<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.s48cfef62-aa9d-4e1b-a944-ca4d32de440dP0 { 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.s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0-000000 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0-000001 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s48cfef62-aa9d-4e1b-a944-ca4d32de440d000002 { color: black; background: white; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0-000003 { 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="s48cfef62-aa9d-4e1b-a944-ca4d32de440dP0"><span xml:space="preserve" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0">    </span><a href="https://sdlegislature.gov/Rules?Rule=12:21:01:12"><span class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0-000000">12:21:01:12</span></a><span class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0-000001">.  Application procedures.</span><span xml:space="preserve" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0"> </span><span xml:space="preserve" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0">After identifying a lender and receiving the lender's approval, the applicant </span><span xml:space="preserve" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0">may apply for an authority loan with </span><span class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0">that lender on forms provided by the authority</span><span xml:space="preserve" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0">. </span><span class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0">Prior to applying to the authority, the applicant and lender</span><span xml:space="preserve" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0"> must agree on </span><span xml:space="preserve" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0">the </span><span xml:space="preserve" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0">terms of the loan, </span><span xml:space="preserve" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0">including the </span><span xml:space="preserve" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0">interest rate, length of loan, down payment, service fees, origination charges, and repayment schedule. The </span><span xml:space="preserve" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0">loan </span><span xml:space="preserve" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0">terms may </span><span class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0">not be</span><span xml:space="preserve" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0"> more onerous than those charged to similar customers for similar loans, taking into account the tax-exempt nature of the interest on the loan.</span></p><p dir="ltr" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dP0"><span xml:space="preserve" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440d000002"> </span></p><p dir="ltr" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dP0"><span xml:space="preserve" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0">    Following approval by the lender, the loan application must be submitted to the authority for its review and approval. The authority's review </span><span xml:space="preserve" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0">must be based on the requirements of SDCL chapter </span><a href="https://sdlegislature.gov/Statutes?Statute=1-16B"><span class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0-000003">1-16B</span></a><span xml:space="preserve" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0"> and this article, and must</span><span xml:space="preserve" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0"> include whether:</span></p><p dir="ltr" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dP0"><span xml:space="preserve" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440d000002"> </span></p><p dir="ltr" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dP0"><span xml:space="preserve" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0">    (1)  The loan applicant is a qualified beginning farmer;</span></p><p dir="ltr" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dP0"><span xml:space="preserve" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0">    (2)  The loan proceeds </span><span xml:space="preserve" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0">are to </span><span xml:space="preserve" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0">be used for a qualified purpose by a qualified borrower under SDCL chapter </span><a href="https://sdlegislature.gov/Statutes?Statute=1-16B"><span class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0-000003">1-16</span><span class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0-000003">B</span></a><span xml:space="preserve" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0">, this article, and </span><span xml:space="preserve" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0">26 U.S.C. </span><span xml:space="preserve" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0">§§ 141 and 146 </span><span class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0">(December 31, 2024)</span><span class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0">, relating to private activity bonds;</span></p><p dir="ltr" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dP0"><span xml:space="preserve" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0">    (3)  The terms of the loan comply with this article; and</span></p><p dir="ltr" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dP0"><span xml:space="preserve" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0">    (4)  The lender meets the definition of a participating lender or bond purchaser.</span></p><p dir="ltr" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dP0"><span xml:space="preserve" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440d000002"> </span></p><p dir="ltr" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dP0"><span xml:space="preserve" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0">    As part of the review, the authority may require the beginning farmer to submit appraisals on part or all of the property being financed by the loan or to submit other documents and information necessary to complete the review of the loan application.</span></p><p dir="ltr" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dP0"><span xml:space="preserve" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440d000002"> </span></p><p dir="ltr" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dP0"><span xml:space="preserve" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0">    </span><span xml:space="preserve" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0">Following </span><span xml:space="preserve" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0">the authority's </span><span class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0">approval and issuance of the bond, the authority shall enter into a loan agreement with the beginning farmer and then assign the loan to the lender. The authority may charge fees as needed to defray its costs for processing the loan and bond.</span></p><p dir="ltr" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dP0"><span xml:space="preserve" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440d000002"> </span></p><p dir="ltr" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dP0"><span xml:space="preserve" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0">    </span><span class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0-000001">Source:</span><span xml:space="preserve" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0"> 22 SDR 97, effective January 22, 1996; 23 SDR 91, effective December 9, 1996; 35 SDR 67, effective September 30, 2008</span><span class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0">; 52 SDR 49, effective November 17, 2025</span><span class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0">.</span></p><p dir="ltr" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dP0"><span xml:space="preserve" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0">    </span><span class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0-000001">General Authority:</span><span xml:space="preserve" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=1-16B-70"><span class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0-000003">1-16B-70</span></a><span class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0">.</span></p><p dir="ltr" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dP0"><span xml:space="preserve" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0">    </span><span class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0-000001">Law Implemented:</span><span xml:space="preserve" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=1-16B-1"><span class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0-000003">1-16B-1</span></a><span xml:space="preserve" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0">(3), </span><a href="https://sdlegislature.gov/Statutes?Statute=1-16B-57"><span class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0-000003">1-16B-57</span></a><span class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dC0">.</span></p><p dir="ltr" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440dP0"><span xml:space="preserve" class="s48cfef62-aa9d-4e1b-a944-ca4d32de440d000002"> </span></p></div></body></html>