Minnesota Administrative Rules

8830.6700 INTEREST ADJUSTMENT.

Subpart 1.

Eligibility requirements.

In order to be eligible for an interest adjustment, an applicant must meet the requirements of Minnesota Statutes, section 222.58, subdivision 5a.

Subp. 2.

Repayment procedures.

The borrower shall reimburse the commissioner for any amounts paid as an interest adjustment within one year after the final payment to a lending institution is due on the loan. The reimbursement to the commissioner may be made in equal installments over the period of one year or in a single payment at the close of that year.

If the borrower has no proprietary right in the property to be rehabilitated, then a promissory note must be negotiated between the borrower and the commissioner prior to the granting of a loan guarantee to insure repayment of the interest adjustment.

Statutory Authority:

MS s 218.071; 219.073; 219.165; 219.17; 219.384; 222.50; 222.58; 222.63

History:

23 SR 524

Published Electronically:

October 2, 2007