<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><title></title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s02f46916-03ed-4f1f-89f9-b990fe2038e2P0 { margin-top: 0; margin-bottom: 0; margin-left: 0; margin-right: 0; text-indent: 0.00in; text-align: justify; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; } span.s02f46916-03ed-4f1f-89f9-b990fe2038e2C0 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s02f46916-03ed-4f1f-89f9-b990fe2038e2C0-000000 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s02f46916-03ed-4f1f-89f9-b990fe2038e2C0-000001 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s02f46916-03ed-4f1f-89f9-b990fe2038e2000002 { color: black; background: white; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s02f46916-03ed-4f1f-89f9-b990fe2038e2C0-000003 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s02f46916-03ed-4f1f-89f9-b990fe2038e2P0"><span xml:space="preserve" class="s02f46916-03ed-4f1f-89f9-b990fe2038e2C0">    </span><a href="https://sdlegislature.gov/Rules?Rule=12:21:01:11"><span class="s02f46916-03ed-4f1f-89f9-b990fe2038e2C0-000000">12:21:01:11</span></a><span class="s02f46916-03ed-4f1f-89f9-b990fe2038e2C0-000001">.  South Dakota beginning farmer bond program.</span><span xml:space="preserve" class="s02f46916-03ed-4f1f-89f9-b990fe2038e2C0"> The authority shall enter into a loan agreement with the beginning farmer and assign that loan to the lender. At the same time, the authority shall issue a tax-exempt bond in the amount of the loan and the lender shall purchase that bond, which is used to fund the loan assigned to the lender. The only security for the lender is the underlying security on the assigned loan.</span></p><p dir="ltr" class="s02f46916-03ed-4f1f-89f9-b990fe2038e2P0"><span xml:space="preserve" class="s02f46916-03ed-4f1f-89f9-b990fe2038e2000002"> </span></p><p dir="ltr" class="s02f46916-03ed-4f1f-89f9-b990fe2038e2P0"><span xml:space="preserve" class="s02f46916-03ed-4f1f-89f9-b990fe2038e2C0">    The bond purchaser, after arranging the loan or sales contract, shall obtain from the authority a federal tax-exempt bond in the amount of the loan or the unpaid balance on the sales contract. In the case of a loan, the authority shall lend the amount paid by the bond purchaser for the bond to the beginning farmer and assign the loan and its collateral to the bond purchaser as security for the bond. In the case of a contract sale, the authority shall enter into the contract with the bond purchaser who will receive the bond as evidence of the authority's obligations under the contract. The authority shall then assign the authority's right, title, and interest in the contract to the beginning farmer who shall assume the payment obligations of the authority under the contract.</span></p><p dir="ltr" class="s02f46916-03ed-4f1f-89f9-b990fe2038e2P0"><span xml:space="preserve" class="s02f46916-03ed-4f1f-89f9-b990fe2038e2000002"> </span></p><p dir="ltr" class="s02f46916-03ed-4f1f-89f9-b990fe2038e2P0"><span xml:space="preserve" class="s02f46916-03ed-4f1f-89f9-b990fe2038e2C0">    </span><span class="s02f46916-03ed-4f1f-89f9-b990fe2038e2C0-000001">Source:</span><span xml:space="preserve" class="s02f46916-03ed-4f1f-89f9-b990fe2038e2C0"> 22 SDR 97, effective January 22, 1996</span><span class="s02f46916-03ed-4f1f-89f9-b990fe2038e2C0">; 52 SDR 49, effective November 17, 2025</span><span class="s02f46916-03ed-4f1f-89f9-b990fe2038e2C0">.</span></p><p dir="ltr" class="s02f46916-03ed-4f1f-89f9-b990fe2038e2P0"><span xml:space="preserve" class="s02f46916-03ed-4f1f-89f9-b990fe2038e2C0">    </span><span class="s02f46916-03ed-4f1f-89f9-b990fe2038e2C0-000001">General Authority:</span><span xml:space="preserve" class="s02f46916-03ed-4f1f-89f9-b990fe2038e2C0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=1-16B-70"><span class="s02f46916-03ed-4f1f-89f9-b990fe2038e2C0-000003">1-16B-70</span></a><span class="s02f46916-03ed-4f1f-89f9-b990fe2038e2C0">.</span></p><p dir="ltr" class="s02f46916-03ed-4f1f-89f9-b990fe2038e2P0"><span xml:space="preserve" class="s02f46916-03ed-4f1f-89f9-b990fe2038e2C0">    </span><span class="s02f46916-03ed-4f1f-89f9-b990fe2038e2C0-000001">Law Implemented:</span><span xml:space="preserve" class="s02f46916-03ed-4f1f-89f9-b990fe2038e2C0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=1-16B-1"><span class="s02f46916-03ed-4f1f-89f9-b990fe2038e2C0-000003">1-16B-1</span></a><span xml:space="preserve" class="s02f46916-03ed-4f1f-89f9-b990fe2038e2C0">(3), </span><a href="https://sdlegislature.gov/Statutes?Statute=1-16B-57"><span class="s02f46916-03ed-4f1f-89f9-b990fe2038e2C0-000003">1-16B-57</span></a><span class="s02f46916-03ed-4f1f-89f9-b990fe2038e2C0">.</span></p><p dir="ltr" class="s02f46916-03ed-4f1f-89f9-b990fe2038e2P0"><span xml:space="preserve" class="s02f46916-03ed-4f1f-89f9-b990fe2038e2000002"> </span></p></div></body></html>