Minnesota Administrative Rules
Agency 107 - Agricultural and Economic Development Board
Chapter 1580 - AGRICULTURAL AND ECONOMIC DEVELOPMENT PROGRAM
Part 1580.0800 - PRINCIPAL AND INTEREST ASSISTANCE
Current through Register Vol. 48, No. 39, March 25, 2024
Subpart 1. Availability of assistance.
The board may at any time enter into a written contract with the borrower to pay the lender, an amount not greater than the amount of principal and interest to become due on one or more subsequent dates, without acceleration, if the board determines that:
Subp. 2. Terms of assistance.
All sums advanced for principal and interest assistance and interest on those amounts must be secured by the best available collateral and security interest granted by the loan agreement, but none of the advances made thereafter be repaid to the board until and unless all principal and interest currently due on the loan has been fully paid. In the event of subsequent default by the borrower, acceleration by the lender, and payment by the board of the full amount due under the loan guarantee or bonds, the board is subrogated to the rights of the lender with respect to the principal paid by it under the contract. Upon payment of the loan in full, with accrued interest, the remaining amount of the advances and interest on the advances may be paid to the board.
Statutory Authority: MS s 41A.04