reglab/statecodes huggingface dataset:
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:22 - Agribusiness bonding and lending programs › Chapter 12:22:01 - General provisions › Section 12:22:01:08 - Application procedures

Current through Register Vol. 51, page 10, July 15, 2024
The eligible applicant must obtain an application from the authority
	 and submit the completed application along with the required application fee to
	 the authority. The authority's legal counsel shall review the application to
	 determine if the project qualifies. The authority staff shall review the
	 application to determine if program requirements are met. If the project
	 qualifies and program requirements are met, the staff shall forward the
	 application to the authority board of directors. The board shall consider the
	 application at its monthly meeting. If the project meets the authority's
	 requirements, the board shall consider the adoption of an intent resolution. An
	 intent resolution is not final approval and does not bind the authority to
	 issue bonds. The applicant shall contact a financial institution or an
	 underwriter and make arrangements for the structuring and purchase of the
	 tax-exempt bonds. When the terms of the financing are known, the authority's
	 bond counsel shall draft the necessary documentation for the financing. An
	 allocation from the state volume cap may be required from the Governor for a
	 bond issued which constitutes a private activity bond.
General Authority:
SDCL
		1-16E-24.
Law Implemented:
SDCL
		1-16E-7,
		1-16E-24.
Public hearing -- Approval of bond issuance, §
											12:22:01:09.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:22 - Agribusiness bonding and lending programs › Chapter 12:22:01 - General provisions › Section 12:22:01:10 - Priority of applications

Current through Register Vol. 51, page 10, July 15, 2024
The authority shall process applications on a first-come, first-served
	 basis, based on the receipt of a complete application.
General Authority:
SDCL
		1-16E-24.
Law Implemented:
SDCL
		1-16E-7,
		1-16E-24.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:22 - Agribusiness bonding and lending programs › Chapter 12:22:01 - General provisions › Section 12:22:01:11 - Procedures following bond issuance

Current through Register Vol. 51, page 10, July 15, 2024
Following disbursement of the bond proceeds, the authority may require
	 the bond purchaser or the bond purchaser's agent and the eligible applicant to
	 certify to the authority that the proceeds were used by a qualified eligible
	 applicant for a qualified purpose.
General Authority:
SDCL
		1-16E-24.
Law Implemented:
SDCL
		1-16E-7,
		1-16E-24.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:22 - Agribusiness bonding and lending programs › Chapter 12:22:01 - General provisions › Section 12:22:01:12 - Assignment of loans

Current through Register Vol. 51, page 10, July 15, 2024
Assignment of loans.
A bond purchaser may assign a loan in
	 whole or in part. Servicing of the loan may also be assigned.
General Authority:
SDCL
		1-16E-24.
Law Implemented:
SDCL
		1-16E-7,
		1-16E-24.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:22 - Agribusiness bonding and lending programs › Chapter 12:22:01 - General provisions › Section 12:22:01:13 - Right to audit

Current through Register Vol. 51, page 10, July 15, 2024
The authority may audit the records of the bond purchasers or their
	 agents and the eligible applicant relating to any loan or bond governed by this
	 chapter to ensure that bond proceeds were used for a qualified
	 purpose.
General Authority:
SDCL
		1-16E-24.
Law Implemented:
SDCL
		1-16E-7,
		1-16E-24.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:22 - Agribusiness bonding and lending programs › Chapter 12:22:02 - Value added agribusiness relending program › Section 12:22:02:01 - Definitions

Current through Register Vol. 51, page 10, July 15, 2024
Terms used in this chapter mean:
(1) "Agency," the Rural Business Development
  Program office in the South Dakota state office of the United States Department
  of Agriculture, or its successor;
(2) "Agricultural production," the
  cultivation, production, growing, raising, feeding, housing, breeding,
  hatching, or managing of crops, plants, animals, or birds, either for fiber,
  food for human consumption, or livestock feed;
(3) "Applicant," a natural person,
  partnership, limited liability partnership, joint venture, corporation, limited
  liability company, or other entity that has completed a VAARP application for a
  loan from the VAARP fund;
(4)
  "Board," the board of directors of the South Dakota Value Added Finance
  Authority;
(5) "Borrower," an
  applicant who has been awarded a loan from the VAARP fund;
(6) "Equity," capital that has no guaranteed
  or mandatory return which must be paid out in any event, has no definite
  timetable for repayment of the capital investment, and may not be withdrawn at
  the contributor's option without the permission of the superior debt
  holders;
(7) "Federal discount
  rate," the discount rate established by the United States Federal Reserve Board
  of Governors;
(8) "IRP," the
  Intermediary Relending Program revolving loan fund created through an
  Intermediary Relending Program loan from the United States Department of
  Agriculture;
(9) "Preliminary
  design stage," that portion of the project associated with market research
  studies identifying the project scope and need, compilation of the business
  plan, written initial cost estimates, written site options and description, and
  the commitment of the regulated lender;
(10) "Prime rate," the New York prime rate of
  interest, as published in the "Money" section of the Wall Street
  Journal;
(11) "Rural area," all
  territory in South Dakota that, meets the United States Department of
  Agricultures definition of a rural area;
(12) "Total project costs," the direct costs
  associated with the purchase of land, necessary site development and
  improvements, construction or acquisition and remodeling of buildings and works
  necessary to the operation and protection of the project, purchase and
  installation of machinery and equipment, fees for services, approved in-kind
  contributions, and adequate financing of working capital;
(13) "VAARP," the value-added agribusiness
  relending program; and
(14) "
  VAFA," the South Dakota Value Added Finance Authority.
General Authority:
SDCL
		1-16E-24.
Law Implemented:
SDCL
		1-16E-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:22 - Agribusiness bonding and lending programs › Chapter 12:22:02 - Value added agribusiness relending program › Section 12:22:02:02 - Eligibility requirements

