Minnesota Session Laws - 1994, Regular Session

                            CHAPTER 514-S.F.No. 1903 
                  An act relating to agricultural economy; increasing 
                  extent of authorized state participation in rural 
                  finance authority loan restructuring program; 
                  repealing authorization for the commissioner of 
                  finance to issue obligations to assist 
                  agricultural-industrial facilities in Detroit Lakes; 
                  amending Minnesota Statutes 1992, section 41B.04, 
                  subdivision 8; repealing Laws 1992, chapter 543. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1992, section 41B.04, 
        subdivision 8, is amended to read: 
           Subd. 8.  [STATE'S PARTICIPATION.] With respect to loans 
        that are eligible for restructuring under sections 41B.01 to 
        41B.23 and upon acceptance by the authority, the authority shall 
        enter into a participation agreement or other financial 
        arrangement whereby it shall participate in a restructured loan 
        to the extent of one-quarter 45 percent of the primary principal 
        or $50,000 $100,000, whichever is less.  The authority's portion 
        of the loan must be protected during the authority's 
        participation by the first mortgage held by the eligible lender 
        to the extent of its participation in the loan.  
           Sec. 2.  [REPEALER.] 
           Laws 1992, chapter 543, is repealed. 
           Sec. 3.  [EFFECTIVE DATE.] 
           This act is effective the day following final enactment. 
           Presented to the governor April 22, 1994 
           Signed by the governor April 25, 1994, 1:00 p.m.