S.D. Admin. R. 12:07:12:04

Current through Register Vol. 51, page 70, December 27, 2024

Section 12:07:12:04 - Eligibility requirements for lender

To be eligible to participate in the rural development loan participation program a lender must be subject to credit examination and supervision either by an agency of the United States or of this state and be in good standing with its licensing authority. Credit unions subject to credit examination and supervision by either the national credit union administration or an agency of this state may be eligible. In addition, the lender must meet one of the following requirements:

(1) Be a local lender who routinely provides loan services to the community in which or near which the project is or will be located; or

(2) Be a lender who is not local, but who maintains an office near enough to the location of the collateral to discharge its loan making and loan servicing responsibilities, who normally makes loans in the geographical region in which the proposed project is located, and who has specific expertise in loans for the proposed project and can provide evidence of such expertise to the office.

S.D. Admin. R. 12:07:12:04

17 SDR 141, effective 3/25/1991.

General Authority: SDCL 38-6-8.1.

Law Implemented: SDCL 38-6-3, 38-6-8.