- (1) A joint bank account with the borrower and the department may be established at the time the loan funds are disbursed. A member of the local loan committee or other representative of the Montana department of agriculture may be designated to countersign checks drawn on this account by the borrower.
- (2) The department may require insurance coverage on all mortgaged or otherwise secured property.
- (3) The department may require an appraisal from a qualified appraiser on property to be financed or used to secure a loan or to determine the value of the applicant's assets.
- (4) The department may loan up to 80% of the value of secured property. The department may require collateral in addition to property being financed with loan funds.
- (5) The department shall require a first mortgage position on any land being mortgaged.
- (6) The applicant(s) shall provide title insurance in the name of the department for any land to be purchased with loan funds.
- (7) The borrower(s) and guarantor(s) shall sign all necessary documents as required by the department and all documents requiring filing shall be properly filed by the department.
- (8) The department may require the borrower to register a brand with the Montana department of livestock for the purpose of recording a lien on the brand and may require secured livestock to be branded.
- (9) The borrower shall pay fees required to file, continue, or release financing statements, mortgages, and brand liens.
- (10) A representative of the Montana department of agriculture may at a reasonable time visit personally with applicant(s) for the purpose of verifying the applicant's collateral, qualifications and abilities to conduct the proposed agricultural enterprise.
- (11) The borrower shall allow members of the local loan committee and the department to inspect collateral or loan-related records upon request at any reasonable time during the repayment period.
- (12) The borrower shall care for collateral and conduct agricultural operations in accordance with good and recognized agricultural practices.
Authorizing statute(s): 80-2-106, MCA
Implementing statute(s): 80-2-103, MCA
History: NEW, 1985 MAR p. 1015, Eff. 7/26/85; AMD, 1998 MAR p. 2704, Eff. 10/8/98; AMD, 2004 MAR p. 1469, Eff. 7/2/04.