SF 1209

1st Engrossment - 94th Legislature (2025 - 2026)

Posted on 05/12/2025 10:33 a.m.

A bill for an act
relating to capital investment; appropriating money for the Rural Finance Authority;
authorizing the sale and issuance of state bonds.

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

Section 1. new text begin RURAL FINANCE AUTHORITY.
new text end

new text begin Subdivision 1. new text end

new text begin Appropriation. new text end

new text begin $30,000,000 is appropriated from the bond proceeds
account in the rural finance administration fund to the Rural Finance Authority for the
purposes set forth in the Minnesota Constitution, article XI, section 5, paragraph (h), 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 41B.04; the seller-sponsored program under Minnesota Statutes, section
41B.042; the agricultural improvement loan program under Minnesota Statutes, section
41B.043; and the livestock expansion and modernization loan program under Minnesota
Statutes, section 41B.045. 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. Priority for loans must be given first to basic
beginning farmer loans, second to seller-sponsored loans, and third to agricultural
improvement loans.
new text end

new text begin Subd. 2. new text end

new text begin Bond sale expenses. new text end

new text begin $30,000 is appropriated from the bond proceeds fund to
the commissioner of management and budget for bond sale expenses under Minnesota
Statutes, section 16A.641, subdivision 8.
new text end

new text begin Subd. 3. new text end

new text begin Bond sale. new text end

new text begin To provide the money appropriated in this section from the bond
proceeds fund, the commissioner of management and budget shall sell and issue bonds of
the state in an amount up to $30,030,000 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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end