South Dakota Administrative Rules › Title 12 - Department of Agriculture › Article 12:21 - Beginning farmer loan program › Chapter 12:21:01 - General provisions › Section 12:21:01:13 - Issuance of bond

Current through Register Vol. 51, page 10, July 15, 2024
The authority may not issue a bond for the purpose of financing a
	 project for a specific beginning farmer unless, before its issuance, the
	 authority has conducted a public hearing conforming to the applicable
	 requirements of § 147(f)(2)(B) of the United States Internal Revenue Code
	 of 1986 as amended to July 1, 2008. Upon receipt of a completed application,
	 the executive director shall set a date, time, and place for the hearing. The
	 executive director shall publish notice of hearing at least 14 days before the
	 date of the hearing in a newspaper of general circulation available to
	 residents in the county where the project is located. The notice shall include
	 the date, time, and place of the hearing, the name of the beginning farmer, a
	 general description of the project, and the right of individuals to request a
	 local hearing. The hearing shall be held at the location stated in the notice
	 unless, by the time scheduled for the hearing, the authority receives a written
	 request that a local hearing be held.
If a local hearing is requested, the authority may cancel the
	 previously scheduled hearing. The executive director shall set a date, time,
	 and place for a local hearing and publish notice of the hearing in the local
	 area as provided in this section. The date, time, and place for the local
	 hearing must be reasonably convenient to persons affected by the project.
	 Public hearings may be conducted by a staff member, a board member of the
	 authority, an appointee or employee of the authority, or another qualified
	 hearing officer.
The authority may not issue a bond for the purpose of financing a
	 project by a specific beginning farmer unless, before the issuance, the
	 Governor or another elected official of the state who is designated by the
	 Governor, approves the issuance of the bond. Following the public hearing, the
	 authority shall send to the Governor's office, or the office of the designated
	 official, a statement describing each bond or series of bonds which it proposes
	 to issue, along with a summary of the public comments received.
Following approval of the loan by the authority and upon completion of
	 a public hearing and approval of the bond issuance by the Governor or another
	 designated state official, the authority shall issue a bond, to be purchased by
	 the lender, in the amount and fitting the terms of the loan to the beginning
	 farmer. The principal and interest on the bond is a limited obligation payable
	 solely out of the revenue derived from the loan to the beginning farmer and the
	 underlying collateral or other security furnished by or on behalf of the
	 beginning farmer. The principal and interest on the bond does not constitute an
	 indebtedness of the authority or a charge against its general credit or general
	 fund.
General Authority:
SDCL
		1-16E-24.
Law Implemented:
SDCL
		1-16E-24.
Authority bonds not state or subdivision obligation, SDCL
		1-16E-11.