Minnesota Administrative Rules

1651.0011 APPLICABILITY AND PURPOSE.

Subpart 1.

Applicability.

Parts 1651.0011 to 1651.0101 establish the criteria and procedures to be used by the RFA in administering the seller-sponsored loan participation program authorized by Minnesota Statutes, chapter 41B.

Subp. 2.

Purpose.

The purpose of the RFA seller-sponsored loan participation program and for the issuance of bonds to finance or provide security for the program is to preserve and develop the state's agricultural resources. This is accomplished by extending credit on real estate security through the purchase of participation interests in first priority mortgage farm real estate loans. Loans to persons entering or reentering farming and meeting the eligibility criteria in this chapter are eligible for participation. Under this program, the eligible seller of a farm must partially finance the sale of the farm through a loan to an eligible borrower. An eligible lender and the state, acting through the RFA, shall jointly provide the remainder of the financing needed by the borrower.

Statutory Authority:

MS s 41B.07

History:

20 SR 2251(NO. 42)

Published Electronically:

October 26, 2005