348.412. Use of loan proceeds--eligibility--rules.
Use of loan proceeds--eligibility--rules.
348.412. 1. Eligible borrowers:
(1) Shall use the proceeds of the agricultural business developmentloan to acquire agricultural property; and
(2) May not finance more than ninety percent of the anticipated costof the project through the agricultural business development loan.
2. The project shall have opportunities to succeed in thedevelopment, expansion and operation of businesses involved in adding valueto, marketing, exporting, processing, or manufacturing agriculturalproducts that will benefit the state economically and socially throughdirect or indirect job creation or job retention.
3. The authority shall promulgate rules establishing eligibilitypursuant to the provisions of sections 348.400 to 348.415, taking intoconsideration:
(1) The eligible borrower's ability to repay the agriculturalbusiness development loan;
(2) The general economic conditions of the area in which theagricultural property will be located;
(3) The prospect of success of the particular project for which theloan is sought; and
(4) Such other factors as the authority may establish.
4. The authority may promulgate rules to provide for:
(1) The requirement or nonrequirement of security or endorsement andthe nature thereof;
(2) The manner and time or repayment of the principal and interest;
(3) The maximum rate of interest;
(4) The right of the eligible borrower to accelerate payments withoutpenalty;
(5) The amount of the guaranty charge;
(6) The effective period of the guaranty;
(7) The percent of the agricultural business development loan, not toexceed fifty percent, covered by the guaranty;
(8) The assignability of agricultural business development loans bythe eligible lender;
(9) Procedures in the event of default on an agricultural businessdevelopment loan;
(10) The due diligence effort on the part of eligible lenders forcollection of guaranteed loans;
(11) Collection assistance to be provided to eligible lenders; and
(12) The extension of the guaranty in consideration of duty in thearmed forces, unemployment, natural disasters, or other hardships.
(L. 1997 H.B. 557, A.L. 2004 S.B. 740, et al.)*Rulemaking authority, effective when, null and void, when, see RSMo 348.426.