Utah Admin. Code R51-5-3 - Rural Rehabilitation Loan Program Operation

(1) The program is available to any entity allowed under the January 1975 use agreement between the department and the United States Farm Home Administration or state or federal law, including individual farmers and ranchers or agricultural cooperatives, corporations, or other entities that directly or indirectly provide assistance to farmers or members of their families.

(2) Borrowers may use funds for any purpose allowed under the January 1975 use agreement, including for one or more of the following Rural Rehabilitation purposes:

(a) loans, such as:

(i) real estate loans;

(ii) farm operating loans;

(iii) youth loans;

(iv) education loans; or

(v) loans for irrigation and water conservation projects;

(b) grants, such as youth and education grants;

(c) reserve funds; and

(d) other rural rehabilitation purposes.

(3) Borrowers may use loans for the purchase of land within the borders of Utah, and any collateral or security for a loan must be located within Utah.

(4) The department may use a portion of program funds for:

(a) costs of administration;

(b) protection of the assets; and

(c) temporary investments, annual reports, implementing agreements, and other allowed uses under Title 4, Chapter 19, Rural Rehabilitation.

(5) The department may not make a loan authorized under Title 4, Chapter 19, Rural Rehabilitation, for a period to exceed 10-years . Loans are renewable. A limitation on total borrowings by any one entity shall be set in policy approved by the Executive Committee.

(6) To protect its interest in a defaulting loan, the Board may use either appropriated or repayment monies to purchase or otherwise obtain property in which the Board has acquired a security interest by any mortgage, trust deed, pledge, assignment, judgment, or other means at any execution, bankruptcy, or foreclosure sale.

(7) The Board may operate or lease, if necessary to protect an investment, any property in which it has an interest, or sell or otherwise dispose of such property to recover loaned funds.

(8) The department, through the Executive Committee or Board and in conjunction with the Commissioner, may adopt additional policies and procedures as necessary to carry out the purposes of the Rural Rehabilitation Loan program. These policies and procedures may be in addition to those outlined in this rule.

Notes

Utah Admin. Code R51-5-3

Adopted by Utah State Bulletin Number 2018-11, effective 5/2/2018 Amended by Utah State Bulletin Number 2022-04, effective 2/1/2022