- (1) A financial institution when making a loan to an applicant authorized for loan consideration by the department, may set the rate of interest on its share of a loan. The financial institution may charge a fixed or a variable rate on its share.
- (2) The department shall charge a fixed interest rate on its share of a loan. The rate of interest the department charges on its loan share shall be equal to the federal reserve discount rate on the day the loan closes.
- (3) The effective interest rate to the applicant will be the weighted average based on the respective prorata participation of the financial institution and the department.
Authorizing statute(s): 90-4-104, MCA
Implementing statute(s): 90-4-101, 90-4-104, MCA
History: NEW, 1982 MAR p. 851, Eff. 4/30/82; TRANS, from DNRC, 1996 MAR p. 2863.