Minnesota Legislature
Office of the Revisor of Statutes
Minnesota Administrative Rules
1653.0091 LOAN CLOSING, PURCHASE OF PARTICIPATION, AND LOAN MANAGEMENT.
Subpart 1.
Closing.
Upon receiving notification of RFA acceptance, the lender shall close the first mortgage loan. The lender must record security documents relating to the loan. The lender must notify the RFA that the loan is closed and recorded by completing the lender certification section and returning the original RFA application, a copy of the note and loan agreement, copies of recorded documents, and the final title opinion to the RFA.
Subp. 2.
Payment.
Within ten business days of receipt of written notice under subpart 1 that the first mortgage loan is closed and recorded, the RFA shall initiate payment to the lender for the RFA's participation interest in the loan.
Subp. 3.
Participation certificate.
Within five business days after the receipt of finally collected funds, the lender shall complete and return a participation certificate as provided by the RFA witnessing the RFA's undivided pro rata interest in the first mortgage loan.
Subp. 4.
Loan management.
The lender shall manage the first mortgage loan, including the RFA participation interest, with the degree of care and diligence usually maintained by agricultural real estate lenders. The lender shall have custody and control of all loan documents except the original application, which must be kept by the RFA. The lender shall manage, administer, and enforce the loan documents in its own name and also on behalf of itself and the RFA, including, without limitation, the right to accelerate first mortgage loans on default and to foreclose or otherwise enforce remedies against the borrower.
Subp. 5.
Lender notification.
The lender shall promptly notify the RFA of occurrences that substantially affect the security, collection, or enforcement of any first mortgage loan.
Subp. 6.
Prior written consent.
The lender shall obtain the prior written consent of the borrower and the RFA before:
A.
making or consenting to a release, substitution, or exchange of collateral that reduces the aggregate value of the collateral;
B.
waiving a claim against the borrower or a guarantor, surety, or obligor in connection with the indebtedness; or
C.
modifying or waiving a term of the notes or related instruments evidencing or securing the first mortgage loan.
History:
20 SR 2427; 30 SR 372
Published Electronically:
October 26, 2005
Official Publication of the State of Minnesota
Revisor of Statutes