Permanent Rules (Annotated) Livestock Expansion Loan Program
Subpart 1. Applicability. These rules establish the criteria and procedures to be used by the Rural Finance Authority in the administration of the Livestock Expansion Loan Program authorized by Minnesota Statutes, Section 41B.045.
Subpart 2. Purpose. The purpose of the RFA Livestock Expansion Loan Program and for the issuance of bonds to finance the program is to promote livestock in the state and encourage the adoption of efficient, state of the art production facilities and practices. This is accomplished by participating in loans made to applicants who meet the eligibility requirements in the Rules. The repayment of the loans must be secured by first mortgage liens on real property.
Subpart 1. "Applicant" means a potential borrower who submits an application to the RFA through an eligible lender.
Subpart 2. "Application" means the application for a loan participation under the Livestock Expansion Loan Program in the form provided by the RFA.
Subpart 3. "Assets" means all property, real or personal, tangible or intangible, and all valuable contract rights, including cash crops or feed on hand, livestock held for sale, breeding stock, marketable bonds and securities, securities not readily marketable, accounts receivable, notes receivable, cash invested in growing crops, cash value of life insurance, machinery and equipment, cars, trucks, farm and other real estate including life estates and personal residence, and the value of a beneficial interest in trusts.
Subpart 4. "Borrower" means the person or persons liable on a Mortgage Loan made under this Program. Borrower may also be a domestic family farm corporation or a family farm partnership, as defined in Minnesota Statutes, Section 500.24.
Subpart 5. "Collateral" means all assets pledged as security for a borrower's obligation under a Mortgage Loan made under the Program. It includes all assets, guarantees, money, letters of credit, assignment of collateral or pledge for a loan on which the lender has a security interest or lien.
Subpart 6. "Executive Director" means the Executive Director of the RFA or any other officer duly authorized to act on behalf of the RFA Board or its Executive Director.
Subpart 7. "Fixture" means an article in the nature of personal property that has been affixed or annexed to Real Estate so that it is regarded as a part of the real property. A thing is deemed to be affixed or annexed to Real Estate when it is attached to it by roots, imbedded in it, permanently resting upon it, or permanently attached to it, as by means of cement, plaster, nails, bolts or screws.
Subpart 8. "Liabilities" means all debts or other obligations for which an applicant is responsible, including accounts payable, notes or other indebtedness owed, taxes, rent, amounts owed on real estate contracts or mortgages, judgments, and accrued interest payable.
Subpart 9. "Livestock Expansion" shall have the same meaning as defined is Statute 41B.02, subd. 10a. (Means improvements to a livestock operation, including the purchase and construction or installation of improvements to land, buildings, and other permanent structures, including equipment incorporated in or permanently affixed to the land, buildings, or structures, which are useful for and intended to be used for the purpose of raising livestock).
Subpart 10. "Livestock Expansion Loan Program" or "Program" means the program authorized and created by Minnesota Statutes, Section 41B.045.
Subpart 11. "Livestock Operation" means the use of land or land improvements and personal property for the production of livestock as defined in Minnesota Statutes, section 17A.03, subdivision 5, dairy products, and poultry or poultry products. Livestock operation also includes the use of wetlands, pasture, forest land, wildlife, and homestead and other real property associated with the agricultural use of land. Livestock operation also includes the practices and facilities needed to conserve soil and water, protect human and animal health, to have a safe and efficient operation, and to meet local, state, and federal laws and regulations relating to the operation.
Subpart 12. "Mortgage Loan" or "Loan" means a loan participation under the Program which is secured by a first mortgage on real property.
Subpart 13. "Net Worth" means the total value of an applicant's assets and the assets of the applicant's spouse and dependents, less the liabilities of the same parties.
Subpart 14. "Real Estate" or "Real Property" means land and anything permanently affixed to the land, such as buildings, fences, and those things attached to the buildings, such as light fixtures, plumbing and heating fixtures, and other items that would be personal property if not attached.
Subpart 15. "RFA" means the Rural Finance Authority established by Minnesota Statutes, Section 41B.025.
To be eligible for assistance under the Livestock Expansion Loan Program, applicants must meet the following criteria:
A lender is under no obligation to repurchase an RFA participation interest in a livestock expansion mortgage loan except as provided in this part. A lender may, at its option and upon written approval by the RFA, repurchase an RFA participation interest at anytime. A lender must repurchase the RFA participation interest whenever the first mortgage loan is paid in full or refinanced. A lender must repurchase the RFA participation interest if the lender:
A repurchase under this part must be for the outstanding and unpaid principal balance of the RFA participation plus accrued interest and any penalties or costs incurred by the RFA to secure repurchase.
Ryan Roles, Senior Loan OfficerRyan.Roles@state.mn.us ~ 651-201-6666Finance & Budget Division