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HF 1098

as introduced - 89th Legislature (2015 - 2016) Posted on 02/19/2015 01:49pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 02/19/2015

Current Version - as introduced

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A bill for an act
relating to agriculture; increasing the state participation limit for Rural Finance
Authority loans; amending Minnesota Statutes 2014, sections 41B.039,
subdivision 2; 41B.04, subdivision 8; 41B.042, subdivision 4; 41B.043,
subdivision 1b; 41B.045, subdivision 2.

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

Section 1.

Minnesota Statutes 2014, 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 $300,000deleted 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 than the interest
rates and repayment terms of the lender's retained portion of the loan.

Sec. 2.

Minnesota Statutes 2014, section 41B.04, subdivision 8, is amended to read:


Subd. 8.

State 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 $400,000deleted text end new text begin $525,000new 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. 3.

Minnesota Statutes 2014, 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 $300,000deleted 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 than the interest rates and repayment
terms of the seller's retained portion of the loan.

Sec. 4.

Minnesota Statutes 2014, 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 $300,000deleted text end new text begin
$400,000
new 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. 5.

Minnesota Statutes 2014, 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 $400,000deleted text end new text begin
$525,000
new 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.