Subdivision 1. Filing requirements. (a) To enroll a loan under this program, the lender must file a completed loan enrollment form with the commissioner. The lender must also certify the following to the commissioner as part of the filing:
(1) the lender has no substantial reason to believe that the loan is being made to a borrower who does not meet the requirements of section 116J.876, subdivision 3;
(2) that the lender has received from the borrower a written representation, warranty, pledge, and waiver stating that the borrower has no legal, beneficial, or equitable interest in the nonrefundable premium charges or any other funds credited to the reserve fund established to cover losses sustained by the lender on enrolled loans;
(3) the loan being filed for enrollment is an eligible loan under section 116J.8763; and
(4) premium changes required of the borrower and lender under this section have been deposited in the reserve fund.
(b) The lender shall file the loan enrollment form within ten business days after the lender makes the loan. The date on which the lender makes a loan is the date on which the lender first disburses proceeds of the loan to the borrower or an earlier date on which the loan documents have been executed and the lender has obligated itself to disburse proceeds of the loan. The filing date of a loan enrollment form is the date on which the lender delivers the required documentation to the commissioner, delivers it to a professional courier service for delivery to the commissioner, or mails it to the commissioner by certified mail.
Subd. 2. Commissioner enrollment; acknowledgment. When the commissioner receives the loan enrollment form, the commissioner shall enroll the loan, unless the information provided under subdivision 1 indicates that the loan is not an eligible loan, and shall deliver to the lender within five business days of receipt an acknowledgment of enrollment, signed by the commissioner or designee, including documentation of the amount being transferred by the commissioner into the reserve fund under this section.
Subd. 2a. Enrollment of loans without commissioner's full premium payment. The commissioner may continue to accept loans for enrollment into the program even if the amount of funds contained in the account is zero or an amount less than the full amount that is required to be transferred under section 116J.8765, subdivision 2, paragraph (a), (b), or (c).
Subd. 3. Amount covered. When filing a loan enrollment form, the lender may specify an amount to be covered under the program. The amount may be less than the total amount of the loan. Unless the context clearly requires otherwise, when used in connection with a loan or loans, the words "amount" and "proceeds" refer only to the amount covered under the agreement.
Subd. 4. Amount covered in refinancings. (a) In the case of a loan to refinance a loan previously made to the borrower by the lender that was not enrolled under the program, the lender may obtain coverage under the program for an amount not exceeding the amount of additional financing.
(b) If an enrolled loan is refinanced and the total amount to be covered under the program does not exceed the covered amount of the loan as previously enrolled, the refinanced loan may continue as an enrolled loan without payment of additional premium charges or transfers by the commissioner to the reserve fund.
(c) If an enrolled loan is refinanced in an amount exceeding the amount of the loan as previously enrolled, the lender may obtain coverage of the amount of the refinanced loan that exceeds the amount covered when the loan was previously enrolled by refiling the loan for enrollment under subdivision 1.
(d) Fluctuations in the outstanding balance of a line of credit, without increasing the enrolled amount under the program, are not a refinancing of the loan.
Subd. 5. Termination of enrollment. If the outstanding balance of an enrolled loan which is not a line of credit is reduced to zero, the loan is no longer an enrolled loan. If an enrolled loan which is a line of credit has an outstanding balance of zero for a 12-month period, the line of credit is no longer an enrolled loan, unless, before the expiration of the 12-month period, the lender reaffirms in writing to the borrower that the line of credit will remain open and the borrower acknowledges the reaffirmation in writing.
1989 c 335 art 1 s 150; 2003 c 128 art 13 s 21
Structure Minnesota Statutes
Chapters 116J - 116O — Economic Development And Planning
Chapter 116J — Employment And Economic Development
Section 116J.01 — Department Of Employment And Economic Development.
Section 116J.0124 — Plain Language In Written Materials.
Section 116J.0125 — Annual Report To Legislature.
Section 116J.013 — Cost-of-living Study; Annual Report.
Section 116J.014 — Cooperation With Other State Agencies.
Section 116J.03 — Definitions.
Section 116J.035 — Powers Of Commissioner; Rules.
Section 116J.401 — Designation; Duties; Data.
Section 116J.4011 — Labor Market Information Data Production Requirement.
Section 116J.407 — Dairy Modernization.
Section 116J.39 — Office Of Broadband Development.
Section 116J.391 — Coordination Of Broadband Infrastructure Development.
Section 116J.394 — Definitions.
Section 116J.395 — Border-to-border Broadband Development Grant Program.
Section 116J.3951 — Broadband Line Extension Program.
Section 116J.396 — Border-to-border Broadband Fund.
Section 116J.397 — Updated Broadband Deployment Data And Maps.
Section 116J.398 — Broadband Prevailing Wage Exemption.
Section 116J.399 — Broadband Easements.
Section 116J.411 — Definitions.
Section 116J.412 — Account Allocation.
Section 116J.415 — Challenge Grant Program.
Section 116J.417 — Greater Minnesota Child Care Facility Capital Grant Program.
Section 116J.421 — Rural Policy And Development Center.
Section 116J.4221 — Rural Policy And Development Center Fund.
