17.85.114 LOAN TERMS AND CONDITIONS
(1) The repayment period of a loan may be agreed upon by the borrower and the department, but may not exceed the period set forth in Title 75, chapter 25, part 1, MCA.
(2) A borrower shall use the money obtained from a loan made under the Act and these rules only for the purposes described in the loan application. A borrower shall implement a loan project within the time specified in the loan documents unless the department grants a written extension.
(3) The department may not issue a loan unless the department or its contractor determines that the borrower has the capacity to repay the loan.
(4) The department shall set the loan interest rate annually in January after evaluating:
(a) current commercial interest rates for similar loans;
(b) administrative costs of the program, including processing and evaluation costs;
(c) loan delinquency and default rates;
(d) the legislature's requirements for a low interest rate and that the rate be at least 1%; and
(e) any other factor the department determines appropriate.
History: 75-25-102, MCA; IMP, 75-25-102, MCA; NEW, 2003 MAR p. 233, Eff. 2/14/03; AMD, 2006 MAR p. 3075, Eff. 12/22/06; AMD, 2013 MAR p. 670, Eff. 4/26/13.