Current through Register Vol. 51, page 10, July 15, 2024
To be eligible for a loan under this chapter, an applicant must satisfy
	 the following requirements:
(1)
  Applicants may be individuals, public or private organizations, or other legal
  entities with the necessary power and authority to incur the debt and carry out
  the purpose of the loan;
(2) The
  project must be located in a rural area;
(3) The project must directly or indirectly
  benefit South Dakota farmers or ranchers;
(4) The applicant must be unable to finance
  the project from its own resources or through commercial credit or other
  federal, state, or local programs upon reasonable rates and terms;
  and
(5) No individual applicant or
  the principal officers or directors of an applicant other than an individual,
  nor the immediate family of any such individual, officer, or director, may hold
  any legal or financial interest or influence in the VAFA. Neither the VAFA nor
  its principal officers nor their immediate family may hold any legal or
  financial interest or influence in the applicant.
General Authority:
SDCL
		1-16E-24.
Law Implemented:
SDCL
		1-16E-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:22 - Agribusiness bonding and lending programs › Chapter 12:22:02 - Value added agribusiness relending program › Section 12:22:02:03 - Application requirements

Current through Register Vol. 51, page 10, July 15, 2024
Application forms shall be provided by the VAFA and must be completed
	 and signed before an application is presented to the board.
General Authority:
SDCL
		1-16E-24.
Law Implemented:
SDCL
		1-16E-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:22 - Agribusiness bonding and lending programs › Chapter 12:22:02 - Value added agribusiness relending program › Section 12:22:02:04 - Loan amounts

Current through Register Vol. 51, page 10, July 15, 2024
The total of all loans to any borrower may not exceed the lesser
	 of:
(1) $250,000; or
(2) Seventy-five percent of the total project
  cost.
No more than 25 percent of the VAARP loan fund may be used for loans
	 that exceed $150,000.
General Authority:
SDCL
		1-16E-24.
Law Implemented:
SDCL
		1-16E-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:22 - Agribusiness bonding and lending programs › Chapter 12:22:02 - Value added agribusiness relending program › Section 12:22:02:05 - Equity contribution

Current through Register Vol. 51, page 10, July 15, 2024
An applicant must provide an equity contribution of a minimum of ten
	 percent of the total project cost. In-kind contributions and completed work may
	 be applied toward the equity contribution and total project cost if, in the
	 judgment of the VAFA and the agency, such in-kind contributions and work
	 completed contribute sufficiently to the current project. The equity
	 requirement may be waived by a two-thirds vote of the VAFA, with the approval
	 of the agency.
General Authority:
SDCL
		1-16E-24.
Law Implemented:
SDCL
		1-16E-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:22 - Agribusiness bonding and lending programs › Chapter 12:22:02 - Value added agribusiness relending program › Section 12:22:02:06 - Permissible uses of loan proceeds

Current through Register Vol. 51, page 10, July 15, 2024
VAARP loan proceeds must be used for community development projects,
	 establishment of new businesses, expansion of existing businesses, creation of
	 employment opportunities or saving existing jobs, and add value to South Dakota
	 agricultural commodities through further processing or marketing. Such uses may
	 include:
(1) Business and industrial
  acquisitions if the loan will keep the business from closing, prevent the loss
  of employment opportunities, or provide expanded job opportunities;
(2) Business construction, conversion,
  enlargement, repair, modernization, or development;
(3) Purchase or leasing of land, and the
  development thereof, including easements, rights-of-way, or
  buildings;
(4) Purchase of
  equipment, leasehold improvements, machinery, or supplies;
(5) Pollution control or abatement;
(6) Transportation services;
(7) Start-up operating costs and working
  capital;
(8) Interest during the
  period before the project becomes operational, but not to exceed three
  years;
(9) Feasibility
  studies;
(10) Debt refinancing,
  under the following conditions:
(a) The VAFA
  shall make a complete review to determine whether the loan will restructure
  debts on a schedule that will allow the borrower to operate successfully and
  pay off the loan;
(b) Refinancing
  loans are allowed only if VAFA determines that the project is viable and
  refinancing is necessary to create new or save existing jobs or create or
  continue a needed service; and
(c)
  On any request for refinancing of existing secured loans, the VAFA will
  require, at a minimum, the previously held collateral as security for the loans
  and may not pay off a creditor in excess of the value of the
  collateral;
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:22 - Agribusiness bonding and lending programs › Chapter 12:22:02 - Value added agribusiness relending program › Section 12:22:02:07 - Impermissible uses of loan proceeds

