Iowa Admin. Code r. 27-11.28

Current through Register Vol. 47, No.14, January 8, 2025

Rule 27-11.28 - Repayment of loans

(1)Loan period. Each loan made under this chapter shall be for a period not to exceed ten years.

(2)Repayment schedule. Loans shall be paid back to the revolving loan fund in equal yearly installments due March 1 of each year the loan is in effect.

(3)Repayment upon sale of land. Loans made under this program shall come due for payment upon sale of the land on which those practices are established. If the entire balance of the loan is not paid within ten days of the date of sale, a delinquent loan charge shall be applied as provided in subrule 11.28(5).

(4)Interest. The loans shall bear no interest.

(5)Interest on delinquent loans. Interest rate upon loans for which payment is delinquent shall accelerate immediately to the current legal usury limit. This is the maximum rate allowed by Iowa Code section 535.2, subsection 3, paragraph"a, " and it shall be applied to the entire unpaid principal, prorated for the period for which the installment is delinquent.

Iowa Admin. Code r. 27-11.28