effective January 20, 1999; repealed, SL 2015, ch 204, § 39, effective July 1, 2015.

ARSD 12:07:20:19 Repealed

12:07:20 :19. Department's responsibilities. Repealed.

History

Source: 25 SDR 95, effective January 20, 1999; repealed, SL 2015, ch 204, § 39, effective July 1, 2015.

ARSD 12:07:20:20 Repealed

12:07:20 :20. Reserve fund. Repealed.

History

Source: 29 SDR 34, effective September 18, 2002; repealed, SL 2015, ch 204, § 39, effective July 1, 2015.