Minnesota Administrative Code

1650.0071 REVIEW OF LOAN AND COLLATERAL. Subpart 1. Inspection. At any time during the term of a basic beginning farmer first mortgage loan, the RFA or the state legislative auditor may inspect the books, records, documents, and accounting practices of the lender relative to the …

1650.0501 APPLICABILITY AND PURPOSE. Subpart 1. Applicability. Parts 1650.0501 to 1650.0571 establish the criteria and procedures to be used by the RFA in administering the agricultural development bond beginning farmer loan program authorized by Minnesota Statutes, chapter 41C. …

1650.0511 DEFINITIONS. Subpart 1. Scope. The definitions in this part apply to parts 1650.0501 to 1650.0571. Subp. 2. Act. "Act" means the Minnesota Agricultural Development Act in Minnesota Statutes, chapter 41C. Subp. 3. Agricultural farmland. "Agricultural farmland" means prod…

1650.0521 BORROWER ELIGIBILITY. Subpart 1. Eligibility. To be eligible for a loan under the program an applicant must be an eligible borrower. Subp. 2. Certification. An applicant must certify to the authority in each loan application that the applicant understands and meets the …

1650.0531 OPERATION OF PROGRAM. Subpart 1. Loan transactions and security. A. The authority shall make unsecured loans to eligible borrowers for eligible purposes under a loan agreement between the authority as lender and the eligible borrower as borrower. The loans must be evide…

1650.0541 APPLICATION PROCEDURES. Subpart 1. Application. A. An applicant and an eligible lender who wish to request the authority to make a loan to the applicant and issue a bond to the lender to fund the loan must jointly complete, sign, and submit an application to the authori…

1650.0551 HEARING AND OTHER PROCEDURAL REQUIREMENTS. Subpart 1. Hearing and approval requirement. Under section 147(f) of the code, in order to make the interest payable on a bond excludable from gross income for federal tax purposes, prior to the issuance of the bond the authori…

1650.0561 LOAN DOCUMENTS; CLOSING PROCEDURES. Subpart 1. Loan documents. The executive director shall provide standard forms of all loan documents and closing documents necessary to evidence a bond and related loan transaction to all applicants and prospective lenders. All bond a…

1650.0571 GENERAL MATTERS. Subpart 1. Forms. The executive director shall provide forms necessary for administration and implementation of the program. The number and type of forms must be sufficient to safeguard the interests of the authority. Subp. 2. Waivers. The authority or …

1650.0601 APPLICABILITY AND PURPOSE. Subpart 1. Applicability. Parts 1650.0601 to 1650.0661 establish the criteria and procedures to be used by the RFA in administering the agricultural improvement loan program authorized by Minnesota Statutes, section 41B.043. Subp. 2. Purpose. …

1650.0611 DEFINITIONS. Subpart 1. Scope. The definitions in this part apply to parts 1650.0601 to 1650.0651. Subp. 2. Agricultural improvements. "Agricultural improvements" has the meaning given in Minnesota Statutes, section 41B.02, subdivision 19. Subp. 3. Agricultural improvem…

1650.0621 DIRECT LOANS. Subpart 1. Borrower eligibility. To receive a direct loan under the agricultural improvement loan program, an applicant must meet the criteria in items A to G. A. The applicant must be a resident of Minnesota or a domestic family farm corporation as define…

1650.0661 LOAN PARTICIPATION. Subpart 1. Borrower eligibility. To be eligible for assistance through a loan participation under the agricultural improvement loan program, an applicant must meet the criteria in items A to E. A. The applicant must meet the requirements of Minnesota…

1651.0011 APPLICABILITY AND PURPOSE. Subpart 1. Applicability. Parts 1651.0011 to 1651.0101 establish the criteria and procedures to be used by the RFA in administering the seller-sponsored loan participation program authorized by Minnesota Statutes, chapter 41B. Subp. 2. Purpose…

1651.0021 DEFINITIONS. Subpart 1. Scope. The definitions in this part apply to parts 1651.0011 to 1651.0101. Subp. 2. Agricultural purposes or farming. "Agricultural purposes" or "farming" means the cultivation or use of land or land improvements and personal property for the pro…

