§ 17-03-04 — Fund moneys - Eligible uses

1. a. The fund moneys may be used to participate in an interest rate buydown on a
loan to a biodiesel, ethanol, or green diesel production facility or to a value-added
operation for the following eligible uses:
(1) Purchase or construction of real property.
(2) Expansion of facilities.
(3) Purchase or installation of equipment, including a biodigester system.
b. The loan funds may not be used to refinance any existing debt or for the
relocation within this state of the biodiesel, ethanol, or green diesel production
facility or the value-added operation.

2. a. The maximum amount from the fund in the interest rate buydown for a biodiesel,
ethanol, or green diesel production facility may not exceed five hundred thousand
dollars to any single biodiesel, ethanol, or green diesel production facility under
this chapter.
b. Except as provided in subdivision c, the maximum amount from the fund in the
interest rate buydown for a value-added operation may not exceed two hundred
fifty thousand dollars to any single value-added operation under this chapter.
c. If a value-added operation has reached the limit provided for in subdivision b as a
result of any activity other than the purchase or installation of a biodigester, that
operation is entitled to receive from the fund up to two hundred fifty thousand
dollars as an additional interest rate buydown on the operation's purchase or
installation of a biodigester system.
3. The fund participation is limited to the amount required to buy down the interest to five
hundred basis points below the national prime interest rate.
4. The Bank of North Dakota shall adopt rules to implement this chapter.