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 $400,000, 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.
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; 2009 c 94 art 1 s 86; 2015 c 44 s 24
Structure Minnesota Statutes
Chapters 17 - 43 — Agriculture
Chapter 41B — Rural Finance Authority
Section 41B.01 — Citation; Purpose.
Section 41B.025 — Rural Finance Authority.
Section 41B.026 — Telephone Or Electronic Meeting.
Section 41B.03 — Borrower Eligibility Criteria.
Section 41B.036 — General Powers Of The Authority.
Section 41B.037 — Homestead Redemption Program.
Section 41B.038 — Programs For Commitments To Other Entities.
Section 41B.039 — Beginning Farmer Program.
Section 41B.0391 — Beginning Farmer Program; Tax Credits.
Section 41B.04 — Loan Restructuring Program.
Section 41B.042 — Seller-sponsored Program.
Section 41B.043 — Agricultural Improvement Loan Program.
Section 41B.044 — Ethanol Development Program.
Section 41B.045 — Livestock Expansion And Modernization Loan Program.
Section 41B.046 — Value-added Agricultural Product Loan Program.
Section 41B.047 — Disaster Recovery Loan Program.
Section 41B.048 — Agroforestry Loan Program.
Section 41B.049 — Methane Digester Loan Program.
Section 41B.055 — Livestock Equipment Loan Program.
Section 41B.056 — Pilot Agricultural Microloan Program.
Section 41B.057 — Farm Opportunity Loan Program.
Section 41B.06 — Rural Finance Authority Revolving Loan Account.
Section 41B.08 — Revenue Bonds; Purposes, Terms, Approval.
Section 41B.09 — Revenue Bonds; Resolutions Authorizing, Additional Terms, Sale.
Section 41B.10 — Revenue Bonds; Optional Resolution And Contract Provisions.
Section 41B.12 — Revenue Bonds; Nonliability Of Individuals.
Section 41B.13 — Revenue Bonds; Purchase And Cancellation By Authority.
Section 41B.14 — Revenue Bonds; Nonliability Of State.
Section 41B.15 — State Pledge Against Impairment Of Contracts.
Section 41B.16 — Security Account.
Section 41B.17 — Powers And Duties Of Trustee.
Section 41B.18 — Revenue Bond Fund; Reports.
Section 41B.19 — General Obligation Bonds.
Section 41B.195 — Additional Use Of General Obligation Bonds.
Section 41B.20 — Exemption From Taxes.
Section 41B.21 — Certain Actions.
Section 41B.211 — Data Privacy.