reglab/statecodes huggingface dataset:
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:10 - Natural Resources Conservation Equipment loan Program › Section 12:07:10:07 - Loan proceeds

Current through Register Vol. 51, page 10, July 15, 2024
The district shall use the loan proceeds for the purchase of
	 equipment.
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:10 - Natural Resources Conservation Equipment loan Program › Section 12:07:10:08 - Loan amount

Current through Register Vol. 51, page 10, July 15, 2024
The maximum loan amount that can be borrowed by a district is
	 $30100,000. The loan amount may not exceed eighty percent of the purchase value
	 of the equipment.
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:10 - Natural Resources Conservation Equipment loan Program › Section 12:07:10:09 - Loan repayment

Current through Register Vol. 51, page 10, July 15, 2024
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.
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:10 - Natural Resources Conservation Equipment loan Program › Section 12:07:10:10 - Loan maturities

Current through Register Vol. 51, page 10, July 15, 2024
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.
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:10 - Natural Resources Conservation Equipment loan Program › Section 12:07:10:11 - Interest rates

Current through Register Vol. 51, page 10, July 15, 2024
If the federal discount rate of interest is seven percent or less, the
	 interest rate on a loan shall not be less than the federal discount rate plus
	 two percent per annum. If the federal discount rate of interest is greater than
	 seven percent per annum, the interest rate on the loan may exceed the federal
	 discount interest rate by no more than one-and-one-half percent per annum. The
	 rate on a loan made during one period of time may differ from rates on loans of
	 the same type made during another period of time. 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 federal discount rate
	 published in the Wall Street Journal on the date the loan is approved shall be
	 used for the purpose of determining the rate of interest to be
	 charged.
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:10 - Natural Resources Conservation Equipment loan Program › Section 12:07:10:12 - Subsequent loan requests

Current through Register Vol. 51, page 10, July 15, 2024
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.
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:10 - Natural Resources Conservation Equipment loan Program › Section 12:07:10:13 - Office's responsibilities

Current through Register Vol. 51, page 10, July 15, 2024
The office shall obtain and maintain the documentation of record
	 necessary for the perfection of a security interest.
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:10 - Natural Resources Conservation Equipment loan Program › Section 12:07:10:14 - Borrower's responsibilities

Current through Register Vol. 51, page 10, July 15, 2024
The borrower is responsible for the following:
(1) Identifying collateral by the following:
(a) Year;
(b) Type;
(c) Brand name;
(d) Model number; and
(e) Serial number;
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:12 - Rural development loans and participations › Section 12:07:12:01 - Definitions

Current through Register Vol. 51, page 10, July 15, 2024
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; South Dakota Department of
  Agriculture.
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:12 - Rural development loans and participations › Section 12:07:12:02 - Purpose

Current through Register Vol. 51, page 10, July 15, 2024
The office shall participate in or make rural development loans for
	 projects which engage in production, processing, marketing, or exporting of
	 agricultural products.
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:12 - Rural development loans and participations › Section 12:07:12:03 - Eligibility requirements for applicant

Current through Register Vol. 51, page 10, July 15, 2024
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;
(c) Be age 18 or
  older;
(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;
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:12 - Rural development loans and participations › Section 12:07:12:04 - Eligibility requirements for lender

Current through Register Vol. 51, page 10, July 15, 2024
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.
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:12 - Rural development loans and participations › Section 12:07:12:05 - Eligibility requirements for project

Current through Register Vol. 51, page 10, July 15, 2024
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 states
(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.
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:12 - Rural development loans and participations › Section 12:07:12:06 - Permissible uses of loan proceeds

Current through Register Vol. 51, page 10, July 15, 2024
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.
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:12 - Rural development loans and participations › Section 12:07:12:07 - Impermissible uses of loan proceeds

Current through Register Vol. 51, page 10, July 15, 2024
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.
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:12 - Rural development loans and participations › Section 12:07:12:08 - Equity contribution

Current through Register Vol. 51, page 10, July 15, 2024
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.
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:12 - Rural development loans and participations › Section 12:07:12:09 - Contents of application

Current through Register Vol. 51, page 10, July 15, 2024
The application form provided by the office shall include but is not
	 limited to 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;
  and
(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;
(8) Additional
  documentation, if applicable, including the following information:
(a) A business plan
(b) An environmental or engineering plan, or
  both;
(c) A W-9 form completed by
  the lender;
(d) If applying for a
  bridge loan. Lender or USDA approval letter;
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:12 - Rural development loans and participations › Section 12:07:12:10 - Application process

Current through Register Vol. 51, page 10, July 15, 2024
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.
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:12 - Rural development loans and participations › Section 12:07:12:11 - Review committee established - Duties

Current through Register Vol. 51, page 10, July 15, 2024
The secretary shall appoint a committee to review loan applications and
	 assist in determining interest rate changes.
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:12 - Rural development loans and participations › Section 12:07:12:12 - Review committee meetings

