Issuance of bond. The authority may not issue a bond for the purpose of financing a project for a specific applicant unless, before its issuance, the authority has conducted a public hearing conforming to the applicable requirements of 26 U.S.C. § 147(f)(2)(B) (December 31, 2024). Upon receipt of a completed application and declaration of official intent to proceed with the issuance of the bond by the authority, the commisisoner shall set a date, time, and place for the hearing. The commissioner shall publish notice of hearing at least seven days before the date of the hearing in a newspaper of general circulation available to residents in the county where the project is located. The notice must include the date, time, and place of the hearing, the means by which interested parties may participate electronically, the name of the applicant, and a general description of the project.

If a local hearing is requested, the authority may cancel the previously scheduled hearing. The commissioner shall set a date, time, and place for a local hearing and publish notice of the hearing in the local area as provided in this section. The date, time, and place for the local hearing must be reasonably convenient to persons affected by the project. Public hearings may be conducted by a board member, appointee, or employee of the authority, or another qualified hearing officer. The commissioner shall provide a means by which an interested party may participate electronically.

The authority may not issue a bond for the purpose of financing a project by a specific applicant unless, before the issuance, the Governor or another elected official of the state who is designated by the Governor, approves the issuance of the bond. Following the public hearing, the authority shall send to the Governor's office, or to the office of the designated official, a statement describing each bond or series of bonds that it proposes to issue, along with a summary of the public comments received.

Following approval of the loan by the authority and upon completion of a public hearing and approval of the bond issuance by the Governor or another designated state official, the authority shall issue a bond, to be purchased by the lender, in the amount and fitting the terms of the loan to the applicant. The principal and interest on the bond is a limited obligation payable solely out of the revenue derived from the loan to the beginning farmer and the underlying collateral or other security furnished by or on behalf of the beginning farmer. The principal and interest on the bond does not constitute an indebtedness of the authority or a charge against its general credit or general fund.

Source: 22 SDR 97, effective January 22, 1996; 23 SDR 91, effective December 9, 1996; 35 SDR 67, effective September 30, 2008 ; 52 SDR 49, effective November 17, 2025 .

General Authority: SDCL 1-16B-70 .

Law Implemented: SDCL 1-16B-1 (3), 1-16B-57 .

Prior versions effective: 2008-09-30.