2004 Minnesota Statutes

     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 
 interest rates.  

    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. 

    HIST: 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