Section 116J.423 — Minnesota 21st Century Fund.
Section 116J.424 — Iron Range Resources And Rehabilitation Contribution.
Section 116J.431 — Greater Minnesota Business Development Public Infrastructure Grant Program.
Section 116J.435 — Innovative Business Development Public Infrastructure Grant Program.
Section 116J.436 — Transportation Economic Development Infrastructure Program.
Section 116J.437 — Coordinating Economic Development And Environmental Policy.
Section 116J.438 — Minnesota Green Enterprise Assistance.
Section 116J.439 — Airport Infrastructure Renewal (air) Grant Program.
Section 116J.548 — Host Community Economic Development Grants.
Section 116J.5491 — Energy Transition Office.
Section 116J.5492 — Energy Transition Advisory Committee.
Section 116J.5493 — Minnesota Energy Transition Plan.
Section 116J.55 — Community Energy Transition Grants.
Section 116J.571 — Creation Of Accounts.
Section 116J.572 — Definitions.
Section 116J.574 — Grant Applications.
Section 116J.5762 — Loan Applications.
Section 116J.5763 — Priorities.
Section 116J.5764 — Loan Terms And Conditions.
Section 116J.5765 — Nonliability.
Section 116J.578 — Bioscience Subsidy.
Section 116J.60 — Promotional Expenses.
Section 116J.617 — Tourism Loan Program.
Section 116J.63 — Sale Of Pamphlets And Publications; Fees; Advertising.
Section 116J.64 — Loans To Indians.
Section 116J.658 — Minnesota Science And Technology Economic Development Project.
Section 116J.871 — Financial Assistance Limitations; Prevailing Wage.
Section 116J.872 — Economic Response Team.
Section 116J.8731 — Minnesota Investment Fund.
Section 116J.8732 — Seed Capital Investment Credit; Commissioner's Responsibilities.
Section 116J.8737 — Small Business Investment Tax Credit.
Section 116J.8738 — Qualified Expansions Of Greater Minnesota Businesses.
Section 116J.8745 — Microenterprise Entrepreneurial Assistance.
Section 116J.8747 — Job Training Program Grant.
Section 116J.8748 — Minnesota Job Creation Fund.
Section 116J.8749 — Main Street Economic Revitalization Program.
Section 116J.551 — Creation Of Accounts.
Section 116J.552 — Definitions.
Section 116J.553 — Grant Applications.
Section 116J.555 — Priorities.
Section 116J.556 — Local Match Requirement.
Section 116J.557 — Cost Recovery Actions.
Section 116J.558 — Effect Of Issuance Of Grants.
Section 116J.66 — Business Assistance.
Section 116J.68 — Bureau Of Small Business.
Section 116J.69 — Uniform Business Licensing Policy.
Section 116J.70 — Definitions.
Section 116J.71 — New Licenses.
Section 116J.72 — Existing Licenses.
Section 116J.73 — Bureau Of Business Licenses; Declaration Of Purpose.
Section 116J.74 — Definitions.
Section 116J.76 — General Functions; Powers And Duties.
Section 116J.77 — Assistance Of Other Agencies.
Section 116J.78 — Comprehensive License Information.
Section 116J.79 — Preapplication Conferences.
Section 116J.80 — Master Application Procedure.
Section 116J.81 — License Coordination And Assistance To Applicants.
Section 116J.82 — Consolidated Hearings.
Section 116J.83 — License Authority Retained.
Section 116J.84 — Services Provided At No Charge.
Section 116J.85 — Federal And Local Government Participation.
Section 116J.86 — Compilation And Maintenance Of Statistical Data.
Section 116J.876 — Definitions.
Section 116J.8761 — Capital Access Program; Creation; Administration.
Section 116J.8762 — Commissioner; Duties.
Section 116J.8763 — Eligible Loans.
Section 116J.8764 — Enrollment Of Loans In Program.
Section 116J.8765 — Reserve Fund; Premiums.
Section 116J.8766 — Claims By Lender To Reserve Fund.
Section 116J.8767 — Subrogation Of Claims.
Section 116J.8768 — Excess Reserve Funds.
Section 116J.8769 — Termination.
Section 116J.8770 — Equity Investments.
Section 116J.881 — Small Business Loan Guarantee Program.
Section 116J.955 — Rural Rehabilitation Revolving Account.
Section 116J.966 — Commissioner's Trade Promotion Duties.
Section 116J.976 — State Approval Of Government Procurement Agreements.
Section 116J.978 — Minnesota Trade Offices In Foreign Markets.
Section 116J.9781 — Invest Minnesota.
Section 116J.979 — Minnesota Step Grants.
Section 116J.980 — Community Development.
Section 116J.982 — Community Development Corporations.
Section 116J.9922 — Central Minnesota Opportunity Grant Program.
Section 116J.9923 — Telecommuter Forward! Certification.
Section 116J.9924 — Targeted Community Capital Project Grant Program.
Section 116J.993 — Definitions.
Section 116J.994 — Regulating Local And State Business Subsidies.
Section 116J.995 — Economic Grants.
Section 116J.996 — Military Reservist Economic Injury And Veteran-owned Small Business Loans.