4.3.603    CLOSING REQUIREMENTS

(1)  A joint bank account with the borrower and the department may be established at the time the loan funds are disbursed.  A member of the local loan committee or other representative of the Montana department of agriculture may be designated to countersign checks drawn on this account by the borrower.

(2)  The department may require insurance coverage on all mortgaged or otherwise secured property.

(3)  The department may require an appraisal from a qualified appraiser on property to be financed or used to secure a loan or to determine the value of the applicant's assets.

(4)  The department may loan up to 80% of the value of secured property.  The department may require collateral in addition to property being financed with loan funds.

(5)  The department shall require a first mortgage position on any land being mortgaged.

(6)  The applicant(s)  shall provide title insurance in the name of the department for any land to be purchased with loan funds.

(7)  The borrower(s)  and guarantor(s)  shall sign all necessary documents as required by the department and all documents requiring filing shall be properly filed by the department.

(8)  The department may require the borrower to register a brand with the Montana department of livestock for the purpose of recording a lien on the brand and may require secured livestock to be branded.

(9)  The borrower shall pay fees required to file, continue, or release financing statements, mortgages, and brand liens.

(10)  A representative of the Montana department of agriculture may at a reasonable time visit personally with applicant(s)  for the purpose of verifying the applicant's collateral, qualifications and abilities to conduct the proposed agricultural enterprise.

(11)  The borrower shall allow members of the local loan committee and the department to inspect collateral or loan-related records upon request at any reasonable time during the repayment period.

(12)  The borrower shall care for collateral and conduct agricultural operations in accordance with good and recognized agricultural practices.

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, 2004 MAR p. 1469, Eff. 7/2/04.