PURPOSE: This rule sets forth the procedures for the approval of loans to be purchased under this program.

1. (1) A participating lender and participating borrower(s) will complete and forward the application to the authority. The application will provide information on the use of loan proceeds, current Conservation Reserve Enhancement Program (CRP) contract(s), approval of the conservation plan, compliance with the CRP contract(s), the CRP payment schedule, previous bankruptcies (if any), liens (if any), loan defaults or delinquencies (if any), loans potentially subject to CRP contract payments offset and authorization to review and copy the debt register pertaining to the participating borrower(s) at the Agricultural Stabilization and Conservation Service (ASCS) office.
2. (2) Upon receipt of the executed participating borrower documents, the authority shall determine whether the participating borrower(s) and the participating lender qualify under the Act, and whether the loan constitutes an agricultural development loan under the Act. Thereafter, the authority will deliver to the participating borrower(s) and the participating lender a conditional approval describing the terms of the agricultural development loan proposed to be purchased by the authority, subject to the availability of bond proceeds.
3. (3) Following receipt of the conditional approval and in accordance with its terms, the participating lender shall deliver the executed participating lender documents to the authority.
4. (4) Upon receipt of the proposal to sell, the authority will secure the execution of the successor-in-interest agreement by the Commodity Credit Corporation (CCC) which provides that the authority will succeed to the interest of the participating borrower(s) to the CRP contract and shall execute, as required, the participating lender documents.
5. (5) Upon approval of the State Agricultural Stabilization and Conservation Committee, the authority shall establish the loan purchase date. 2 CSR 100-3
6. (6) On the loan purchase date, the authority will sell the bond and direct the participating lender to fund the agricultural development loan. In addition, on the loan purchase date, the authority will simultaneously assign and deliver the note, the loan and security agreement, the guaranty and the land use agreement to the participating lender as original purchaser of the bond.

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.