1651.0031 SELLER ELIGIBILITY. To qualify as an eligible seller under the program, a seller must meet the following criteria: A. a seller must be in compliance with Minnesota Statutes, section 500.24, and selling a farm located within Minnesota; B. the seller must complete a selle…

1651.0041 BORROWER ELIGIBILITY. Subpart 1. Criteria. To be eligible for assistance under the seller-sponsored program, all applicants must meet the criteria in subpart 2. Applicants must also meet the requirements of either subpart 3 or 4. Subp. 2. General eligibility criteria. E…

1651.0051 LENDER ELIGIBILITY. Subpart 1. Statutory eligibility. A bank, credit union, or savings association chartered by the state or federal government, a subdivision of the Farm Credit System (Agri Bank), the Federal Deposit Insurance Corporation, or an insurance company, fund…

1651.0061 APPLICATION PROCESS AND OFFER OF PARTICIPATION. Subpart 1. Request for a first mortgage loan. A sponsoring seller and an applicant must jointly present an initial proposal to an approved lender. The proposal must include a signed and dated purchase agreement and a compl…

1651.0071 RFA REVIEW, NOTICE, AND APPEAL. Subpart 1. RFA review. The RFA shall accept or reject a lender's offer to participate in the loan within 30 business days after receipt of the lender's offer. If the documentation is not sufficient to make a determination, the RFA may req…

1651.0081 LOAN CLOSING, PURCHASE OF PARTICIPATION, AND LOAN MANAGEMENT. Subpart 1. Closing. Upon receiving notification of RFA acceptance, the lender shall close the first mortgage loan. At the time of closing, the sponsoring seller must present all legal documents relating to th…

1651.0091 PARTICIPATION REPURCHASE. A. An originating lender is under no obligation to repurchase any RFA participation interest in a seller-sponsored first mortgage loan except as provided in this part. B. A lender may, at its option and upon written approval by the RFA, repurch…

1651.0101 REVIEW OF LOAN AND COLLATERAL. Subpart 1. Inspection. At any time during the term of a seller-sponsored first mortgage loan, the RFA or the state legislative auditor may inspect the books, records, documents, and accounting practices of the lender relative to the loan t…

1652.0010 ESTABLISHMENT OF PROGRAM; PROGRAM RULES. Subpart 1. Establishment of program. The authority, by its Resolution No. 92-06, has established an agricultural business enterprise loan program, comprising the issuance of bonds to finance loans to be made to a small business, …

1652.0020 DEFINITIONS. Subpart 1. Scope. The definitions in this part apply to parts 1652.0010 to 1652.0080. Subp. 2. Act. "Act" means the Minnesota Agricultural Development Act, Minnesota Statutes, chapter 41C. Subp. 3. Agricultural business activity. "Agricultural business acti…

1652.0030 BORROWER ELIGIBILITY. Subpart 1. Eligibility. To be eligible for a loan under the program an applicant must be an eligible borrower. Subp. 2. Certification. An applicant must certify to the authority in each loan application that the applicant understands and meets the …

1652.0040 OPERATION OF PROGRAM. Subpart 1. Loan transactions and security. A. The authority shall make loans to eligible borrowers for eligible purposes pursuant to a loan agreement between the authority as lender and the eligible borrower as borrower. The loans must be evidenced…

1652.0050 APPLICATION PROCEDURES. Subpart 1. Application. A. An applicant and an eligible lender who wish to request the authority to make a loan to the applicant and issue a bond to the lender to fund the loan must jointly complete, sign, and submit to the authority an applicati…

1652.0060 HEARING AND OTHER PROCEDURAL REQUIREMENTS. Subpart 1. Hearing and approval requirement. Under section 147(f) of the code, in order to make the interest payable on a bond excludable from gross income for federal tax purposes, prior to the issuance of the bond, the author…

1652.0070 LOAN DOCUMENTS; CLOSING PROCEDURES. Subpart 1. Loan documents. The executive director shall cause to be prepared and revised from time to time as necessary, standard forms of all loan documents and closing documents necessary to evidence a bond and related loan transact…

1652.0080 GENERAL MATTERS. Subpart 1. Forms. The executive director shall prepare and, as needed, revise and amend forms necessary for administration and implementation of the program. The number and type of forms must be sufficient to safeguard the interests of the authority. Th…

