SF 1942

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to agriculture; extending the interest-free 
  1.3             status of manure digester loans; amending Minnesota 
  1.4             Statutes 2002, section 41B.049, subdivision 4.  
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 2002, section 41B.049, 
  1.7   subdivision 4, is amended to read: 
  1.8      Subd. 4.  [LOANS.] (a) The authority may make a direct loan 
  1.9   or participate in a loan with an eligible lender to a farmer who 
  1.10  is eligible under subdivision 3.  The interest rates and 
  1.11  Repayment terms of the authority's participation interest may 
  1.12  differ from the interest rates and repayment terms of the 
  1.13  lender's retained portion of the loan.  The authority's interest 
  1.14  rate for a direct loan or a loan participation must not exceed 
  1.15  four percent.  Loans made under this section before July 1, 
  1.16  2003, must be no-interest loans.  
  1.17     (b) Application for a direct loan or a loan participation 
  1.18  must be made on forms prescribed by the authority. 
  1.19     (c) Standards for loan amortization shall be set by the 
  1.20  Rural Finance Authority not to exceed ten years. 
  1.21     (d) Security for the loans must be a personal note executed 
  1.22  by the borrower and whatever other security is required by the 
  1.23  eligible lender or the authority. 
  1.24     (e) No loan proceeds may be used to refinance a debt 
  1.25  existing prior to application. 
  2.1      (f) The authority may impose a reasonable nonrefundable 
  2.2   application fee for each application for a direct loan or a loan 
  2.3   participation.  The authority may review the application fees 
  2.4   annually and make adjustments as necessary.  The application fee 
  2.5   is initially set at $100 for a loan under subdivision 1.  The 
  2.6   fees received by the authority must be deposited in the 
  2.7   revolving fund created in subdivision 2. 
  2.8      Sec. 2.  [EFFECTIVE DATE.] 
  2.9      Section 1 is effective retroactive to July 1, 2003.