Current through Register Vol. 51, page 10, July 15, 2024
The borrower may not use the proceeds for any of the following
	 purposes:
(1) Assistance in excess of
  what is needed to accomplish the purpose of the project;
(2) Distribution of payment to the owner,
  partners, shareholders, or beneficiaries of the borrower or members of their
  families if such persons will retain any portion of their equity in the
  borrower;
(3) Charitable
  institutions that would not have revenue from sales or fees to support the
  operation and repay the loan, churches, organizations affiliated with or
  sponsored by churches, and fraternal organizations;
(4) A loan to an applicant which has an
  application pending with or loan outstanding from another intermediary
  involving an IRP revolving fund if the IRP revolving fund loans would exceed
  the limits established in §
									12:22:02:04;
(5) Agricultural production;
(6) The transfer of ownership unless the loan
  will keep the business from closing, or prevent the loss of employment
  opportunities in the area, or provide expanded job opportunities;
(7) Community antenna television services or
  facilities;
(8) Any illegal
  activity;
(9) Any project that is
  in violation of either a federal, state, or local environmental protection law
  or regulation or an enforceable land use restriction unless the assistance
  given will result in curing or removing the violation;
(10) Lending and investment institutions and
  insurance companies; or
(11) Golf
  courses, race tracks, or gambling facilities.
General Authority:
SDCL
		1-16E-24.
Law Implemented:
SDCL
		1-16E-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:22 - Agribusiness bonding and lending programs › Chapter 12:22:02 - Value added agribusiness relending program › Section 12:22:02:08 - Factors for action by VAFA

Current through Register Vol. 51, page 10, July 15, 2024
The VAFA, in making a decision on an application, may, in addition to
	 other factors necessary to make a sound loan decision, consider the
	 following:
(1) Program impact factors:
(a) Population of the community where the
  project is to be located;
(b)
  Amount of agricultural products used;
(c) Number of jobs created for low-income
  persons and displaced farm families;
(d) Amount of loan requested;
(e) Net economic effect of increasing or
  stabilizing the economy on the community, area, and state;
(f) Competitive effect on existing
  businesses;
(g) Support of the
  public entities of the community and area;
(h) The amount of the owner's equity
  contributed to the project;
(i) The
  effect of the project on the environment, health, and safety of the people in
  the community and state;
(j)
  Compatibility with economic development plans of the area and state;
(k) Potential for creating quality jobs and
  growth of those jobs;
(l) Payroll
  pay structure; and
(m) Employee
  benefit package;
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:22 - Agribusiness bonding and lending programs › Chapter 12:22:02 - Value added agribusiness relending program › Section 12:22:02:09 - Action by VAFA on applications

Current through Register Vol. 51, page 10, July 15, 2024
Within 60 days after the VAFA receives a completed application, the
	 VAFA shall either approve the application as submitted, approve the application
	 with conditions, or disapprove the application. The VAFA may extend the time
	 for consideration of an application for up to 50 additional days by advising
	 the applicant of the extension in writing or by telephone.
General Authority:
SDCL
		1-16E-24.
Law Implemented:
SDCL
		1-16E-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:22 - Agribusiness bonding and lending programs › Chapter 12:22:02 - Value added agribusiness relending program › Section 12:22:02:10 - Reservation of right to make loan

Current through Register Vol. 51, page 10, July 15, 2024
If the VAFA approves the loan application, the application shall then
	 be sent to the agency for approval. Except as provided in this section, no loan
	 agreement may be made unless approved by the agency. If the agency rejects a
	 loan application, the VAFA may approve the loan from VAFA funds that are not
	 subject to an agreement between the VAFA and the agency if the loan otherwise
	 complies with this chapter.
General Authority:
SDCL
		1-16E-24.
Law Implemented:
SDCL
		1-16E-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:22 - Agribusiness bonding and lending programs › Chapter 12:22:02 - Value added agribusiness relending program › Section 12:22:02:11 - Acceptance by applicant - Time restrictions

Current through Register Vol. 51, page 10, July 15, 2024
Within six months after the official loan approval by the VAFA and the
	 agency, the applicant must accept the approval in writing or the approval may
	 be withdrawn at the discretion of the VAFA. Within six months after written
	 acceptance, the applicant must begin the project. Final disbursement of the
	 loan proceeds must be made within one year after approval by the VAFA, unless
	 the VAFA pursuant to prior written consent extends the time. The request for
	 extension must be submitted at a regularly scheduled meeting before the
	 expiration of the six-month period. The VAFA shall decide the length of the
	 extension period.
General Authority:
SDCL
		1-16E-24.
Law Implemented:
SDCL
		1-16E-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:22 - Agribusiness bonding and lending programs › Chapter 12:22:02 - Value added agribusiness relending program › Section 12:22:02:12 - Review of financial status