1653.0011 APPLICABILITY AND PURPOSE. Subpart 1. Applicability. Parts 1653.0011 to 1653.0111 establish the criteria and procedures to be used by the RFA in administering the restructure participation program authorized by Minnesota Statutes, section 41B.04. Subp. 2. Purpose. The p…

1653.0021 DEFINITIONS. Subpart 1. Scope. The definitions in this part apply to parts 1653.0011 to 1653.0111 and the master participation agreement. Subp. 2. Agricultural purposes. "Agricultural purposes" means the cultivation or use of land, land improvements, and personal proper…

1653.0031 BORROWER ELIGIBILITY. Subpart 1. Criteria. To be eligible for assistance under the RFA restructure II program, an applicant must meet the criteria in subpart 2. Subp. 2. General requirements. Each applicant must: A. meet the requirements of Minnesota Statutes, section 4…

1653.0041 COLLATERAL REQUIREMENTS. The RFA may participate only in loans that do not exceed 80 percent of the appraised value of the real estate offered for collateral. Additional collateral may be required based on the depreciability and saleability of the collateral and creditw…

1653.0051 APPRAISAL. The appraisal to determine appraised value must be completed by a person with knowledge of agricultural appraising that is approved by both the lender and the RFA. An appraisal must be completed in a manner approved by the appraisal industry and must contain …

1653.0061 LENDER ELIGIBILITY. Subpart 1. Statutory eligibility. Any bank, credit union, or savings association chartered by the state or federal government, a subdivision of the farm credit system (Agri Bank), the Federal Deposit Insurance Corporation, or any insurance company, f…

1653.0071 APPLICATION PROCESS AND OFFER OF PARTICIPATION. Subpart 1. Request for a first mortgage loan. A lender and an applicant must jointly complete and sign an application and prepare all supporting documents identified in the application. Financial statements must be dated w…

1653.0081 RFA REVIEW, NOTICE, APPEAL. Subpart 1. RFA review. Within 30 days after receipt of a lender's offer the RFA shall accept or reject the lender's offer to participate in the loan. If the documentation is not sufficient to make a determination, the RFA may request addition…

1653.0091 LOAN CLOSING, PURCHASE OF PARTICIPATION, AND LOAN MANAGEMENT. Subpart 1. Closing. Upon receiving notification of RFA acceptance, the lender shall close the first mortgage loan. The lender must record security documents relating to the loan. The lender must notify the RF…

1653.0101 PARTICIPATION REPURCHASE. An originating lender is under no obligation to repurchase an RFA participation interest in a restructure first mortgage loan covered by parts 1653.0011 to 1653.0111 except as provided in this part. A lender may, at its option and upon written …

1653.0111 REVIEW OF LOAN AND COLLATERAL. Subpart 1. Inspection. At any time during the term of a restructure first mortgage loan, the RFA or the state legislative auditor may inspect the books, records, documents, and accounting practices of the lender relative to the loan to det…

1654.0010 ESTABLISHMENT OF PROGRAM; PROGRAM RULES. Subpart 1. Establishment of program. The authority, by its Resolution No. 93-07 has established an ethanol production facility loan program to provide financial assistance for ethanol production facilities. Subp. 2. Authority and…

1654.0020 DEFINITIONS. Subpart 1. Scope. The definitions in this part apply to parts 1654.0010 to 1654.0070. Subp. 2. Applicant. "Applicant" means an individual, corporation, limited liability company, cooperative, partnership, or joint venture who submits a completed application…

1654.0030 ASSISTANCE APPLICATIONS. Subpart 1. In general. To apply for assistance from the authority under the program, an applicant must submit a completed application which is dated and signed by an owner, general partner, or an authorized officer of the applicant. Subp. 2. Con…

1654.0040 COLLATERAL REQUIREMENTS AND ADDITIONAL INFORMATION OR CERTIFICATIONS. Subpart 1. Collateral requirements. When providing financial assistance, the authority may require collateral as it considers necessary in accordance with generally accepted commercial lending practic…

1654.0050 APPLICATION PROCESSING. Subpart 1. Fees. A. The applicant shall submit to the authority with the application a check payable to the Department of Agriculture in the amount of $2,000 as an application fee. The fee is not refundable. B. A loan origination fee equal to 1-1…