4.3.203    CLOSING REQUIREMENTS

(1) A joint bank account may be established at the time the loan funds are disbursed. The project supervisor, or another member of the local loan committee, shall be designated to counter-sign checks drawn on this account by the borrower.

(2) All livestock presently owned and those purchased by the borrower must be listed on the security agreement provided by the department.

(3) All loan security instruments shall be filed appropriately and the borrower must pay all necessary fees.

(a) All livestock shall be identified by the borrowers registered brand, or other markings as approved by the department of agriculture.

(b) All mortgaged property must be kept on the borrowers property, and/or property described within the lease agreement.

(c) At such time as the loan is paid in full, the borrower shall pay any fees necessary to release all related liens.

(4) The department may require insurance coverage on all mortgaged property, resulting production, or offspring.

(5) All mortgaged property to be sold by the borrower, must be sold in the borrower's and the Montana department of agriculture's names. Sale receipts shall then be released in accordance with the loan agreement.

(6) The borrower shall allow representatives of the department of agriculture and the project supervisor to inspect the loan project and facilities upon request. The borrower shall handle the project to the best of his/her ability, and cooperate with the project supervisor's and the Montana department of agriculture's recommended practices and procedures.

History: 80-2-106, MCA; IMP, 80-2-103, MCA; NEW, 1977 MAR p. 942, Eff. 11/26/77; AMD, 2004 MAR p. 1469, Eff. 7/2/04.