Current through Register Vol. 51, page 10, July 15, 2024
After the VAFA and the agency approve the loan but before the loan
	 agreement is entered into, the VAFA may conduct an overall review of the
	 applicant's financial status. This review may include an analysis of all assets
	 and liabilities and an analysis of the ability of the applicant to honor the
	 loan commitments. If the applicant's financial condition has materially changed
	 since the approval of the loan, the VAFA may disapprove the loan or modify the
	 terms of the loan.
General Authority:
SDCL
		1-16E-24.
Law Implemented:
SDCL
		1-16E-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:22 - Agribusiness bonding and lending programs › Chapter 12:22:02 - Value added agribusiness relending program › Section 12:22:02:13 - Loan agreement

Current through Register Vol. 51, page 10, July 15, 2024
After the application is approved by the VAFA and the agency, and after
	 the financial status of the applicant is reviewed, the VAFA shall execute a
	 loan agreement with the borrower. The loan agreement shall 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 agreement.
	 Loans may be secured or unsecured. Secured loans may be secured by liens on the
	 interest of the borrower in real or personal property, tangible or intangible
	 property, easements, rights-of-way, water rights, leasehold interest used in
	 connection with the project, and any other assets of the borrower considered
	 necessary by the VAFA to adequately collateralize the loan.
General Authority:
SDCL
		1-16E-24.
Law Implemented:
SDCL
		1-16E-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:22 - Agribusiness bonding and lending programs › Chapter 12:22:02 - Value added agribusiness relending program › Section 12:22:02:14 - Maturity and interest rate

Current through Register Vol. 51, page 10, July 15, 2024
In no event may the maturity of the loan be more than 10 years, nor may
	 regular payments be amortized over more than 20 years. The VAFA shall match the
	 term with the useful life of the collateral securing the loan. The interest
	 rate shall be fixed for the term of the loan. The interest rate may not exceed
	 the prime rate and may not be less than the federal discount rate, as published
	 on the date of approval. The borrower is responsible for arranging other
	 financing, if necessary, when the note comes due. If the borrower is unable to
	 obtain financing, the borrower may apply before the loan due date for an
	 extension of the loan by the VAFA at an interest rate and for a time period to
	 be set by the VAFA.
General Authority:
SDCL
		1-16E-24.
Law Implemented:
SDCL
		1-16E-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:22 - Agribusiness bonding and lending programs › Chapter 12:22:02 - Value added agribusiness relending program › Section 12:22:02:15 - Reporting requirements for borrower

Current through Register Vol. 51, page 10, July 15, 2024
The borrower shall submit to the VAFA annually a report containing the
	 following information:
(1) An
  employment report;
(2) The amount
  of agricultural products used in the business and the amount of the product
  that is exported from the state;
(3) The number of jobs for low-income persons
  and displaced farm families;
(4)
  Financial statements in a form acceptable to the VAFA as specified in the loan
  authorization document; and
(5)
  Other information as requested by the VAFA. The VAFA may require that the
  financial statements be compiled, reviewed, or audited by an independent
  accountant at the expense of the borrower.
General Authority:
SDCL
		1-16E-24.
Law Implemented:
SDCL
		1-16E-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:22 - Agribusiness bonding and lending programs › Chapter 12:22:02 - Value added agribusiness relending program › Section 12:22:02:16 - Inspection of project by VAFA - Retention of records

Current through Register Vol. 51, page 10, July 15, 2024
During the term of the loan, the VAFA may inspect construction, inspect
	 the operation of the project, and request the borrower to provide accounting
	 records, payments, and invoices to ensure compliance with the terms of the loan
	 agreement. The borrower shall retain accounting and tax records for the term of
	 the loan or for a period of three years, whichever is longer. The VAFA may
	 contract for project monitoring and servicing during the planning,
	 construction, and operation of the business and project.
General Authority:
SDCL
		1-16E-24.
Law Implemented:
SDCL
		1-16E-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:22 - Agribusiness bonding and lending programs › Chapter 12:22:02 - Value added agribusiness relending program › Section 12:22:02:17 - Default on loan agreement

Current through Register Vol. 51, page 10, July 15, 2024
If the borrower violates any of the terms of the loan agreement, the
	 VAFA may place the borrower in default. Upon default, the VAFA may do one or
	 more of the following:
(1) Declare
  immediately due and payable the entire principal amount then outstanding and
  the accrued interest;
(2) Take
  possession of or title to the project and its facilities; repair, maintain,
  operate, sell, lease, or otherwise dispose of the project and its facilities to
  another entity; and charge the account of the borrower for expenses for repair,
  maintenance, and operation of the project and other expenses necessary to cure
  the cause of the default;
(3) Take
  any other action considered appropriate by the VAFA to protect the interest of
  the VAFA and agency;
(4) Exercise
  any rights of a creditor under the South Dakota uniform commercial code or any
  other statute; and
(5) Enforce any
  remedies agreed to in the loan agreement executed between the borrower and the
  VAFA.
General Authority:
SDCL
		1-16E-24.
Law Implemented:
SDCL
		1-16E-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:22 - Agribusiness bonding and lending programs › Chapter 12:22:02 - Value added agribusiness relending program › Section 12:22:02:18 - Interim financing