Current through Register Vol. 51, page 10, July 15, 2024
The review committee shall meet as necessary to review loan
	 applications.
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:12 - Rural development loans and participations › Section 12:07:12:13 - Loan decision process

Current through Register Vol. 51, page 10, July 15, 2024
The secretary, in accordance with SDCL chapter 38-6, and the
	 provisions of this chapter, must approve all loan the applications. The
	 secretary 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;
(c) The application and the loan are
  consistent with the purposes of this chapter; and
(d) Availability of funds in the Rural
  Rehabilitation fund;
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:12 - Rural development loans and participations › Section 12:07:12:14 - Loan decision

Current through Register Vol. 51, page 10, July 15, 2024
The secretary or the secretary's designee 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.
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:12 - Rural development loans and participations › Section 12:07:12:15 - Participation process

Current through Register Vol. 51, page 10, July 15, 2024
Once the secretary 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;
(c) The
  servicing fees; and
(d) The
  responsibilities of all parties;
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:12 - Rural development loans and participations › Section 12:07:12:15.01 - Bridge or Direct loan process

Current through Register Vol. 51, page 10, July 15, 2024
Once the secretary 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 was approved, an approval letter will also be sent to the Lender or
  USDA.
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:12 - Rural development loans and participations › Section 12:07:12:16 - Loan participation amount

Current through Register Vol. 51, page 10, July 15, 2024
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.
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:12 - Rural development loans and participations › Section 12:07:12:16.01 - Bridge or Direct loan amount

Current through Register Vol. 51, page 10, July 15, 2024
Bridge loans or direct loans may not exceed
	 $500,000.
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:12 - Rural development loans and participations › Section 12:07:12:17 - Loan repayments and maturities

Current through Register Vol. 51, page 10, July 15, 2024
Loan maturities and repayment schedules shall be based on the project
	 purpose and depreciable life of the security, but may not exceed a total often
	 years. Direct loans may have a longer maturity. There is no prepayment
	 penalty.
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:12 - Rural development loans and participations › Section 12:07:12:18 - Interest rates

Current through Register Vol. 51, page 10, July 15, 2024
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 secretary from time to
	 time 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.
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:12 - Rural development loans and participations › Section 12:07:12:19 - Interest rate determination

Current through Register Vol. 51, page 10, July 15, 2024
Except as stated in §
									12:07:12:18, the secretary may
	 change the rate of interest per annum according to the following
	 procedure:
(1) The secretary shall
  request recommendations for an interest rate from the review committee and the
  administrator;
(2) The secretary
  shall request information on current market rates;
(3) Within five working days, the secretary
  shall set the standard interest rate.
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:12 - Rural development loans and participations › Section 12:07:12:20 - Subsequent loan requests

Current through Register Vol. 51, page 10, July 15, 2024
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.
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:12 - Rural development loans and participations › Section 12:07:12:21 - Lender's responsibilities for a participation loan

Current through Register Vol. 51, page 10, July 15, 2024
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.
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:12 - Rural development loans and participations › Section 12:07:12:22 - Borrower's responsibilities

Current through Register Vol. 51, page 10, July 15, 2024
Borrowers are responsible for the following actions:
(1) Paving 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.
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:13 › Section 12:07:13:01

Current through Register Vol. 51, page 10, July 15, 2024
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:13 › Section 12:07:13:02

Current through Register Vol. 51, page 10, July 15, 2024
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:13 › Section 12:07:13:03

Current through Register Vol. 51, page 10, July 15, 2024
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:13 › Section 12:07:13:04

Current through Register Vol. 51, page 10, July 15, 2024
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:13 › Section 12:07:13:05

Current through Register Vol. 51, page 10, July 15, 2024
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:13 › Section 12:07:13:06

Current through Register Vol. 51, page 10, July 15, 2024
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:13 › Section 12:07:13:07

Current through Register Vol. 51, page 10, July 15, 2024
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:13 › Section 12:07:13:08

Current through Register Vol. 51, page 10, July 15, 2024
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:13 › Section 12:07:13:09

Current through Register Vol. 51, page 10, July 15, 2024
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:13 › Section 12:07:13:10

Current through Register Vol. 51, page 10, July 15, 2024
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:13 › Section 12:07:13:11

Current through Register Vol. 51, page 10, July 15, 2024
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:13 › Section 12:07:13:12

Current through Register Vol. 51, page 10, July 15, 2024
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:13 › Section 12:07:13:13

Current through Register Vol. 51, page 10, July 15, 2024
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:13 › Section 12:07:13:14

Current through Register Vol. 51, page 10, July 15, 2024
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:13 › Section 12:07:13:15

Current through Register Vol. 51, page 10, July 15, 2024
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:13 › Section 12:07:13:16

Current through Register Vol. 51, page 10, July 15, 2024
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:13 › Section 12:07:13:17

