4.14.311    FEES AND TERMS OF LOAN

(1)  If a beginning farmer/rancher meets the loan eligibility requirements as set forth in Title 80, chapter 12, MCA, rules of the authority and IRS rules and regulations, the decision whether to enter into the loan agreement is between the beginning farmer/rancher and the financial institution.   They must agree on terms of the loan such as interest rates, length of loan, down payment, service fees, organization charges and repayment schedule, which may not be any more onerous than that charged to similar customers for similar loans, and take into account the tax-exempt nature of interest on the loan.

(2)  In addition, the authority will receive a non-refundable $50 application fee (submitted by the beginning farmer/rancher with the application)  and a program participation or loan fee not to exceed 1 1/2% of the amount of the loan, however, this fee shall not be less than $500.   The participation fee may be financed with the loan.   The financial institution shall collect the participation fee and remit to the authority at the time of loan closing.

(3)  The authority bond counsel will review each bond for legality and tax exemption.   The authority will pay its bond counsel and other administrative costs from the fees collected from the beginning farmer/rancher.

History: 80-12-103, MCA; IMP, 80-12-103 and 80-12-201, MCA; NEW, 1984 MAR p. 363, Eff. 3/1/84; AMD, 2001 MAR p. 1723, Eff. 9/7/01.