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Key: (1) language to be deleted (2) new language

  

                         Laws of Minnesota 1988 

                        CHAPTER 474-S.F.No. 1622 
           An act relating to agriculture; clarifying which 
          debtors are eligible for mediation; amending Minnesota 
          Statutes 1986, section 583.24, subdivision 2; 
          Minnesota Statutes 1987 Supplement, section 583.26, 
          subdivision 5. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [PURPOSE.] 
    The purpose of this act is to clarify the meaning of 
Minnesota Statutes, section 583.24, subdivision 2, paragraph 
(b), which provides that a debtor who owns and leases less than 
60 acres is ineligible for mediation if that debtor has less 
than $20,000 in gross sales of agricultural products the 
preceding year.  It is and has been the intent of the 
legislature that a debtor who owns and leases 60 acres or more 
is eligible for mediation regardless of the amount of gross 
income from agricultural products. 
    Sec. 2.  Minnesota Statutes 1986, section 583.24, 
subdivision 2, is amended to read:  
    Subd. 2.  [DEBTORS.] (a) Except as provided in paragraph 
(b) the farmer-lender mediation act applies to a debtor who is: 
    (1) a person operating a family farm as defined in section 
500.24, subdivision 2; 
    (2) a family farm corporation as defined in section 500.24, 
subdivision 2; or 
    (3) an authorized farm corporation as defined in section 
500.24, subdivision 2. 
    (b) The farmer-lender mediation act does not apply to a 
debtor who owns and leases less than 60 acres with if the debtor 
has less than $20,000 in gross sales of agricultural products 
the preceding year.  
     Sec. 3.  Minnesota Statutes 1987 Supplement, section 
583.26, subdivision 5, is amended to read:  
    Subd. 5.  [EFFECT OF MEDIATION PROCEEDING NOTICE.] (a) 
Except as provided in paragraphs (b), (c), and (d), if a 
creditor receives a mediation proceeding notice under 
subdivision 4 the creditor and the creditor's successors in 
interest may not begin or continue proceedings to enforce a debt 
subject to the farmer-lender mediation act against agricultural 
property of the debtor under chapter 580 or 581 or sections 
336.9-501 to 336.9-508, to terminate a contract for deed to 
purchase agricultural property under section 559.21, or to 
garnish, levy on, execute on, seize, or attach agricultural 
property until 90 days after the date the debtor files a 
mediation request with the director. 
    (b) Except as provided in paragraph (c), if a creditor is 
an agency of the United States and receives a mediation 
proceeding notice under subdivision 4, the creditor and the 
creditor's successors in interest may not begin or continue 
proceedings to enforce a debt against agricultural property of 
the debtor under chapter 580 or 581 or sections 336.9-501 to 
336.9-508, to terminate a contract for deed to purchase 
agricultural property under section 559.21, or to garnish, levy 
on, execute on, seize, or attach agricultural property until 180 
90 days after the date the debtor files a mediation request with 
the director. 
    (c) Notwithstanding paragraphs (a) and (b) or subdivision 
1, a creditor receiving a mediation proceeding notice may begin 
proceedings to enforce a debt against agricultural property of 
the debtor:  
    (1) at the time the creditor receives a mediator's 
affidavit of the debtor's lack of good faith under section 
583.27; or 
    (2) five days after the date the debtor and creditor sign 
an agreement allowing the creditor to proceed to enforce the 
debt against agricultural property if the debtor has not 
rescinded the agreement within the five days.  
    (d) A creditor receiving a mediation proceeding notice must 
provide the debtor by the initial mediation meeting with copies 
of notes and contracts for debts subject to the farmer-lender 
mediation act and provide a statement of interest rates on the 
debts, delinquent payments, unpaid principal balance, a list of 
all collateral securing debts, a creditor's estimate of the 
value of the collateral, and debt restructuring programs 
available by the creditor.  
    (e) The provisions of this subdivision are subject to 
section 583.27, relating to extension or reduction in the period 
before a creditor may begin to enforce a debt and 
court-supervised mediation. 
    Sec. 4.  [EFFECTIVE DATE.] 
    Sections 1 to 3 are effective the day after final enactment.
    Approved April 7, 1988