(1) Each loan approved by the authority for issuance of a bond must include a loan agreement providing a payment schedule that may not exceed 30 years.
(2) The agreement must specify a reasonable rate of interest, which rate may be a variable rate provided the method of determination is contained in the loan agreement.
(3) Loans approved by the authority for issuance of a bond may be secured by any liens or collateral the financial institution considers necessary.
(4) The money received under a loan agreement may be used for:
(a) acquisition of farm or ranch land;
(b) a downpayment on the acquisition of farm or ranch land;
(c) acquisition or construction of depreciable property used in the operation of a farm or ranch; or
(d) production of energy using an alternative renewable energy source as defined in 15-6-225.