(1) The applicant shall provide information about the project, as requested on the application form, in order to allow the department to review the proposed project for compliance with state law. Prior to executing a servicing agreement under ARM 17.85.111, the department shall review each application under ARM Title 17, chapter 4, subchapter 6 to determine if the department's approval of a loan for the project may result in significant effects to the quality of the human environment.

(2) The proposed project or activity must comply with applicable statutory and regulatory requirements protecting the quality of resources such as air, water, land, fish, wildlife, and recreational opportunities.