R51-5-3. Program Objectives

  (1) The program is available to any entity allowed under the January 1975 Use Agreement, state or federal law, including individual farmers and ranchers or agricultural cooperatives, corporations, or other entities that directly or indirectly provide assistance to such farmers or members of their families.

  (2) The Rural Rehabilitation Loan program 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) Irrigation and Water Conservation Projects

  (b) Grants;

  (i) Youth and Education Grant

  (c) Reserve Fund; and

  (d) Other Rural Rehabilitation Purposes

  (3) Loans shall be for lands within the borders of the State of Utah and any collateral or security for a loan must be located within the State of Utah.

  (4) Such portion of the cost of administration and protection of assets as necessary may be also used by the state for:

  (a) Cost of Administration;

  (b) Protection of the Assets; and

  (c) Temporary investments, annual reports, implementing agreements and other allowed uses.

  (5) The Department may not make a loan authorized under this chapter for a period to exceed 10-years but the loan is renewable. Total borrowings by any one entity shall be limited to no more than $350,000 with each application.

  (6) For the purposes of protecting 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 also operate or lease, if necessary to protect is investment, any property in which it has an interest, or sell or otherwise dispose of such property to recover loaned funds.