SF 510

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

A bill for an act
relating to capital improvements; authorizing the
issuance of state bonds; appropriating money to the
Rural Finance Authority for loan participation.

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

Section 1. new text begin APPROPRIATION.
new text end

new text begin $18,000,000 is appropriated from the bond proceeds fund to
the Rural Finance Authority to purchase participation interests
in or to make direct agricultural loans to farmers under
Minnesota Statutes, chapter 41B. This appropriation is for the
beginning farmer program under Minnesota Statutes, section
41B.039, the loan restructuring program under Minnesota
Statutes, section 41B.04, the seller-sponsored program under
Minnesota Statutes, section 41B.042, the agricultural
improvement loan program under Minnesota Statutes, section
41B.043, and the livestock expansion loan program under
Minnesota Statutes, section 41B.045. All debt service on bond
proceeds used to finance this appropriation must be repaid by
the Rural Finance Authority under Minnesota Statutes, section
16A.643. Loan participations must be priced to provide full
interest and principal coverage and a reserve for potential
losses.
new text end

Sec. 2. new text begin BOND SALE.
new text end

new text begin To provide the money appropriated in this act from the bond
proceeds fund, the commissioner of finance shall sell and issue
bonds of the state in an amount up to $18,000,000 in the manner,
upon the terms, and with the effect prescribed by Minnesota
Statutes, sections 16A.631 to 16A.675, and by the Minnesota
Constitution, article XI, sections 4 to 7.
new text end

Sec. 3. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 and 2 are effective the day following final
enactment.
new text end