Administrative Rules of Montana › Department 4 - AGRICULTURE › Chapter 4.14 - MONTANA AGRICULTURAL LOAN AUTHORITY › Subchapter 4.14.3 - Substantive Rules › Rule 4.14.301 - DEFINITIONS

Current through Register Vol. 13, July 5, 2024
When used in these rules, unless the context clearly requires
				  a different meaning:
(1) The "Act"
				means the Montana Agricultural Loan Authority Act, created by S.B. 316, (1983),
				and codified in Title 80, chapter 12, MCA.
(2) "Agricultural improvements" means any
				improvements, buildings, structure or fixtures suitable for use in
				farming/ranching which are located on agricultural land and may include an
				existing dwelling for residence.
(3) "Agricultural land", as defined in
				80-12-102,
				MCA, means land actively devoted to agricultural use as defined in
				15-7-202,
				MCA.
(4) "Application" means a
				completed instrument on a form approved by the authority. Each application must
				include the following: beginning farmer/rancher name, address, financial data,
				description of anticipated use of loan proceeds, amount of loan, cost or
				purchase price of the item financed (including the interest rate and collateral
				or other security required), statement of beginning farmer's/rancher's net
				worth determined in accordance with authority rules, a summary of proposed loan
				terms and certain certifications of the beginning farmer/rancher and financial
				institution.
(5) The "authority"
				means the department of agriculture provided for in
				2-15-3001,
				MCA.
(6) "Beginning farmer/rancher"
				means an individual who meets all qualifications required under
				80-12-203(1) and
				(2) ,MCA.
(7) The "department" means the Montana
				department of agriculture.
(8)
				"Depreciable agricultural property" means personal property suitable for use in
				farming/ranching for which an income tax deduction for depreciation is
				allowable in computing federal income tax and which is located on agricultural
				land.
(9) "Farming/ranching" means
				the cultivation of land for the production of agricultural crops, the raising
				of poultry, the production of eggs, the production of milk, the production of
				fruit or other horticultural crops, grazing or the production of livestock or
				the production of timber, or sod or other agricultural enterprises on
				agricultural land. Farming/ranching shall not include spraying, harvesting, or
				providing other farm/ranch services on contract.
(10) "Financial institution or bond
				purchaser" means any bank, bank holding company, trust company, mortgage
				company, national banking association, savings and loan association, credit
				union, life insurance company, any state or federal government agency or
				instrumentality, any other entity authorized to make mortgage loans or secured
				loans in this state or any person that obtains an authority bond under the
				program in connection with a contract sale or loan to a beginning
				farmer/rancher.
(11) "Loan
				agreement" means a loan agreement, financing agreement, installment purchase
				agreement or any other agreement entered into by the authority with the
				beginning farmer/rancher or financial institution in connection with the
				issuance of the authority's bond under this program.
(12) "Net worth" means total assets minus
				total liabilities as determined by the financial institution, in accordance
				with rules of the authority and generally accepted accounting
				procedures.
(13) "Total assets"
				means assets including, but not limited to the following: cash and deposits in
				financial institutions etc.; cash crops or feed on hand; livestock held for
				sale; breeding stock; marketable bonds and securities; securities (not readily
				marketable) ; accounts receivable; notes receivable; cash invested in growing
				crops; net cash value of life insurance; machinery and equipment, cars and
				trucks; farm and other real estate including life estates, personal residence
				and summer homes; value of beneficial interest in a trust, government payments
				or grants; any other assets.
(a) Total assets
				shall not include items used for personal, family or household purposes by the
				applicant, but in no event shall such property be excluded to the extent a
				deduction for depreciation is allowable for federal income tax purposes. All
				assets shall be valued at fair market value by the financial institution. Such
				value shall be what a willing buyer would pay a willing seller in the locality.
				A deduction of 10% may be made from fair market value of farm and other real
				estate.