80-12-201. Loan agreements -- general provisions. (1) Each loan approved by the authority for issuance of a bond must include a loan agreement providing a payment schedule that may not exceed 30 years.
     (2) The agreement must specify a reasonable rate of interest, which rate may be a variable rate provided the method of determination is contained in the loan agreement.
     (3) Loans approved by the authority for issuance of a bond may be secured by any liens or collateral the financial institution considers necessary.
     (4) The money received under a loan agreement may be used for:
     (a) acquisition of farm or ranch land;
     (b) a down payment on the acquisition of farm or ranch land; or
     (c) acquisition or construction of depreciable property used in the operation of a farm or ranch.

     History: En. Sec. 5, Ch. 580, L. 1983.