The following are requirements for a loan under the agribusiness bonding program:

1. (1) The authority may take security for a loan in the form of a promissory note, security agreement, mortgage, or similar agreement;
2. (2) A loan may not be assumed; and any interest in land, improvements, or depreciable property may not be leased, sold, exchanged, used as a trade-in, used on an equipment-for-hire basis, or otherwise conveyed without the prior written consent of the authority. The authority may not consent to an assumption of its loan or the conveyance of property subject to its mortgage or security agreement unless the purchaser of the property is an eligible applicant for an authority loan; and

3. (3) The eligible applicant, bond purchaser, or lender must pay the following fees to the authority:

   1. (a) With the submission of an application, a nonrefundable fee of two hundred dollars;
   2. (b) On the date of bond issuance, a fee equal to one-eighth of one percent of the bond amount with a five-hundred-dollar minimum;
   3. (c) If the loan is assumed, on the date of assumption, a fee equal to one-sixteenth of one percent of the outstanding bond balance with a three-hundred-dollar minimum;
   4. (d) On the date of bond issuance, a fee equal to one-eighth of one percent of the bond amount; and
   5. (e) On the date of bond issuance, the fees and expenses of bond counsel and the authority's special counsel.

Source: 23 SDR 161, effective April 7, 1997 ; 52 SDR 49, effective November 17, 2025 .

General Authority: SDCL 1-16B-70 .

Law Implemented: SDCL 1-16B-56 , 1-16B-57 , 1-16B-58 (1) .

Prior versions effective: 1997-04-07.