4.3.204    LIMITATIONS

(1) The director of the Montana department of agriculture shall establish interest rates for loans yearly. Loans will bear simple interest charged yearly on the unpaid balance. The interest rate on established loans may be reviewed and adjusted to correspond with the established rate at three-year intervals.

(2) No loan shall exceed $3,500 for age nine to 11 and $8,500 for age 12 to 21 for any one individual borrower or $14,000 for any chapter or club. Loans may be renegotiated providing the borrower does not exceed the maximum loan limits at any time.

(3) Applicants may borrow up to 90% of the total funds required for the proposed project.

(4) Repayment schedules may vary, but must not exceed five years for individuals and 10 years for clubs and chapters.

(5) The department of agriculture may immediately terminate a loan agreement if the applicant is unable to fulfill the terms of the loan agreement. In the event that any mortgaged property is sold during the program loan period without prior approval by the department, the balance of the loan may be immediately due and payable.

History: 80-2-106, MCA; IMP, 80-2-103, MCA; NEW, 1977 MAR p. 942, Eff. 11/26/77; AMD, 1984 MAR p. 1366, Eff. 9/14/84; AMD, 2000 MAR p. 3332, Eff. 12/8/00; AMD, 2004 MAR p. 1469, Eff. 7/2/04.