2001 Minnesota Statutes

     41B.047 Disaster recovery loan program. 

    Subdivision 1.    Establishment.  The authority shall 
 establish and implement a disaster recovery loan program to help 
 farmers clean up, repair, or replace farm structures and septic 
 and water systems, as well as replacement of seed, other crop 
 inputs, feed, and livestock. 

    Subd. 2.    Revolving fund.  There is established in the 
 state treasury a disaster recovery revolving fund which is 
 eligible to receive appropriations.  All repayments of financial 
 assistance granted under subdivision 1, including principal and 
 interest, must be deposited into this fund.  Interest earned on 
 money in the fund accrues to the fund, and money in the fund is 
 appropriated to the commissioner of agriculture for purposes of 
 the disaster recovery loan program, including costs incurred by 
 the authority to establish and administer the program. 

    Subd. 3.    Eligibility.  To be eligible for this 
 program, a borrower must: 

    (1) be a resident of this state or a domestic family farm 
 corporation or family farm partnership as defined in section 
 500.24, subdivision 2; 

    (2) certify that the damage or loss was sustained within a 
 county that was the subject of a state or federal disaster 
 declaration; 

    (3) demonstrate an ability to repay the loan; 

    (4) have a total net worth, including assets and 
 liabilities of the borrower's spouse and dependents, of less 
 than $400,000; and 

    (5) have received at least 50 percent of average annual 
 gross income from farming for the past three years. 

    Subd. 4.    Loans.  (a) The authority may participate in 
 a disaster recovery loan with an eligible lender to a farmer who 
 is eligible under subdivision 3.  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 differ from the 
 interest rates and repayment terms of the lender's retained 
 portion of the loan, but the authority's interest rate must not 
 exceed four percent. 

    (b) Standards for loan amortization shall be set by the 
 rural finance authority not to exceed ten years. 

    (c) Loans under this program must not be included in the 
 lifetime limitation calculated under section 41B.03, subdivision 
 1. 

    (d) Security for the disaster recovery loans must be a 
 personal note executed by the borrower and whatever other 
 security is required by the eligible lender or the authority. 

    (e) The authority may impose a reasonable nonrefundable 
 application fee for a disaster recovery loan.  The authority may 
 review the fee annually and make adjustments as necessary.  The 
 application fee is initially $50.  Application fees received by 
 the authority must be deposited in the disaster recovery 
 revolving fund. 

    (f) Disaster recovery loans under this program will be made 
 using money in the disaster recovery revolving fund established 
 under subdivision 2. 

    HIST: 1998 c 383 s 32