41B.043 AGRICULTURAL IMPROVEMENT LOAN PROGRAM.
Subdivision 1. Establishment.
The authority may establish, adopt rules for, and implement
an agricultural improvement loan program to finance agricultural improvements.
Subd. 1a.[Repealed, 2007 c 45 art 1 s 66
Subd. 1b. Loan participation.
The authority may participate in an agricultural improvement
loan with an eligible lender to a farmer who meets the requirements of section
, clauses (1) and (2), and who is actively engaged in farming. Participation is limited to 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 lender's retained portion of the loan.
Subd. 2. Specifications.
Each loan participation must be secured by a mortgage on real
property and such other security as the authority may require.
Subd. 2a. Snow, flood, or other naturally caused damage.
A prospective borrower
applying for a loan participation through an eligible lender may refinance an existing debt in
order to repair or replace farm driveways, drainage ditches and tile lines, grassed waterways, or
agricultural buildings damaged due to snow, flooding, or other weather-related causes.
Subd. 3. Application and origination fee.
The authority may impose a reasonable
nonrefundable application fee for each application submitted for a participation issued under the
agricultural improvement loan program. The application fee is initially $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 agricultural improvement
Subd. 4. Interest rate.
The interest rate per annum on the agricultural improvement
participation must be 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 chapter 41B to provide financing for participations made under the
agricultural improvement 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 agricultural improvement loan
Subd. 5. Total net worth limit.
A prospective borrower for an agricultural improvement
loan in which the authority holds an interest must have a total net worth, including assets and
liabilities of the borrower's spouse and dependents, of less than $350,000 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.
History: 1992 c 602 s 9; 1993 c 298 s 2; 1995 c 220 s 52-54; 2Sp1997 c 2 s 16; 1998 c
383 s 31; 2000 c 477 s 58; 2000 c 488 art 3 s 17; 1Sp2001 c 2 s 69,70; 2004 c 254 s 19,20;
2007 c 45 art 1 s 49-51