Current through Register Vol. 51, page 10, July 15, 2024
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:14 - Value adding livestock underwriting › Section 12:07:14:01 - Definitions

Current through Register Vol. 51, page 10, July 15, 2024
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
  South Dakota Department of Agriculture and the lender by which the department
  agrees to be responsible for a percentage of the borrower's default.
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:14 - Value adding livestock underwriting › Section 12:07:14:02 - Purpose

Current through Register Vol. 51, page 10, July 15, 2024
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.
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:14 - Value adding livestock underwriting › Section 12:07:14:03 - Eligibility requirements for applicants

Current through Register Vol. 51, page 10, July 15, 2024
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;
(c) Be age 18 or
  older;
(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 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;
(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;
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:14 - Value adding livestock underwriting › Section 12:07:14:04 - Eligibility requirements for lenders

Current through Register Vol. 51, page 10, July 15, 2024
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.
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:14 - Value adding livestock underwriting › Section 12:07:14:05 - Contents of application

Current through Register Vol. 51, page 10, July 15, 2024
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;
(c) A repayment plan;
(d) Tax forms for the two most recent years,
  including 1040 and 1040F, if applicable;
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:14 - Value adding livestock underwriting › Section 12:07:14:06 - Application process

Current through Register Vol. 51, page 10, July 15, 2024
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.
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:14 - Value adding livestock underwriting › Section 12:07:14:07 - Guaranty decision process

Current through Register Vol. 51, page 10, July 15, 2024
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;
(c) The lender meets the requirements
  contained in this chapter;
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:14 - Value adding livestock underwriting › Section 12:07:14:08 - Guaranty decision

Current through Register Vol. 51, page 10, July 15, 2024
After review the secretary may approve the application for the loan
	 guaranty, approve the application subject to certain terms and conditions, or
	 disapprove the application. The secretary or the secretary'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 secretary's decision is final.
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:14 - Value adding livestock underwriting › Section 12:07:14:09 - Guaranty amount

Current through Register Vol. 51, page 10, July 15, 2024
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.
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:14 - Value adding livestock underwriting › Section 12:07:14:10 - Conditional approval of the guaranty

Current through Register Vol. 51, page 10, July 15, 2024
If the secretary 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.
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:14 - Value adding livestock underwriting › Section 12:07:14:11 - Loan proceeds

Current through Register Vol. 51, page 10, July 15, 2024
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.
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:14 - Value adding livestock underwriting › Section 12:07:14:12 - Maximum term of the guaranty

Current through Register Vol. 51, page 10, July 15, 2024
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.
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:14 - Value adding livestock underwriting › Section 12:07:14:13 - Certification of guaranty

Current through Register Vol. 51, page 10, July 15, 2024
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.
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:14 - Value adding livestock underwriting › Section 12:07:14:14 - Interest rates

Current through Register Vol. 51, page 10, July 15, 2024
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.
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:14 - Value adding livestock underwriting › Section 12:07:14:15 - Number of guaranties allowed

Current through Register Vol. 51, page 10, July 15, 2024
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.
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:14 - Value adding livestock underwriting › Section 12:07:14:16 - Lender's responsibilities

Current through Register Vol. 51, page 10, July 15, 2024
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.
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:14 - Value adding livestock underwriting › Section 12:07:14:17 - Borrower's responsibilities

Current through Register Vol. 51, page 10, July 15, 2024
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.
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:14 - Value adding livestock underwriting › Section 12:07:14:18 - Office's responsibilities

Current through Register Vol. 51, page 10, July 15, 2024
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.
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:14 - Value adding livestock underwriting › Section 12:07:14:19 - Reserve fund

Current through Register Vol. 51, page 10, July 15, 2024
The department shall establish a pooled reserve fund for guarantee
	 programs administered by the department. 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 department) 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 South Dakota Department of Agriculture,
	 and is payable only from the pooled reserve fund and is not payable out of
	 other revenues or property of the department or any other funds of the State of
	 South Dakota.
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:16 - Agriculture finance counseling › Section 12:07:16:01 - Definitions

Current through Register Vol. 51, page 10, July 15, 2024
Terms used in this chapter mean:
(1) "Client," an individual farmer or rancher
  receiving agriculture finance counseling services;
(2) "Agriculture finance counselor," an
  individual hired on contract with the agriculture enterprise program, South
  Dakota Department of Agriculture, to provide assistance to farmers or ranchers
  requesting services.
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:07 - Agriculture enterprise programs › Chapter 12:07:16 - Agriculture finance counseling › Section 12:07:16:02 - Purpose

Current through Register Vol. 51, page 10, July 15, 2024
The agriculture finance counseling program shall provide assistance to
	 South Dakota farmers or ranchers who are experiencing difficulties with
	 financial management.
General Authority:
SDCL
		38-6-8.1.
Law Implemented:
SDCL
		38-6-3,
		38-6-8.