(1) Applicants are eligible to apply for a loan to finance rangeland improvements to be constructed, developed, and operated in Montana according to 76-14-113, MCA.

(2) Applications must be:

(a) initiated through the local district;

(b) completed using the Range Improvement Loan Application, available online at http://dnrc.mt.gov/divisions/cardd or upon request;

(i) terms and conditions of the loan can be found in application;

(c) accompanied by a resource conservation plan, which may be prepared in consultation with the Natural Resources Conservation Service (NRCS), and verified by the board;

(d) the application must be submitted to the board at least two weeks prior to their next scheduled meeting.

(3) During the application review process:

(a) the board must consider each application individually using the criteria outlined in 76-14-114, MCA;

(b) the board must act on the application at the first board meeting following receipt of the application;

(c) the board must notify applicants of action taken within five business days;

(d) the board must forward the application with recommendations to the department within five business days of board recommendation and approval;

(e) CARRD will organize and review the application for financial clarity and completeness prior to committee review;

(f) the application will be reviewed by the committee;

(g) the committee shall make recommendations to the department;

(h) the department director makes final approval or disapproval of applications recommended by the committee and selects the loan recipients; and

(i) applicants shall be notified within five business days of a decision by the department director.

(4) Upon final approval by the department, applicants will be contacted by CARDD for loan closing instructions.

(5) CARDD is responsible for the proper execution of security instruments and the filing of necessary documents, including, but not limited to the following terms and conditions:

(a) annual repayment installments can be spread over a maximum of ten years;

(b) prepayments may be made:

(i) in any amount;

(ii) at any time; and

(iii) will be applied to accrued interest first with the balance of the payment being applied to the principal;

(c) prepayments will not affect the obligation of the borrower to pay the remaining installments as scheduled;

(d) any provision of the loan agreement may be modified or supplemented by written agreement between the borrower and the department on or after the date of the original agreement;

(e) the interest rate and maximum loan amount charged for loans will be recommended by the committee and approved by the director annually no later than July 1;

(i) the determination of the interest rate will be based on the conventional agriculture loan rates of the current year.

(f) all costs incident to the loan must be paid by the borrower, including, but not limited to:

(i) title Insurance;

(ii) filing fees; and

(iii) administrative fees;

(A) an administrative fee of one percent of the total loan, in addition to the interest rate, will be assessed and due at the time of loan closing;

(g) loans must be secured by a mortgage on real property;

(i) the mortgage value required for security of the loan will be determined by the department from a current average per acre of land prices in the area of the approved application;

(A) the financial disclosures required for the loan application are submitted separately, and

(B) financial information submitted to the department as a requirement of the loan application process will be held in strict confidence by the department and will not be subject to public review;

(ii) real estate used as security must have access from a public road.