HF 497

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to capital improvements; authorizing the issuance of state bonds;
appropriating money to the Rural Finance Authority for loan participation.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text begin APPROPRIATION.
new text end

new text begin $....... is appropriated from the bond proceeds fund to the Rural Finance Authority
to purchase participation interests in or to make direct agricultural loans to farmers
under Minnesota Statutes, chapter 41B. This appropriation is for the beginning farmer
program under Minnesota Statutes, section 41B.039, the loan restructuring program under
Minnesota Statutes, section , the seller-sponsored program under Minnesota
Statutes, section , the agricultural improvement loan program under Minnesota
Statutes, section 41B.043, and the livestock expansion loan program under Minnesota
Statutes, section . All debt service on bond proceeds used to finance this
appropriation must be repaid by the Rural Finance Authority under Minnesota Statutes,
section 16A.643. Loan participations must be priced to provide full interest and principal
coverage and a reserve for potential losses.
new text end

Sec. 2. new text begin BOND SALE.
new text end

new text begin To provide the money appropriated in this act from the bond proceeds fund, the
commissioner of finance shall sell and issue bonds of the state in an amount up to $....... in
the manner, upon the terms, and with the effect prescribed by Minnesota Statutes, sections
16A.631 to 16A.675, and by the Minnesota Constitution, article XI, sections 4 to 7.
new text end

Sec. 3. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 and 2 are effective the day following final enactment.
new text end