Minnesota Legislature
HF 793
as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:42am
Bill Text Versions
| Engrossments | ||
|---|---|---|
| Introduction | Posted on 02/16/2009 |
Current Version - as introduced
1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19
1.20 1.21 1.22 1.23 2.1 2.2
2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10
2.11 2.12 2.13 2.14 2.15 2.16
2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24
2.25 2.26 2.27 2.28 2.29 2.30 2.31 3.1 3.2 3.3 3.4 3.5 3.6
3.7 3.8 3.9
A bill for an act
relating to agriculture; updating terms of certain loan programs; abolishing the
family farm security program; amending Minnesota Statutes 2008, sections
17.115, subdivision 2; 41B.039, subdivision 2; 41B.04, subdivision 8; 41B.042,
subdivision 4; 41B.043, subdivision 1b; 41B.045, subdivision 2; repealing
Minnesota Statutes 2008, sections 41.51; 41.52; 41.53; 41.55; 41.56; 41.57;
41.58; 41.59; 41.60; 41.61; 41.62; 41.63; 41.65.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2008, section 17.115, subdivision 2, is amended to read:
Subd. 2.
Loan criteria.
(a) The shared savings loan program must provide loans for
purchase of new or used machinery and installation of equipment for projects that make
environmental improvements deleted text begin ordeleted text end new text begin andnew text end enhance farm profitability. Eligible loan uses do not
include seed, fertilizer, or fuel.
(b) Loans may not exceed deleted text begin $25,000deleted text end new text begin $40,000new text end per individual applying for a loan and
may not exceed $100,000 for loans to four or more individuals on joint projects. The loan
repayment period may be up to seven years as determined by project cost and energy
savings. The interest rate on the loans must not exceed six percent. deleted text begin For loans made from
May 1, 2004, to June 30, 2007, the interest rate must not exceed three percent.
deleted text end
(c) Loans may only be made to residents of this state engaged in farming.
Sec. 2.
Minnesota Statutes 2008, section 41B.039, subdivision 2, is amended to read:
Subd. 2.
State participation.
The state may participate in a new real estate loan
with an eligible lender to a beginning farmer to the extent of 45 percent of the principal
amount of the loan or deleted text begin $200,000deleted text end new text begin $300,000new text end , whichever is less. The interest rates and
repayment terms of the authority's participation interest may be different than the interest
rates and repayment terms of the lender's retained portion of the loan.
Sec. 3.
Minnesota Statutes 2008, section 41B.04, subdivision 8, is amended to read:
Subd. 8.
deleted text begin State'sdeleted text end new text begin Statenew text end participation.
With respect to loans that are eligible for
restructuring under sections 41B.01 to 41B.23 and upon acceptance by the authority,
the authority shall enter into a participation agreement or other financial arrangement
whereby it shall participate in a restructured loan to the extent of 45 percent of the primary
principal or deleted text begin $225,000deleted text end new text begin $400,000new text end , whichever is less. The authority's portion of the loan
must be protected during the authority's participation by the first mortgage held by the
eligible lender to the extent of its participation in the loan.
Sec. 4.
Minnesota Statutes 2008, section 41B.042, subdivision 4, is amended to read:
Subd. 4.
Participation limit; interest.
The authority may participate in new
seller-sponsored loans to the extent of 45 percent of the principal amount of the loan or
deleted text begin $200,000deleted text end new text begin $300,000new text end , whichever is less. The interest rates and repayment terms of the
authority's participation interest may be different than the interest rates and repayment
terms of the seller's retained portion of the loan.
Sec. 5.
Minnesota Statutes 2008, section 41B.043, subdivision 1b, is amended to read:
Subd. 1b.
Loan participation.
The authority may participate in an agricultural
improvement loan with an eligible lender to a farmer who meets the requirements of
section 41B.03, subdivision 1, clauses (1) and (2), and who is actively engaged in farming.
Participation is limited to 45 percent of the principal amount of the loan or deleted text begin $200,000deleted text end new text begin
$300,000new text end , whichever is less. The interest rates and repayment terms of the authority's
participation interest may be different than the interest rates and repayment terms of
the lender's retained portion of the loan.
Sec. 6.
Minnesota Statutes 2008, section 41B.045, subdivision 2, is amended to read:
Subd. 2.
Loan participation.
The authority may participate in a livestock
expansion loan with an eligible lender to a livestock farmer who meets the requirements
of section 41B.03, subdivision 1, clauses (1) and (2), and who are actively engaged in
a livestock operation. A prospective borrower must have a total net worth, including
assets and liabilities of the borrower's spouse and dependents, of less than $660,000 in
2004 and an amount in subsequent years which is adjusted for inflation by multiplying
that amount by the cumulative inflation rate as determined by the United States All-Items
Consumer Price Index.
Participation is limited to 45 percent of the principal amount of the loan or deleted text begin $275,000deleted text end new text begin
$400,000new text end , whichever is less. The interest rates and repayment terms of the authority's
participation interest may be different from the interest rates and repayment terms of
the lender's retained portion of the loan.
Sec. 7. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2008, sections 41.51; 41.52; 41.53; 41.55; 41.56; 41.57; 41.58;
41.59; 41.60; 41.61; 41.62; 41.63; and 41.65,
new text end
new text begin
are repealed.
new text end