S.D. Admin. R. 12:07:20:04

Current through Register Vol. 51, page 71, January 6, 2025

Section 12:07:20:04 - Eligibility requirements for applicants

To be eligible for a stock purchase guaranty loan, an applicant must meet the following requirements:

(1) If the applicant is an individual, the applicant must meet the following requirements:

(a) Be age 18 or older;

(b) Have principal residence and the majority of the farm or ranch operation located in South Dakota;

(c) Be a resident of this state at the time of loan closing;

(d) Have derived at least 60 percent of all gross income in the last tax year from farming or ranching. Applications not meeting this qualification may be accepted only if a waiver is obtained from the secretary. The secretary may issue a waiver for extraordinary circumstances such as illness or enrollment in a higher education institution or postsecondary technical institute or vocational school; and

(e) Be creditworthy according to the standards of the lender.

(2) If the applicant is a cooperative, corporation, partnership, or other legal entity, it must meet the following requirements;

(a) Be composed entirely of farmers or ranchers who meet the criteria of subdivisions (1)(a) to (1)(e), inclusive, of this section; or

(b) Have the majority of memberships and stock in the entity owned by farmers or ranchers who meet the criteria of subdivisions (1)(a) to (1)(e), inclusive, of this section, with other members or stockholders furnishing their proportionate share of the costs; and

(3) Co-applicants must meet the same criteria as the applicants in the applicable category.

S.D. Admin. R. 12:07:20:04

25 SDR 95, effective 1/20/1999; 28 SDR 119, effective 3/5/2002; 29 SDR 34, effective 9/18/2002.

General Authority: SDCL 38-6-8.1.

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