PURPOSE: This rule sets forth the fee structure and the requirements which the applicant must meet to be an eligible borrower for a loan under this program.

1. (1) The minimum face amount of an agricultural development loan is fifteen thousand dollars ($15,000) and the maximum amount may not exceed five hundred thousand dollars ($500,000).
2. (2) The participating lender may charge a nonrefundable application fee of not more than one hundred twenty-five dollars ($125) to defray expenses incurred by the participating lender in processing and administering the application; and to cover all reasonable and customary charges which are permitted by law and are actually paid or incurred by the participating lender, including hazard or mortgage insurance premiums, surveys, title insurance, appraisal fees, abstract and attorney’s fees, recording or registration charges, escrow fees, credit reports and other similar charges.
3. (3) The authority will purchase or take a one hundred percent (100%) participation in each agricultural development loan under the program.
4. (4) The participating lender will collect from the participating borrower(s) and pay over to the authority an authority fee to defray expenses incurred by the authority in processing and administering the Conservation Reserve Enhancement Program (CRP) and the agricultural development loan in an amount as determined by the authority not to exceed a sum equal to two percent (2%) of CRP contract payments up to one hundred thousand dollars ($100,000) and an additional one and one-half percent (1.5%) on all payments in excess of one hundred thousand dollars ($100,000) with a minimum fee of five hundred dollars ($500).
5. (5) To assure compliance with the CRP contract and to provide for necessary annual administrative costs associated with the program, the participating lender will collect from participating borrowers and pay over to the authority a sum equal to two percent (2%) of the CRP contract payments.
6. (6) No agricultural development loan will be made if the proceeds of the loan are insufficient to satisfy debts of the participating borrower(s) as set forth on the debt register in the Agricultural Stabilization and Conservation Service (ASCS) office or if any lienholder of the participating borrower(s) does not consent to the land use agreement.
7. (7) Any agricultural development loan which provides that it is assumable, or which the participating lender intends to permit to be assumed, shall further provide that it is only assumable if approved by the authority and to the extent that the purchaser of the farm including the CRP land and the agricultural development loan meet the requirements set forth in the Act, CRP, the program and these guidelines.
8. (8) At the time of the purchase of an agricultural development loan by the authority, the participating lender and participating borrower(s) shall certify that the participating borrower(s) is (are) in compliance with the CRP contract; that the participating borrower(s) cannot obtain a loan on equivalent terms from conventional farm credit markets or other sources without the purchase or participation of the authority; that the proceeds of the agricultural development loan are sufficient to satisfy all obligations of the participating borrower(s) set forth on the debt register in the ASCS office; that all lienholders will consent to the land use agreement; and that the participating borrower(s) is (are) an individual(s) residing in this state (or that the participating borrower is a firm, partnership, corporation or other entity, with all owners, partners or stockholders being persons residing in this state) owning or operating a farm a portion of which is subject to a CRP contract. AUTHORITY: section 348.075, RSMo 1986.* Original rule filed Aug. 15, 1989, effective Oct. 27, 1989. *Original authority: 348.075, RSMo 1981, amended 1995, 1997.