1. (1) Annually, the commission shall allocate funds appropriated for projects that further the objectives of the ARDL program referenced in Subsection 4-18-106(4).

2. (2) A loan applicant shall:

   1. (a) submit a complete application to the ARDL Program Manager through their conservation district for review;
   2. (b) comply with district, zone, and commission application procedures; and
   3. (c) be subject to credit analysis and collateral valuation as required by the commission, including repayment capability, past and current financial holdings, fiscal obligations, and debt history.

3. (3) The UCC subcommittee shall:

   1. (a) review applications for funding availability, including if the application exceeds loan limits established by commission policy;

   2. (b) if requests exceed available funds, then they may rate and prioritize applications according to:

      1. (i) the quality of improvement projects;
      2. (ii) the improvements sought by the commission; and
      3. (iii) rating and approval information from CD boards.
4. (4) The commission will award loan contracts upon receipt of executed loan documents, which may include a promissory note and other documents necessary to perfect liens on required security.

5. (5) If available ARD Funds are $3,500,000 or less on the commission's approval date:

   1. (a) total borrowings by one entity may not exceed $250,000; and
   2. (b) available ARD Funds are based on the current financial statement the department publishes.

6. (6) The commission may:

   1. (a) charge an applicant a loan or technical assistance fee if proposed projects include a complex technical issue; and
   2. (b) require designated personnel to supervise a project.

7. (7) A contract with loan recipient is based on repayment ability or defined collateral and shall include a loan repayment schedule according to the agreed interest rates and related fiscal conditions. The ARDL Program Manager may:

   1. (a) acquire an appraisal or estimate of collateral value; and
   2. (b) obtain security or collateral to satisfy the contract until the recipient pays the agreed amount.

8. (8) The commission shall set the interest rates in policies and procedures. The commission may recalculate interest rates based on:

   1. (a) interest rates other agricultural lenders charge;
   2. (b) economic factors such as inflation, weather, and natural disasters; or
   3. (c) a recommendation from program staff.

9. (9) The commission may:

   1. (a) charge a percentage of loan disbursement as an administrative fee; and
   2. (b) require a fee if the balance of available ARD Funds is $3,500,000 or less.
10. (10) Designated personnel shall inspect and certify a project funded by a loan to ensure compliance with contractual provisions.

11. (11) Under the direction of the commission, the ARDL Program Manager shall:

    1. (a) manage the program;
    2. (b) interpret guidelines;
    3. (c) administer record-keeping operations;
    4. (d) research financial collateral security information;
    5. (e) process and service contracts associated with program functions;
    6. (f) recommend loan approvals to the commission;
    7. (g) analyze resource improvement and management plans; and
    8. (h) administer loan servicing and collection activities.

KEY: loans, agricultural grants, ARDL, emergency loans

Date of Last Change: May 8, 2026

Notice of Continuation: May 14, 2024

Authorizing, and Implemented or Interpreted Law: 4-18-105