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41B.047 DISASTER RECOVERY LOAN PROGRAM.
    Subdivision 1. Establishment. The authority shall establish and implement a disaster
recovery loan program to help farmers:
    (1) clean up, repair, or replace farm structures and septic and water systems, as well as
replace seed, other crop inputs, feed, and livestock, when damaged by high winds, hail, tornado,
or flood; or
    (2) purchase watering systems, irrigation systems, and other drought mitigation systems and
practices when drought is the cause of the purchase.
    Subd. 2.[Repealed, 2002 c 220 art 9 s 8]
    Subd. 3. Eligibility. To be eligible for this program, a borrower must:
    (1) meet the requirements of section 41B.03, subdivision 1;
    (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 $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
Consumer Price Index; 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) 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.
    (d) 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 revolving loan account established under section 41B.06.
    (e) Disaster recovery loans under this program will be made using money in the revolving
loan account established under section 41B.06.
    (f) Repayments of financial assistance under this section, including principal and interest,
must be deposited into the revolving loan account established under section 41B.06.
History: 1998 c 383 s 32; 2002 c 379 art 1 s 17; 2007 c 45 art 1 s 52