Subdivision 1. Scope.
For the purposes of Laws 1976, chapter 210 the following terms shall
have the meanings given.
Subd. 2. Applicant.
"Applicant" means a natural person applying for a family farm security
Subd. 3. Council.
"Council" means the Family Farm Advisory Council.
Subd. 4. Commissioner.
"Commissioner" means the commissioner of agriculture.
Subd. 5. Family farm security loan.
"Family farm security loan", except in the case
of a seller-sponsored loan, means a loan secured by a first real estate mortgage. In the case of
a seller-sponsored loan, it means a loan secured either by a real estate mortgage evidenced by
one or more notes or secured by a contract for deed. It shall be used for acquisition of farm land
and shall be approved by the commissioner. This loan shall be guaranteed and may qualify for a
payment adjustment as defined in subdivision 10 and may be a seller-sponsored loan as defined in
Subd. 6. Farm land.
"Farm land" means land in Minnesota that is capable of supporting the
commercial production of agricultural crops, livestock or livestock products, poultry products,
milk or dairy products, or fruit or other horticultural products.
Subd. 7. Lender.
"Lender" means any bank, savings bank, mutual savings bank, savings
association, organized under the laws of this state or the United States, trust companies, trust
companies acting as fiduciaries, and other financial institutions subject to the supervision of the
commissioner of commerce; and any foreign or domestic corporation engaged in the business
of insurance which is subject to the supervision of the commissioner of commerce as defined in
60A.02, subdivision 3
; and any financial institution operating under the supervision of
the farm credit administration. In case of seller-sponsored loans as authorized in section
"lender" also means the seller of the property.
Subd. 8. Seller-sponsored loan.
"Seller-sponsored loan" means a loan in which part or all
of the purchase price of the farm is financed by a loan from the seller of the property who is a
natural person, a partnership or a family farm corporation as defined in section
, and the
remainder of the loan, if any, is supplied by a lender as defined in subdivision 7 or other person.
This loan shall be secured by a real estate mortgage evidenced by one or more notes that may
carry different interest rates, or by a contract for deed.
Subd. 9. Family farm loan guarantee.
"Family farm loan guarantee" means an agreement
that in the event of default the state of Minnesota shall pay the lender 90 percent of the sums due
and payable under the first real estate mortgage, or, in the case of a seller-sponsored loan, 90
percent of the sums due and payable under the note and mortgage or contract for deed.
Subd. 10. Payment adjustment.
"Payment adjustment" means an amount of money equal to
four percent interest on the principal balance of the family farm security loan.
Subd. 11. Cooperating agency.
"Cooperating agency" means any individual, financial
institution, state or federal agency, or any other legal entity which executes a memorandum of
understanding with the family farm security program.
Subd. 12. Memorandum of understanding.
"Memorandum of understanding" means an
agreement outlining conditions under which a cooperating agency will provide farm real estate
loan funds not to be included under a family farm loan guarantee to applicants.
Subd. 13. Participant.
"Participant" means an applicant who has received final approval for
a guarantee which has been fully executed by the state.
History: 1976 c 210 s 2; 1977 c 170 s 1,2; 1981 c 261 s 4-8; 1983 c 289 s 114 subd 1; 1983
c 332 s 2; 1984 c 655 art 1 s 92; 1995 c 202 art 1 s 25