(1) An applicant for a CRP loan shall request an application form from the individual designated by the board to assist applicants.

(2) An applicant must submit a satisfactorily completed application form with all requested exhibits. If deemed complete, it will be processed. If deemed incomplete, it will be returned to the applicant to be completed as directed.

(3) An applicant must also submit a non-refundable application fee in the amount of $500. This fee may be used toward application processing, title reports, title insurance and other applicable costs.

(4) If the board determines that the application and other documents comply with the rules, the board will approve the loan.

(5) A commitment agreement will be entered into between the board and the applicant by a date certain. The applicant will be required to pay a commitment fee when he returns the executed commitment agreement. In the commitment agreement the applicant must agree to borrow funds if the board is able to provide a specified minimum loan amount and the board agrees to use its best efforts to sell bonds and fund the loan to the applicant.

(a) The commitment fee shall be a commitment amount equal to one percent (l%) of the minimum loan amount set forth in the commitment agreement.

(6) An applicant with an outstanding mortgage or encumbrance on his CRP acres must also arrange to have that lien or encumbrance subordinated to the board's mortgage and security interest, unless the board deems otherwise.