Missouri § 348.412 - Use of loan proceeds — eligibility — rules.

§ 348.412. Use of loan proceeds — eligibility — rules.

1.  Eligible borrowers:

(1)  Shall use the proceeds of the agricultural business development loan to acquire agricultural property or for the expansion, acquisition, construction, improvement, or rehabilitation of a qualifying agribusiness; and

(2)  May not finance more than ninety percent of the anticipated cost of the project through the agricultural business development loan.

2.  The project shall have opportunities to succeed in the development, expansion and operation of businesses involved in adding value to, marketing, exporting, processing, or manufacturing agricultural products that will benefit the state economically and socially through direct or indirect job creation or job retention.

3.  The authority shall promulgate rules establishing eligibility pursuant to the provisions of sections 348.400 to 348.415, taking into consideration:

(1)  The eligible borrower's ability to repay the agricultural business development loan;

(2)  The general economic conditions of the area in which the agricultural property will be located;

(3)  The prospect of success of the particular project for which the loan 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 and the 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 without penalty;

(5)  The amount of the guaranty charge;

(6)  The effective period of the guaranty;

(7)  The percent of the agricultural business development loan, not to exceed fifty percent, covered by the guaranty;

(8)  The assignability of agricultural business development loans by the eligible lender;

(9)  Procedures in the event of default on an agricultural business development loan;

(10)  The due diligence effort on the part of eligible lenders for collection of guaranteed loans;

(11)  Collection assistance to be provided to eligible lenders; and

(12)  The extension of the guaranty in consideration of duty in the Armed Forces, unemployment, natural disasters, or other hardships.

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(L. 1997 H.B. 557, A.L. 2004 S.B. 740, et al., A.L. 2011 S.B. 161)