Montana Code 80-12-201. Loan agreements — general provisions
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.
Terms Used In Montana Code 80-12-201
- Authority: means the department of agriculture provided for in 2-15-3001. See Montana Code 80-12-102
- Property: means real and personal property. See Montana Code 1-1-205
- Variable Rate: Having a "variable" rate means that the APR changes from time to time based on fluctuations in an external rate, normally the Prime Rate. This external rate is known as the "index." If the index changes, the variable rate normally changes. Also see Fixed Rate.
(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 downpayment on the acquisition of farm or ranch land;
(c)acquisition or construction of depreciable property used in the operation of a farm or ranch; or
(d)production of energy using an alternative renewable energy source as defined in 15-6-225.