(a) Loan proceeds under the program may be used for any agriculture-related operating expense, including the purchase or lease of land or fixed asset acquisition or improvement, or for any enterprise based on agriculture as identified in the application, but a loan under this program may be applied to existing debt only when required by the lender to finance the expansion of an eligible project.(b) An applicant or lender may request the Authority to provide a preliminary determination if the anticipated use of the proceeds is a qualified use of proceeds.(c) Any use of loan proceeds that do not comply with these rules or any misrepresentations made to the Authority shall be a basis for default. The lender shall include a provision in the loan that declares a default and requires acceleration of the loan where the applicant uses the proceeds in any manner that would violate the provisions of the Act, these rules or the loan.