SF 852

1st Engrossment - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to agriculture; changing limits for 
  1.3             agricultural improvement and livestock expansion 
  1.4             loans; appropriating money; amending Minnesota 
  1.5             Statutes 1994, sections 41B.043, subdivisions 1b, 2, 
  1.6             and 3; and 41B.045, subdivision 2. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1994, section 41B.043, 
  1.9   subdivision 1b, is amended to read: 
  1.10     Subd. 1b.  [LOAN PARTICIPATION.] The authority may 
  1.11  participate in an agricultural improvement loan with an eligible 
  1.12  lender to a farmer who meets the requirements of section 41B.03, 
  1.13  subdivision 1, clauses (1) and (2), and who are actively engaged 
  1.14  in farming.  Participation is limited to 45 percent of the 
  1.15  principal amount of the loan or $50,000 $100,000, whichever is 
  1.16  less.  The interest rates and repayment terms of the authority's 
  1.17  participation interest may be different than the interest rates 
  1.18  and repayment terms of the lender's retained portion of the loan.
  1.19     Sec. 2.  Minnesota Statutes 1994, section 41B.043, 
  1.20  subdivision 2, is amended to read: 
  1.21     Subd. 2.  [SPECIFICATIONS.] No direct loan may exceed 
  1.22  $35,000 or $50,000 $100,000 for a loan participation or be made 
  1.23  to refinance an existing debt.  Each direct loan and 
  1.24  participation must be secured by a mortgage on real property and 
  1.25  such other security as the authority may require. 
  1.26     Sec. 3.  Minnesota Statutes 1994, section 41B.043, 
  2.1   subdivision 3, is amended to read: 
  2.2      Subd. 3.  [APPLICATION AND ORIGINATION FEE.] The authority 
  2.3   may impose a reasonable nonrefundable application fee for each 
  2.4   application for a direct loan or participation and an 
  2.5   origination fee for each direct loan issued under the 
  2.6   agricultural improvement loan program.  The origination fee 
  2.7   initially shall be set at 1.5 percent and the application fee at 
  2.8   $50.  The authority may review the fees annually and make 
  2.9   adjustments as necessary.  The fees must be deposited in the 
  2.10  state treasury and credited to an account in the special revenue 
  2.11  fund.  Money in this account is appropriated to the commissioner 
  2.12  for administrative expenses of the agricultural improvement loan 
  2.13  program. 
  2.14     Sec. 4.  Minnesota Statutes 1994, section 41B.045, 
  2.15  subdivision 2, is amended to read: 
  2.16     Subd. 2.  [LOAN PARTICIPATION.] The authority may 
  2.17  participate in a livestock expansion loan with an eligible 
  2.18  lender to a livestock farmer who meets the requirements of 
  2.19  section 41B.03, subdivision 1, clauses (1) and (2), and who are 
  2.20  actively engaged in a livestock operation.  Participation is 
  2.21  limited to 45 percent of the principal amount of the loan or 
  2.22  $100,000 $250,000, whichever is less.  The interest rates and 
  2.23  repayment terms of the authority's participation interest may be 
  2.24  different from the interest rates and repayment terms of the 
  2.25  lender's retained portion of the loan.  Loans under this program 
  2.26  must not be included in the lifetime limitation calculated under 
  2.27  section 41B.03, subdivision 1. 
  2.28     Sec. 5.  [DEMONSTRATION PROGRAM RESTRICTIONS.] 
  2.29     (a) During fiscal years 1996 and 1997, loan participations 
  2.30  under Minnesota Statutes, section 41B.045, must comply with the 
  2.31  restrictions in this section. 
  2.32     (b) To the extent that herd health will not be jeopardized, 
  2.33  farms receiving assistance from the authority must be available 
  2.34  for tours within the first two years after completion of the 
  2.35  expansion. 
  2.36     (c) All livestock expansion loans must be for expansions 
  3.1   that include some of the most up-to-date, efficient systems 
  3.2   available.  Projects must be reviewed by a University of 
  3.3   Minnesota extension livestock specialist prior to approval by 
  3.4   the authority. 
  3.5      Sec. 6.  [EFFECTIVE DATE.] 
  3.6      This act is effective the day following final enactment.