Current through Register Vol. 51, page 10, July 15, 2024
Interim financing is not refinancing of existing debt. The VAFA may
	 require that the borrower use a commitment for a VAARP loan to secure interim
	 financing from a regulated lender. The VAFA shall satisfy the interim financing
	 loan in accordance with the terms of the interim financing loan agreement upon
	 certification of completion of the project in accordance with the VAARP
	 commitment.
General Authority:
SDCL
		1-16E-24.
Law Implemented:
SDCL
		1-16E-8.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:22 - Agribusiness bonding and lending programs › Chapter 12:22:03 - Value-added agriculture subfund › Section 12:22:03:01 - Definitions

Current through Register Vol. 51, page 10, July 15, 2024
Terms used in this chapter mean:
(1) "Applicant," any natural person or entity
  that has completed a VASF funding application;
(2) "Board," the Value Added Finance
  Authority;
(3) "Recipient," an
  applicant who has been awarded funds from the VASF;
(4) "SDDA," the South Dakota Department of
  Agriculture;
(5) "Project," the new
  business or expansion of an existing business, or any development activities
  that will encourage or enhance agricultural development, that is eligible for
  funds from the VASF;
(6) "Study,"
  any feasibility study, including any associated business plan or marketing
  study, including any associated business plan; or land use study, including any
  associated business plan; to be conducted in connection with the project and
  funded from the VASF. The term, "study," does not include research and
  development study; or advertising, travel, salaries, consultant expense, or any
  other work associated with an equity drive;
(7) "VASF," the value-added agriculture
  subfund of the rural rehabilitation fund created by SDCL
  38-6-1;
(8) "VAFA," the Value Added Finance Authority
  established pursuant to SDCL
  1-16E-4.
General Authority:
SDCL
		38-6-16.
Law Implemented:
SDCL
		38-6-13.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:22 - Agribusiness bonding and lending programs › Chapter 12:22:03 - Value-added agriculture subfund › Section 12:22:03:02 - Eligibility

Current through Register Vol. 51, page 10, July 15, 2024
Any natural person or entity whose project meets at least one of the
	 following criteria may apply for VASF funding:
(1) The food, feed, and fiber products and
  uses of the project use South Dakota agriculture products and add to the value
  of agricultural products; or
(2)
  The project will directly or indirectly benefit South Dakota farmers and
  ranchers or agriculture-related processing businesses, including providing
  access to new markets.
General Authority:
SDCL
		38-6-16.
Law Implemented:
SDCL
		38-6-16.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:22 - Agribusiness bonding and lending programs › Chapter 12:22:03 - Value-added agriculture subfund › Section 12:22:03:03 - Application requirements

Current through Register Vol. 51, page 10, July 15, 2024
Application forms shall be provided by SDDA and must be completed and
	 signed before being presented to VAFA. SDDA shall screen all applications for
	 completeness and eligibility upon receipt. No incomplete or ineligible
	 applications may be presented to the board. The VAFA Board may charge an
	 application fee to be determined annually on July 1. At a minimum the
	 application must include:
(1)
  Applicant's name and address, including all owners, investors, consultants, and
  management of projects, including resumes and references;
(2) Articles of incorporation and bylaws or
  other legal documents or agreements that describe the legal operation or
  structure of the business or of an intent to form a legal entity upon the award
  of VASF funding;
(3) An executive
  summary, summarizing the essential elements of the project, including narrative
  and funding request;
(4) Project
  narrative and how it complies with the eligibility of the VASF, including a
  detailed budget of how all funds will be spent;
(5) Any other information as requested by the
  board in order to make a sound and prudent funding decision.
General Authority:
SDCL
		38-6-16.
Law Implemented:
SDCL
		38-6-16.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:22 - Agribusiness bonding and lending programs › Chapter 12:22:03 - Value-added agriculture subfund › Section 12:22:03:04 - Funding amount

Current through Register Vol. 51, page 10, July 15, 2024
Unless waived by a majority of the members of the board present and
	 voting, pursuant to this chapter, may not exceed $100,000 for any one
	 project.
General Authority:
SDCL
		38-6-16.
Law Implemented:
SDCL
		38-6-14.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:22 - Agribusiness bonding and lending programs › Chapter 12:22:03 - Value-added agriculture subfund › Section 12:22:03:05 - Uses of funds

