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Minnesota Legislature

Office of the Revisor of Statutes

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

  
    Laws of Minnesota 1993 

                        CHAPTER 332-H.F.No. 1138 
           An act relating to agriculture; changing eligibility 
          and participation requirements for certain rural 
          finance authority programs; authorizing an application 
          fee; appropriating money; amending Minnesota Statutes 
          1992, sections 41B.03, subdivision 1, and by adding a 
          subdivision; 41B.039, subdivision 2; and 41B.042, 
          subdivision 4. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1992, section 41B.03, 
subdivision 1, is amended to read: 
    Subdivision 1.  [ELIGIBILITY GENERALLY.] To be eligible for 
a program in sections 41B.01 to 41B.23: 
    (1) a borrower must be a resident of Minnesota or a 
domestic family farm corporation, as defined in section 500.24, 
subdivision 2; 
    (2) the borrower or one of the borrowers must be the 
principal operator of the farm or, for a prospective homestead 
redemption borrower, must have at one time been the principal 
operator of a farm; and 
    (3) the borrower must not previously have received receive 
assistance under sections 41B.01 to 41B.23 exceeding an 
aggregate of $100,000 in loans during the borrower's lifetime. 
    Sec. 2.  Minnesota Statutes 1992, section 41B.03, is 
amended by adding a subdivision to read: 
    Subd. 6.  [APPLICATION FEE.] The authority may impose a 
reasonable nonrefundable application fee for each application 
submitted for a beginning farmer loan or a seller-sponsored 
loan.  The application fee is initially $50.  The authority may 
review the fee annually and make adjustments as necessary.  The 
fee must be deposited in the state treasury and credited to an 
account in the special revenue fund. 
    Sec. 3.  Minnesota Statutes 1992, section 41B.039, 
subdivision 2, is amended to read: 
    Subd. 2.  [STATE PARTICIPATION.] The state may participate 
in a new real estate loan with an eligible lender to a beginning 
farmer to the extent of 45 percent of the principal amount of 
the loan or $50,000 $100,000, 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. 
    Sec. 4.  Minnesota Statutes 1992, section 41B.042, 
subdivision 4, is amended to read: 
    Subd. 4.  [PARTICIPATION LIMIT; INTEREST.] The authority 
may participate in new seller-sponsored loans to the extent of 
45 percent of the principal amount of the loan or 
$50,000 $100,000, 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 
seller's retained portion of the loan. 
     Sec. 5.  [APPROPRIATION.] 
    $6,000 for fiscal year 1994 and $6,000 for fiscal year 1995 
is appropriated from the special revenue fund to the 
commissioner of agriculture for administrative expenses for the 
programs in Minnesota Statutes, sections 41B.01 to 41B.23. 
    Presented to the governor May 17, 1993 
    Signed by the governor May 20, 1993, 2:13 p.m.