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HF 584

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.
Version List Authors and Status
Rtf

Bill Text Versions

Engrossments
Introduction Posted on 01/31/2005

Current Version - as introduced

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A bill for an act
 relating to agriculture; extending the interest-free
status of manure digester loans; amending Minnesota
Statutes 2004, section 41B.049, subdivision 4.

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

Section 1.

Minnesota Statutes 2004, section 41B.049,
subdivision 4, is amended to read:


Subd. 4.

Loans.

(a) The authority may make a direct loan
or participate in a loan with an eligible lender to a farmer who
is eligible under subdivision 3. deleted text begin The interest rates and
deleted text end Repayment terms of the authority's participation interest may
differ from deleted text begin the interest rates and deleted text end repayment terms of the
lender's retained portion of the loan. deleted text begin The authority's interest
rate for a direct loan or a loan participation must not exceed
four percent.deleted text end Loans made under this section deleted text begin before July 1,
2003,deleted text end must be no-interest loans.

(b) Application for a direct loan or a loan participation
must be made on forms prescribed by the authority.

(c) Standards for loan amortization shall be set by the
Rural Finance Authority not to exceed ten years.

(d) Security for the loans must be a personal note executed
by the borrower and whatever other security is required by the
eligible lender or the authority.

(e) No loan proceeds may be used to refinance a debt
existing prior to application.

(f) The authority may impose a reasonable nonrefundable
application fee for each application for a direct loan or a loan
participation. The authority may review the application fees
annually and make adjustments as necessary. The application fee
is initially set at $100 for a loan under subdivision 1. The
fees received by the authority must be deposited in the
revolving fund created in subdivision 2.

Sec. 2. new text begin EFFECTIVE DATE.
new text end

new text begin Section 1 is effective retroactively for any loan made on
or after July 1, 2003.
 new text end