Current through Register Vol. 51, page 10, July 15, 2024
Funding must be for project specific requests including consultant
	 contracts, attorney fees, down payment, strategic planning, supplies, and
	 necessary services for studies or business planning, land use studies, and for
	 other purposes not listed in this section as may be individually approved by
	 the board. Funding may not be used to finance or refinance existing debt; for
	 the purchase of land; for the construction, purchase, or installation of
	 equipment; or for other fees, services, or costs related to the construction of
	 the project. The board may commission studies and pay the entire cost of the
	 study from VASF if it determines that doing so may avoid duplication of effort
	 or will serve an unmet need. The cost to the VASF of a board-commissioned study
	 may not exceed $100,000.
General Authority:
SDCL
		38-6-16.
Law Implemented:
SDCL
		38-6-14,
		38-6-16.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:22 - Agribusiness bonding and lending programs › Chapter 12:22:03 - Value-added agriculture subfund › Section 12:22:03:06 - Factors for board action

Current through Register Vol. 51, page 10, July 15, 2024
When making a decision on an application, the board may, in addition to
	 other factors necessary to make a prudent funding decision, consider the
	 following:
(1) The concept is new
  technology or a new application of existing technology with a reasonable
  assurance that the concept will work;
(2) Preliminary market and feasibility
  research has been conducted by the applicant or others, and there is a
  reasonable assurance of a potential market;
(3) The applicant has demonstrated the
  ability to manage the commercialization of the concept and has prepared a
  commercialization development plan;
(4) There are favorable recommendations for
  the project from local economic development groups, university-based technical
  specialists, or other qualified service providers;
(5) There are adequate references available
  to determine the applicant's, and any consultant's, qualifications and
  background;
(6) The applicant
  demonstrates a personal commitment to the project;
(7) The capacity of the applicant to repay a
  loan, if awarded, including the amount of the loan; the economic feasibility of
  the project and product; the ability of the applicant to service the debt from
  cash flow of operations, capital, or collateral; the review of the financial
  status of the project, business plan, and applicant; the satisfaction of
  engineering, legal and environmental regulations; and the availability of
  necessary utilities;
(8) The
  amount, terms, and conditions of the loan, if awarded, and compatibility with
  the needs of the business and the VASF;
(9) There is an adequate and realistic budget
  projection;
(10) Compatibility with
  economic development plans of the area and state;
(11) The balance remaining in the VASF;
  and
(12) The project follows or
  will adhere to all environmental laws and regulations.
General Authority:
SDCL
		38-6-16.
Law Implemented:
SDCL
		38-6-16.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:22 - Agribusiness bonding and lending programs › Chapter 12:22:03 - Value-added agriculture subfund › Section 12:22:03:07 - Board action on applications

Current through Register Vol. 51, page 10, July 15, 2024
Within 45 days after SDDA receives a completed application, the board
	 shall approve the application as requested, disapprove the application for
	 modification, approve the application contingent on realization of certain
	 defined conditions, or disapprove the application. The board may extend the
	 time for consideration of an application for up to 50 additional days by
	 advising the applicant of the extension.
General Authority:
SDCL
		38-6-16.
Law Implemented:
SDCL
		38-6-14,
		38-6-16.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:22 - Agribusiness bonding and lending programs › Chapter 12:22:03 - Value-added agriculture subfund › Section 12:22:03:08 - Acceptance and time restrictions of applicant

Current through Register Vol. 51, page 10, July 15, 2024
Within 60 days after official funding approval by the board, the
	 applicant must accept the approval, including any conditions required by the
	 board, in writing or the approval is void. Within six months after written
	 acceptance, the applicant must commence the project. The official funding
	 approval must lay out the disbursement and repayment terms, if any, of the
	 approved funding.
General Authority:
SDCL
		38-6-16.
Law Implemented:
SDCL
		38-6-16.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:22 - Agribusiness bonding and lending programs › Chapter 12:22:03 - Value-added agriculture subfund › Section 12:22:03:09 - Review of financial status

Current through Register Vol. 51, page 10, July 15, 2024
After the funding is approved but before the funding is disbursed, the
	 board or SDDA may conduct an overall review of the applicant's financial
	 status. This review may include an analysis of all assets and liabilities and
	 an analysis of the applicant's ability to repay the loan, if necessary, and
	 comply with the official funding approval. The board may withdraw the
	 commitment at any time if a material adverse change occurs.
General Authority:
SDCL
		38-6-16.
Law Implemented:
SDCL
		38-6-16.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:22 - Agribusiness bonding and lending programs › Chapter 12:22:03 - Value-added agriculture subfund › Section 12:22:03:10 - Funding documents

Current through Register Vol. 51, page 10, July 15, 2024
After an application for funding is approved, the board, or their
	 designee, shall execute a funding agreement with the recipient. The official
	 funding agreement shall contain the rights and responsibilities of the parties
	 and the terms and conditions of the funding. The requirements to secure funding
	 shall be included in the agreement.
General Authority:
SDCL
		38-6-16.
Law Implemented:
SDCL
		38-6-16.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:22 - Agribusiness bonding and lending programs › Chapter 12:22:03 - Value-added agriculture subfund › Section 12:22:03:11 - Reporting

