Subdivision 1. Claim process. (a) If the lender charges off all or part of an enrolled loan, the lender may file a claim with the commissioner. The claim must be filed contemporaneously with the charge-off.
(b) The lender's claim may include, in addition to the amount of principal charged off plus accrued interest, one-half of the documented out-of-pocket expenses incurred in pursuing its collection efforts, including preservation of collateral. The amount of principal and accrued interest included in the claim may not exceed the principal amount covered under the program upon enrollment, plus accrued interest attributable to the covered principal amount.
(c) The lender shall determine when and how much to charge off on an enrolled loan in a manner consistent with its normal method for making these determinations on similar loans which are not enrolled loans.
(d) If the lender files two or more claims contemporaneously and there are insufficient funds in its reserve fund at that time to cover the entire amount of the claims, the lender may designate the order of priority in which the commissioner shall pay the claims.
Subd. 2. Disbursement of reserve fund. (a) Upon receipt by the commissioner of a claim filed by the lender, the commissioner shall, within ten business days, pay or authorize the lender to withdraw from the reserve fund the amount of the claim as submitted, unless the information provided by the lender was known by the lender to be false at the time the loan was filed for enrollment. No other violation of sections 116J.876 to 116J.8769 or the agreement is grounds for denial of a claim. All money transferred or credited to the reserve fund from any source is appropriated to the commissioner to pay claims under this section.
(b) If there is insufficient money in the reserve fund to cover the entire amount of the lender's claim, the commissioner shall pay to the lender or authorize the lender to withdraw an amount equal to the current balance in the reserve fund and the following shall apply:
(1) If the enrolled loan for which the claim has been filed is not an early loan, the payment fully satisfies the claim, and the lender has no right to receive any further amount from the reserve fund with respect to that claim.
(2) If the loan is an early loan, the partial payment does not satisfy the lender's claim, and at any time that the remaining balance of the claim is not greater than 75 percent of the balance in the reserve fund at the time of the loss, the commissioner, upon request of the lender, shall pay the remaining balance of the claim.
Subd. 3. Recovery by lender subsequent to claim. (a) If, subsequent to payment of a claim by the commissioner, the lender recovers from a borrower any amount for which payment of the claim was made, the lender shall promptly pay to the commissioner for deposit in the reserve fund the amount recovered, less one-half of any documented out-of-pocket expenses incurred. The lender need pay to the commissioner for deposit in the reserve fund only amounts in excess of the amount of recovery needed to fully cover the lender's loss on an enrolled loan.
(b) For the purposes of this subdivision and section 116J.8767, the lender's loss on an enrolled loan includes any losses on the loan including principal, accrued interest, and one-half of the documented out-of-pocket expenses attributable to principal amounts in excess of the amount covered under the program or the principal amount included in the claim.
Subd. 4. Technical assistance. When a borrower becomes 60 days delinquent in the payments of an enrolled loan or before a lender files a claim with the commissioner, the lender must notify the commissioner of the delinquency. The commissioner, after notification, shall inform the borrower of the technical assistance providers in the borrower's area that may assist in solving any business or management problems experienced by the borrower.
1989 c 335 art 1 s 152; 1990 c 423 s 4; 1991 c 345 art 1 s 72
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.