12:07:12:07Impermissible

uses of loan proceeds. The loan proceeds may not be used for the following purposes; (1) Purchase, construction, or renovation of a personal dwelling; (2) Establishment of or participation in a line of credit; (3) Paying off a creditor in excess value of the collateral; (4) Farm machinery, except as needed for the project; (5) Refinancing preexisting and carry-over debt except as provided by this chapter, making past-due payments on land or equipment, paying delinquent taxes, or paying interest on outstanding debt; and (6) Start-up costs, inventory, and working capital.

Source: 17 SDR 141, effective March 25, 1991; 25 SDR 95, effective January 20, 1999; 45 SDR 31, effective September 13, 2018; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.