language to be deleted (2) new language
Laws of Minnesota 1993 CHAPTER 298-H.F.No. 1149 An act relating to the agricultural finance authority; authorizing direct loans and participations; increasing the dollar limit; appropriating money; amending Minnesota Statutes 1992, sections 41B.02, by adding a subdivision; and 41B.043. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: Section 1. Minnesota Statutes 1992, section 41B.02, is amended by adding a subdivision to read: Subd. 7a. [DIRECT LOAN.] "Direct loan" means a loan originated and serviced by the authority without involvement of an eligible lender. Sec. 2. Minnesota Statutes 1992, section 41B.043, is amended to read: 41B.043 [AGRICULTURAL IMPROVEMENT LOAN PROGRAM.] Subdivision 1. [ESTABLISHMENT.] The authority may establish, adopt rules for, and implement an agricultural improvement loan program to finance agricultural improvements.
Loans may be made to borrowers who meet the requirements of section 41B.03, subdivision 1, clauses (1) and (2), and who are actively engaged in farming. In the first two years, all loans must be given to grade B dairy farmers for the purpose of enabling them to upgrade to grade A.Subd. 1a. [DIRECT LOANS.] Direct loans may be made to borrowers who meet the requirements of section 41B.03, subdivision 1, clauses (1) and (2), and who are actively engaged in farming. Subd. 1b. [LOAN PARTICIPATION.] The authority may participate in an agricultural improvement loan with an eligible lender to a farmer who meets the requirements of section 41B.03, subdivision 1, clauses (1) and (2), and who are actively engaged in farming. Participation is limited to 45 percent of the principal amount of the loan or $50,000, whichever is less. The interest rates and repayment terms of the authority's participation interest may be different than the interest rates and repayment terms of the lender's retained portion of the loan. Subd. 2. [SPECIFICATIONS.] No direct loan may exceed $20,000$35,000 or $50,000 for a loan participation or be made to refinance an existing debt. Each direct loan and participation must be secured by a mortgage on real property comprising all or part of the farm on which the improvements are made,and such other security as the authority may require. Subd. 3. [APPLICATION AND ORIGINATION FEE.] The authority may impose a reasonable nonrefundable application fee for each application for a direct loan or participation and an origination fee for each direct loan issued under the agricultural improvement loan program. The origination fee initially shall be set at 1.5 percent and the application fee at $50. The authority may review the fees annually and make adjustments as necessary. The fees must be deposited in the state treasury and credited to a specialan account in the special revenue fund. Money in the account is appropriated to the commissioner for administrative expenses for the agricultural improvement loan program.Subd. 4. [INTEREST RATE.] The interest rate per annum on the agricultural improvement direct loan or participation must be the rate of interest determined by the authority to be necessary to provide for the timely payment of principal and interest when due on bonds or other obligations of the authority issued under chapter 41B to provide financing for direct loans and participations made under the agricultural improvement loan program, and to provide for reasonable and necessary costs of issuing, carrying, administering, and securing the bonds or notes and to pay the costs incurred and to be incurred by the authority in the implementation of the agricultural improvement loan program. Sec. 3. [APPROPRIATION.] $30,000 in fiscal year 1994 and $30,000 in fiscal year 1995 is appropriated from the special revenue fund to the commissioner of agriculture for administrative expenses for the agricultural improvement loan program. Sec. 4. [APPROPRIATION; DAIRY LEADERS ROUNDTABLE.] Notwithstanding any rules adopted under Minnesota Statutes, section 32A.071, a total of not more than $100,000 in fiscal year 1993 and a total of not more than $100,000 in fiscal year 1994 are appropriated on June 30, 1993, and June 30, 1994, from the balance remaining in the Minnesota milk over-order premium account after all payments have been made at the discretion of the commissioner of agriculture to the Minnesota dairy leaders roundtable for programs and activities of the roundtable. Presented to the governor May 17, 1993 Signed by the governor May 20, 1993, 2:17 p.m.