Current through Register Vol. 51, page 10, July 15, 2024
The recipient shall submit to the board quarterly reports describing
	 progress on the project, including compliance with the time line and budget
	 contained in the application. Any material deviation from any condition imposed
	 by the board or in the funding agreement may result in the withholding of
	 further funding or the declaration of a default.
General Authority:
SDCL
		38-6-16.
Law Implemented:
SDCL
		38-6-16.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:22 - Agribusiness bonding and lending programs › Chapter 12:22:03 - Value-added agriculture subfund › Section 12:22:03:12 - Inspection by the board and retention of records

Current through Register Vol. 51, page 10, July 15, 2024
All financial documents, books, receipts, orders, expenditures,
	 electronic data, and accounting procedures and practices of the borrower are
	 subject to examination by or for the board at any time for three years
	 following the completion of the study or project or for the life of the loan,
	 if applicable, whichever period is greater.
General Authority:
SDCL
		38-6-16.
Law Implemented:
SDCL
		38-6-16.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:22 - Agribusiness bonding and lending programs › Chapter 12:22:03 - Value-added agriculture subfund › Section 12:22:03:13 - Maturity and interest rate

Current through Register Vol. 51, page 10, July 15, 2024
If a loan is made, unless different terms are established upon the
	 affirmative vote of two-thirds of the members of the board present and voting,
	 the maturity date of the VASF funding may not be more than five years from the
	 date of the final disbursement of loan proceeds, with regular payments
	 amortized over not more than ten years from the date of final disbursement of
	 loan proceeds. The first payment is due one year from the date of the final
	 disbursement of loan proceeds. The borrower may request an extension of the
	 date of the first payment, but the extension may not act to extend the final
	 maturity date.
The board shall establish the standard interest rate for VASF loans
	 from time-to-time. The board may deviate from the standard interest rate based
	 on the economic impact of the project, risk, and other prudent lending
	 criteria. The board shall consider the following when establishing the standard
	 interest rate:
(1) State and national
  market interest rates;
(2) State
  and national economic conditions;
(3) The solvency and balance of the VASF;
  and
(4) Other economic or business
  information necessary to fulfill the board mission and to develop and promote
  production agriculture and value-added agricultural products.
The borrower is responsible for arranging other financing when the VASF
	 loan is due. If the borrower is unable to obtain financing, the borrower may
	 apply for an extension of the loan by the board at an interest rate and term
	 established by the board. The borrower must submit any application for an
	 extension by the monthly loan application deadline before the loan maturity
	 date.
General Authority:
SDCL
		38-6-16.
Law Implemented:
SDCL
		38-6-14,
		38-6-16.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:22 - Agribusiness bonding and lending programs › Chapter 12:22:03 - Value-added agriculture subfund › Section 12:22:03:14 - Loan forgiveness

Current through Register Vol. 51, page 10, July 15, 2024
Upon the recipient's written petition and a showing of good cause, the
	 board may forgive all or part of a VASF loan upon terms and conditions
	 established by the board. When determining whether to forgive all or any part
	 of a VASF loan, the board shall consider the following:
(1) Whether the study deemed the project to
  be feasible;
(2) Whether the
  borrower has proceeded or intends to proceed with the project;
(3) Whether the borrower has acted in
  conformity with the terms of the loan agreement and applicable law, including
  this chapter; and
(4) Whether the
  borrower has acted in good faith in connection with the application, the
  project, the loan, and the decision not to proceed with the project.
A petition for loan forgiveness must be accompanied by the original and
	 all copies of the study and related documents, including any related business
	 plan. If the loan is forgiven in whole or in part, all right, title, and
	 interest in the study, including the exclusive right to use the study and any
	 business plan associated with the study, becomes the property of the
	 board.
General Authority:
SDCL
		38-6-16.
Law Implemented:
SDCL
		38-6-14,
		38-6-16.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:22 - Agribusiness bonding and lending programs › Chapter 12:22:03 - Value-added agriculture subfund › Section 12:22:03:15 - Default

Current through Register Vol. 51, page 10, July 15, 2024
If the borrower violates any of the terms of the funding agreement, the
	 other loan documents, this chapter, or other applicable law, the board may
	 declare the funding in default. Upon default, the board may do one or more of
	 the following:
(1) Declare the entire
  principal amount then outstanding and interest accrued thereon immediately due
  and payable;
(2) Increase the
  interest rate to the default rate established in the loan documents;
(3) Take possession of the study or other
  collateral;
(4) Repair, maintain,
  and operate the collateral, or sell, lease, or otherwise dispose of the
  collateral to another person or entity; or
(5) Take any other action considered
  appropriate by the board to protect the interest of the board and the
  VASF.
General Authority:
SDCL
		38-6-16.
Law Implemented:
SDCL
		38-6-16.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:22 - Agribusiness bonding and lending programs › Chapter 12:22:03 - Value-added agriculture subfund › Section 12:22:03:16 - Delegation of administrative functions

