R51-5-3. Rural Rehabilitation Loan Program Operation

(1) Pursuant to Section 4-19-102, an eligible entity or individual may apply for a loan or a grant to use for any purpose allowed under the January 1975 use agreement between the department and the United States Farm Home Administration, 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. (2) 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. (3) 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. (4) The Executive Committee shall set a limitation on total borrowings by any one entity in policy. (5) With approval from the Executive Committee and in conjunction with the Commissioner, the department 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.