The authority may loan funds to a borrower under the Special
Loan Program if the borrower's engages in an agricultural operation in this
(a) The authority has the sole
discretion determine if a borrower's proposed project may be financed with
funds from the Special Loan Program.
(b) Applicants are subject to a $50 loan
application fee for each application submitted.
(c) All borrowers seeking loans under this
rule are subject to credit checks by the authority.
(d) All structures proposed to be built with
funds loaned under this rule must meet certain standard criteria as determined
by the authority and all building plans for any proposed project must be
approved by an authority representative prior to award of a loan pursuant to
(e) The amount of a
loan made under this rule is an amount negotiated and mutually agreed to by the
authority and a borrower.
inspection of applicant's agricultural operation by an authority representative
is required prior to loan approval.
(g) The terms of a loan made pursuant to this
rule (i.e., the interest rate on borrowed funds, the loan repayment period, and
the amount of the loan) vary on a project-by-project basis. The authority
reserves the right to determine the terms of a loan made under this
(g) All borrowed amounts must
be fully collateralized.
loans issued pursuant to this rule require personal guaranty by an individual
with sufficient assets to fully satisfy the borrowed amount in the event of
(j) The authority reserves
the right to deny any loan application.
Admin. Code r.
Administrative Monthly Volume XXXV, Issue No. 07, April 28, 2017,
Author: Alabama Agricultural Development
Code of Ala.