4.3.604    LIMITATIONS

(1)  Loan amounts shall not exceed $75,000 for any one individual.

(2)  Loans may be renegotiated up to the maximum of $75,000.

(3)  Interest rates for loans shall be established yearly by the director of the Montana department of agriculture.  Loans will bear simple interest charged yearly on the unpaid balance.

(4)  Loan funds shall be used for purposes approved by the department and applicant(s)  shall provide the amount necessary for a down payment as required by the department and use that amount for only the approved purposes.

(5)  Loans may be authorized to finance the following types of property or activities:

(a)  depreciable property and equipment suitable for use in agriculture or agri-business;

(b)  depreciable agricultural improvements which are located on agricultural land;

(c)  annual operating expenses;

(d)  agricultural land; and

(e)  other expenditures for agricultural equipment, property, facilities, or expenses as approved by the department.

(6)  Loans shall not be eligible for financing personal residences, nonfarm vehicles, family-living expenses or other property used for household purposes.

(7)  The repayment period shall be determined by the department prior to closing and shall not exceed the following schedules:

(a)  loans for depreciable agricultural property or equipment shall not exceed seven years;

(b)  loans for depreciable agricultural improvements or agricultural land shall not exceed 10 years; and

(c)  loans for operating expenses will be paid within one year unless first-year operating costs are included in a loan for agricultural property, equipment, improvements, or land in which case the amount for operating expense can be amortized over the repayment period.

History: 80-2-106, MCA; IMP, 80-2-103, MCA; NEW, 1985 MAR p. 1015, Eff. 7/26/85; AMD, 1998 MAR p. 2704, Eff. 10/8/98; AMD, 2000 MAR p. 3332, Eff. 12/8/00; AMD, 2003 MAR p. 215, Eff. 2/14/03; AMD, 2004 MAR p. 1469, Eff. 7/2/04; AMD, 2004 MAR p. 2805, Eff. 11/19/04.