Current through Register Vol. 48, No. 26, December 26, 2023
Subpart 1.
Collateral requirements.
The board shall require collateral as it considers
necessary in accordance with generally accepted commercial lending practices to
protect the interests of the board in the financial assistance. At a minimum,
the collateral will take one or more of the following forms:
A. mortgage on real property;
B. security position on personal
property;
C. security of its
financial assistance with assets being financed by the financial assistance and
other assets of the company to protect the interests of the state's financial
participation;
D. letter of credit
or equivalent instrument;
E.
guarantees or other assurances of repayment of affiliates of the applicant or
other interested parties with respect thereto;
F. guarantees or other assurances of
repayment of shareholders or partners who have 20 percent or more ownership in
the applicant;
G. bond insurance or
other credit enhancements; and
H.
assignments of leases or rents on property or equipment.
Subp. 2.
Additional information or certifications.
The following additional information, as applicable, is
required by the board prior to disbursing financial assistance, as well as any
other information that the board in its sole discretion considers advisable for
prudent financial management of board financial assistance:
A. a lease agreement on property or
equipment;
B. a listing of
property, including serial numbers for machinery and equipment, that will serve
as collateral to the financial assistance;
C. certification of insurance for workers'
compensation and employer's liability;
D. a statement provided by the Internal
Revenue Service of tax clearance;
E. an appraisal of collateral offered to the
board for the financial assistance; and
F. a certificate of the insurers of all
collateral that insurance is in force and effect. Prior to expiration of any
insurance policy, the applicant shall furnish the commissioner with evidence
that the policy has been renewed, replaced, or is no longer required.
10 SR 475; L 1987 c 386
art 2 s 22,23
Statutory Authority: MS s
41A.04
