HF 3354

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to capital improvements; authorizing issuance 
  1.3             of bonds; appropriating money to the rural finance 
  1.4             authority for loans under Minnesota Statutes, chapter 
  1.5             41B.  
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [APPROPRIATION.] 
  1.8      $20,000,000 is appropriated from the bond proceeds fund to 
  1.9   the rural finance authority to purchase participation interests 
  1.10  in or to make direct agricultural loans to farmers under 
  1.11  Minnesota Statutes, chapter 41B.  This appropriation is for the 
  1.12  beginning farmer program under Minnesota Statutes, section 
  1.13  41B.039; the loan restructuring program under Minnesota 
  1.14  Statutes, section 41B.04; the seller-sponsored program under 
  1.15  Minnesota Statutes, section 41B.042; the agricultural 
  1.16  improvement loan program under Minnesota Statutes, section 
  1.17  41B.043; and the livestock expansion loan program under 
  1.18  Minnesota Statutes, section 41B.045.  All debt service on bond 
  1.19  proceeds used to finance this appropriation must be repaid by 
  1.20  the rural finance authority under Minnesota Statutes, section 
  1.21  16A.643.  Loan participations must be priced to provide full 
  1.22  interest and principal coverage and a reserve for potential 
  1.23  losses.  Priority for loans must be given first to basic 
  1.24  beginning farmer loans; second, to seller-sponsored loans; and 
  1.25  third, to agricultural improvement loans. 
  2.1      Sec. 2.  [BOND SALE.] 
  2.2      To provide the money appropriated in section 1 from the 
  2.3   bond proceeds fund, the commissioner of finance shall sell and 
  2.4   issue bonds of the state in an amount up to $20,000,000 in the 
  2.5   manner, upon the terms, and with the effect prescribed by 
  2.6   Minnesota Statutes, sections 16A.631 to 16A.675, and by the 
  2.7   Minnesota Constitution, article XI, sections 4 to 7. 
  2.8      Sec. 3.  [EFFECTIVE DATE.] 
  2.9      Sections 1 and 2 are effective the day following final 
  2.10  enactment.