2007 Minnesota Statutes

41B.045 LIVESTOCK EXPANSION LOAN PROGRAM.
    Subdivision 1. Establishment. The authority may establish, adopt rules for, and implement a
loan program to finance livestock expansions in the state.
    Subd. 2. Loan participation. The authority may participate in a livestock expansion loan
with an eligible lender to a livestock farmer who meets the requirements of section 41B.03,
subdivision 1 , clauses (1) and (2), and who are actively engaged in a livestock operation. A
prospective borrower must have a total net worth, including assets and liabilities of the borrower's
spouse and dependents, of less than $660,000 in 2004 and an amount in subsequent years which is
adjusted for inflation by multiplying that amount by the cumulative inflation rate as determined by
the United States All-Items Consumer Price Index.
Participation is limited to 45 percent of the principal amount of the loan or $275,000,
whichever is less. The interest rates and repayment terms of the authority's participation interest
may be different from the interest rates and repayment terms of the lender's retained portion
of the loan.
    Subd. 3. Specifications. No loan may be made to refinance an existing debt. Each loan
participation must be secured by a mortgage on real property and such other security as the
authority may require.
    Subd. 4. Application and origination fee. The authority may impose a reasonable
nonrefundable application fee for each application for a loan participation and an origination fee
for each loan issued under the livestock expansion loan program. The origination fee initially
shall be set at 1.5 percent and the application fee at $50. The authority may review the fees
annually and make adjustments as necessary. The fees must be deposited in the state treasury and
credited to an account in the special revenue fund. Money in this account is appropriated to the
commissioner for administrative expenses of the livestock expansion loan program.
    Subd. 5. Interest rate. The interest rate per annum on the livestock expansion loan
participation must be at the rate of interest determined by the authority to be necessary to provide
for the timely payment of principal and interest when due on bonds or other obligations of the
authority issued under this chapter, to provide financing for loan participations made under the
livestock expansion loan program, and to provide for reasonable and necessary costs of issuing,
carrying, administering, and securing the bonds or notes and to pay the costs incurred and to be
incurred by the authority in the implementation of the livestock expansion loan program.
History: 1994 c 619 s 7; 1995 c 220 s 55; 2000 c 477 s 59; 2000 c 488 art 3 s 18; 2002
c 379 art 1 s 15; 2004 c 254 s 21