- (1) Loan amounts shall not exceed $75,000 for any one individual.
- (2) Loans may be renegotiated up to the maximum of $75,000.
- (3) Interest rates for loans shall be established yearly by the director of the Montana department of agriculture. Loans will bear simple interest charged yearly on the unpaid balance.
- (4) Loan funds shall be used for purposes approved by the department and applicant(s) shall provide the amount necessary for a down payment as required by the department and use that amount for only the approved purposes.
(5) Loans may be authorized to finance the following types of property or activities:
- (a) depreciable property and equipment suitable for use in agriculture or agri-business;
- (b) depreciable agricultural improvements which are located on agricultural land;
- (c) annual operating expenses;
- (d) agricultural land; and
- (e) other expenditures for agricultural equipment, property, facilities, or expenses as approved by the department.
- (6) Loans shall not be eligible for financing personal residences, nonfarm vehicles, family-living expenses or other property used for household purposes.
(7) The repayment period shall be determined by the department prior to closing and shall not exceed the following schedules:
- (a) loans for depreciable agricultural property or equipment shall not exceed seven years;
- (b) loans for depreciable agricultural improvements or agricultural land shall not exceed 10 years; and
- (c) loans for operating expenses will be paid within one year unless first-year operating costs are included in a loan for agricultural property, equipment, improvements, or land in which case the amount for operating expense can be amortized over the repayment period.
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, 2000 MAR p. 3332, Eff. 12/8/00; AMD, 2003 MAR p. 215, Eff. 2/14/03; AMD, 2004 MAR p. 1469, Eff. 7/2/04; AMD, 2004 MAR p. 2805, Eff. 11/19/04.