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HF 1747

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

Current Version - as introduced

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A bill for an act
 relating to agriculture; changing certain limits on
agriculture best management practices loans; amending
Minnesota Statutes 2004, section 17.117, subdivision
11.

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

Section 1.

Minnesota Statutes 2004, section 17.117,
subdivision 11, is amended to read:


Subd. 11.

Loans issued to borrower.

(a) Local lenders
may issue loans only for projects that are approved and
certified by the local government unit as meeting priority needs
identified in a comprehensive water management plan or other
local planning documents, are in compliance with accepted
practices, standards, specifications, or criteria, and are
eligible for financing under Environmental Protection Agency or
other applicable guidelines.

(b) The local lender may use any additional criteria
considered necessary to determine the eligibility of borrowers
for loans.

(c) Local lenders shall set the terms and conditions of
loans to borrowers, except that:

(1) no loan to a borrower may exceed deleted text begin $50,000 deleted text end new text begin $100,000new text end ;

(2) no loan for a project may exceed deleted text begin $50,000 deleted text end new text begin $100,000new text end ; and

(3) no borrower shall, at any time, have multiple loans
from this program with a total outstanding loan balance of more
than deleted text begin $50,000 deleted text end new text begin $100,000new text end .

(d) The maximum term length for deleted text begin conservation tillage and
individual sewage treatment system projects is five years. The
maximum term length for other deleted text end projects deleted text begin in this paragraph deleted text end is ten
years.

(e) Fees charged at the time of closing must:

(1) be in compliance with normal and customary practices of
the local lender;

(2) be in accordance with published fee schedules issued by
the local lender;

(3) not be based on participation program; and

(4) be consistent with fees charged other similar types of
loans offered by the local lender.

(f) The interest rate assessed to an outstanding loan
balance by the local lender must not exceed three percent per
year.