Current through Register Vol. 51, page 10, July 15, 2024
The SDDA shall perform the administrative functions of the creation,
	 processing, and review of funding applications; the preparation and negotiation
	 of agreements; the review of the financial status of an applicant; loan
	 servicing; and other functions necessary to expedite and assist it in the
	 performance of its duties. Notwithstanding any assurance, guarantee,
	 communication, or representation made to the contrary, there is no commitment
	 of the VASF without specific authorization by the board. Only the board may
	 make an award from the VASF to an applicant.
General Authority:
SDCL
		38-6-16.
Law Implemented:
SDCL
		38-6-14.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:22 - Agribusiness bonding and lending programs › Chapter 12:22:03 - Value-added agriculture subfund › Section 12:22:03:17 - Official forms

Current through Register Vol. 51, page 10, July 15, 2024
The board may from time-to-time establish official forms or documents,
	 including a loan agreement, promissory note, mortgage, security agreement,
	 employment agreement, and such other documents, certifications, and agreements
	 as the board deems necessary and appropriate. SDDA may consent on behalf of the
	 board on a case-by-case basis to any nonsubstantive modification or to any
	 modification necessary to conform the official forms to the terms of the
	 funding as established by the board.
General Authority:
SDCL
		38-6-16.
Law Implemented:
SDCL
		38-6-14.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:22 - Agribusiness bonding and lending programs › Chapter 12:22:03 - Value-added agriculture subfund › Section 12:22:03:18 - Conflict of interest

Current through Register Vol. 51, page 10, July 15, 2024
No member of the board or SDDA staff may participate in or vote upon a
	 decision of the board relating to an application or loan servicing action
	 relating to a borrower in which that individual has a direct personal or
	 financial interest.
General Authority:
SDCL
		38-6-16.
Law Implemented:
SDCL
		38-6-14.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:22 - Agribusiness bonding and lending programs › Chapter 12:22:03 - Value-added agriculture subfund › Section 12:22:03:19 - Confidentiality

Current through Register Vol. 51, page 10, July 15, 2024
The board and SDDA shall, to the extent it constitutes or contains
	 trade secrets or commercial or financial information relating to the operations
	 of an applicant or borrower, maintain as confidential any documents, materials,
	 information, or data received or generated by the board or SDDA in connection
	 with a proposed or pending application for a VASF loan or an existing VASF
	 loan. If requested by the applicant, the fact that an application has been
	 proposed or is pending shall be maintained as confidential until such time as
	 the application is presented to the board for approval.
General Authority:
SDCL
		38-6-16.
Law Implemented:
SDCL
		38-6-14.
South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:26 - Eggs and egg products › Chapter 12:26:01 - Definitions › Section 12:26:01:01 - General definitions

Current through Register Vol. 51, page 10, July 15, 2024
Words defined in SDCL
	 39-11-1 have the same meaning when
	 used in this article. In addition, terms used in this article mean:
(1) "Container," a box, case, basket, carton,
  sack, bag, or other receptacle, wrapper, or cover;
(2) "Destination," the point other than
  origin where graded eggs are stored, such as a warehouse, or offered or exposed
  for sale, such as a retail store;
(3) "Egg inspector," a state employee or
  official who is authorized by the secretary to perform inspections pursuant to
  this article;
(4) "Haugh unit," a
  measurement of interior egg quality based on albumin height near the yolk of a
  broken-out egg in relation to the weight in grams of the egg;
(5) "Inedible eggs," black rots, yellow rots,
  white rots, mixed rots (addled eggs), sour eggs, eggs with green whites, eggs
  with stuck yolks, moldy eggs, musty eggs, eggs showing blood rings, eggs
  containing embryo chicks (at or beyond the blood ring stage), and any eggs that
  are adulterated as defined in #1033 of the Federal Food, Drug, and Cosmetic
  Act, 21 U.S.C.A. #1033;
(6)
  "Leaker," an individual egg that has a crack or break in the shell and shell
  membranes to the extent that the egg contents are exuding or free to exude
  through the shell;
(7) "Loss," an
  egg that is inedible, smashed, or broken or with contents that are leaking,
  cooked, frozen, or contaminated or contain bloody whites, large blood spots,
  large meat spots, or other foreign material;
(8) "Origin," the point at which eggs are
  graded and packed according to quality and weight standards;
(9) "Potable water," water that has been
  approved by the department of environment and natural resources as safe for
  drinking;
(10) "Producers," poultry
  raisers, farmers, and other individuals and firms producing eggs for
  sale;
(11) "Undergrade eggs," eggs
  from which the AA, A, or B quality eggs have been removed;
(12) "Nest run eggs," eggs which are packed
  as they come from the production facilities without having been washed, sized,
  or candled for quality, with the exception that some checks, dirties, or other
  obvious undergrades may have been removed at the time of gathering;
(13) "Retail store," a place of business that
  offers for sale shell eggs;
(14)
  "Wholesale dealer," a person buying eggs from producers, truckers, or other
  wholesalers and selling South Dakota consumer grades or their equivalent to
  retailers, institutional consumers, or other wholesalers in lots greater than
  three cases or ninety dozen;
(15)
  "Loose pack," eggs offered for sale that are not covered or in an enclosed
  carton.
General Authority:
SDCL
		39-11-7.
Law Implemented:
SDCL
		39-11-7.