Key: (1) language to be deleted (2) new language
Laws of Minnesota 1988 CHAPTER 474-S.F.No. 1622 An act relating to agriculture; clarifying which debtors are eligible for mediation; amending Minnesota Statutes 1986, section 583.24, subdivision 2; Minnesota Statutes 1987 Supplement, section 583.26, subdivision 5. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: Section 1. [PURPOSE.] The purpose of this act is to clarify the meaning of Minnesota Statutes, section 583.24, subdivision 2, paragraph (b), which provides that a debtor who owns and leases less than 60 acres is ineligible for mediation if that debtor has less than $20,000 in gross sales of agricultural products the preceding year. It is and has been the intent of the legislature that a debtor who owns and leases 60 acres or more is eligible for mediation regardless of the amount of gross income from agricultural products. Sec. 2. Minnesota Statutes 1986, section 583.24, subdivision 2, is amended to read: Subd. 2. [DEBTORS.] (a) Except as provided in paragraph (b) the farmer-lender mediation act applies to a debtor who is: (1) a person operating a family farm as defined in section 500.24, subdivision 2; (2) a family farm corporation as defined in section 500.24, subdivision 2; or (3) an authorized farm corporation as defined in section 500.24, subdivision 2. (b) The farmer-lender mediation act does not apply to a debtor who owns and leases less than 60 acreswithif the debtor has less than $20,000 in gross sales of agricultural products the preceding year. Sec. 3. Minnesota Statutes 1987 Supplement, section 583.26, subdivision 5, is amended to read: Subd. 5. [EFFECT OF MEDIATION PROCEEDING NOTICE.] (a) Except as provided in paragraphs (b), (c), and (d), if a creditor receives a mediation proceeding notice under subdivision 4 the creditor and the creditor's successors in interest may not begin or continue proceedings to enforce a debt subject to the farmer-lender mediation act against agricultural property of the debtor under chapter 580 or 581 or sections 336.9-501 to 336.9-508, to terminate a contract for deed to purchase agricultural property under section 559.21, or to garnish, levy on, execute on, seize, or attach agricultural property until 90 days after the date the debtor files a mediation request with the director. (b) Except as provided in paragraph (c), if a creditor is an agency of the United States and receives a mediation proceeding notice under subdivision 4, the creditor and the creditor's successors in interest may not begin or continue proceedings to enforce a debt against agricultural property of the debtor under chapter 580 or 581 or sections 336.9-501 to 336.9-508, to terminate a contract for deed to purchase agricultural property under section 559.21, or to garnish, levy on, execute on, seize, or attach agricultural property until18090 days after the date the debtor files a mediation request with the director. (c) Notwithstanding paragraphs (a) and (b) or subdivision 1, a creditor receiving a mediation proceeding notice may begin proceedings to enforce a debt against agricultural property of the debtor: (1) at the time the creditor receives a mediator's affidavit of the debtor's lack of good faith under section 583.27; or (2) five days after the date the debtor and creditor sign an agreement allowing the creditor to proceed to enforce the debt against agricultural property if the debtor has not rescinded the agreement within the five days. (d) A creditor receiving a mediation proceeding notice must provide the debtor by the initial mediation meeting with copies of notes and contracts for debts subject to the farmer-lender mediation act and provide a statement of interest rates on the debts, delinquent payments, unpaid principal balance, a list of all collateral securing debts, a creditor's estimate of the value of the collateral, and debt restructuring programs available by the creditor. (e) The provisions of this subdivision are subject to section 583.27, relating to extension or reduction in the period before a creditor may begin to enforce a debt and court-supervised mediation. Sec. 4. [EFFECTIVE DATE.] Sections 1 to 3 are effective the day after final enactment. Approved April 7, 1988
Official Publication of the State of Minnesota
Revisor of Statutes