41B.042 SELLER-SPONSORED PROGRAM.
Subdivision 1. Establishment.
The authority must, within 120 days after August 1, 1989,
establish, develop criteria, and implement a seller-sponsored loan participation program to assist
persons entering or reentering farming. The authority must conduct a study on the feasibility
of implementing a program for assistance to persons entering or reentering farming through
seller-participation contracts for deed and report to the legislature by January 15, 1990.
Subd. 2. Security.
Seller-sponsored loans in which the authority holds an interest must
be secured by a real estate mortgage evidenced by one or more notes that may carry different
Subd. 3. Prohibited participation.
The authority may not participate in seller-sponsored
loans if the buyer or seller has previously participated in a family farm security loan or a
seller-sponsored loan under chapter 41. Unless the loan is partially financed by an eligible
lender, the authority may not participate in loans between persons that are related to each other
as parent and child, brother and sister, grandparent and grandchild, uncle or aunt and niece or
nephew, or first cousins.
Subd. 4. Participation limit; interest.
The authority may participate in new seller-sponsored
loans to the extent of 45 percent of the principal amount of the loan or $200,000, whichever
is less. The interest rates and repayment terms of the authority's participation interest may be
different than the interest rates and repayment terms of the seller's retained portion of the loan.
History: 1989 c 273 s 7; 1992 c 532 s 2; 1993 c 332 s 4; 2000 c 477 s 57; 2000 c 488
art 3 s 16; 2004 c 254 s 18