Substitution of collateral and transfer of property

12:21:01:18. Substitution of collateral and transfer of property. Equipment and other depreciable property may be exchanged or traded for similar property, and other property such as breeding livestock may be added or substituted as collateral at the discretion of the lender without the prior approval of the authority. The benefits of the loan made at the tax-exempt rate from the proceeds of an authority bond must remain with the qualified beginning farmer, and a person to whom property is traded or otherwise transferred may not obtain the benefits of the authority loan. Source: 22 SDR 97, effective January 22, 1996; 52 SDR 49, effective November 17, 2025. General Authority: SDCL 1-16B-70. Law Implemented: SDCL 1-16B-1(3), 1-16B-57.