22-2732 LOANS FROM FUND -- APPLICATION -- APPROVAL -- REPAYMENT.
AGRICULTURE AND HORTICULTURE
CHAPTER 27
SOIL CONSERVATION DISTRICTS
22-2732. Loans from fund -- Application -- Approval -- Repayment. (1) Eligible applicants may file an application with the local soil conservation district or the state soil and water conservation commission for a loan from the fund for the purpose of financing conservation improvement cost. Such application shall be filed in such a manner and shall be in such form, and be accompanied by such information as may be prescribed by the commission. Any such application filed with the district or the commission under the provisions of this chapter shall:
(a) Describe the nature and purposes of the improvements or projects;
(b) Set forth or be accompanied by a conservation plan approved by the local soil conservation district or the commission that identifies the conservation improvements, or projects, together with such technical and economic feasibility data and estimated costs as may be required by the commission;
(c) State whether money other than that for which application is made under this chapter will be used for improvement costs, and whether such money is available or has been sought for this purpose;
(d) Show that the applicant holds or can acquire title to all lands or has necessary easements and rights-of-way for the improvements; and
(e) Show the proposed project is feasible from a technical standpoint and economically justified.
(2) The local soil conservation districts and the commission shall keep each other informed of applications received. Within sixty (60) days of receipt of an application, the local soil conservation district or the commission shall review and evaluate, and if it deems necessary, investigate aspects of the proposed improvements. As part of such investigation, the district or the commission shall determine whether the plan for development of the conservation improvements is satisfactory. If the district or the commission determines the plan is unsatisfactory, it shall return the application to the applicant and may make such recommendations to the applicant as are considered necessary to make the plan satisfactory. If the district or the commission determines the plan and application are satisfactory, it shall be considered for funding.
(3) The commission may approve a loan for conservation improvements if after review, evaluation and investigation if necessary, it finds that:
(a) The applicant is qualified and responsible;
(b) There is reasonable assurance that the borrower can repay the loan; and
(c) That money in the resource conservation and rangeland development fund is available for the loan.
(4) If the commission approves a loan, the applicant shall execute a promissory note for repayment to the account of money loaned therefrom, together with interest not to exceed six percent (6%) annually as determined by the commission. The note shall further provide that repayment of the loan, together with interest thereon, shall commence not later than two (2) full years from the date the note is signed. Repayment shall be completed within the time period specified by the commission not to exceed fifteen (15) years, except that the commission may extend the time for making repayment in event of emergency or hardship. Such agreement shall also provide for such assurance of, and security for, repayment of the loan as are considered necessary by the commission.
(5) Upon approval of the loan and securing all necessary documents, the commission will make available, in approved form, project or contract funding.
(6) If an applicant fails to comply with the repayment contract, the interest in the improvement may be conveyed to a successor upon approval by the commission, which may contract with the qualified successor in interest of the original obligor for repayment of the loan, together with interest thereon, and for succession to its rights and obligation in any contract with the commission.