1.1 	A bill for an act
1.2 	relating to agriculture; changing certain limits on
1.3 	agriculture best management practices loans; amending
1.4 	Minnesota Statutes 2004, section 17.117, subdivision
1.5 	11.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2004, section 17.117,
1.8 	subdivision 11, is amended to read:
1.9 		Subd. 11.Loans issued to borrower.  (a) Local lenders
1.10 	may issue loans only for projects that are approved and
1.11 	certified by the local government unit as meeting priority needs
1.12 	identified in a comprehensive water management plan or other
1.13 	local planning documents, are in compliance with accepted
1.14 	practices, standards, specifications, or criteria, and are
1.15 	eligible for financing under Environmental Protection Agency or
1.16 	other applicable guidelines.
1.17 	(b) The local lender may use any additional criteria
1.18 	considered necessary to determine the eligibility of borrowers
1.19 	for loans.
1.20 	(c) Local lenders shall set the terms and conditions of
1.21 	loans to borrowers, except that:
1.22 	(1) no loan to a borrower may exceed $50,000 $100,000;
1.23 	(2) no loan for a project may exceed $50,000 $100,000; and
1.24 	(3) no borrower shall, at any time, have multiple loans
1.25 	from this program with a total outstanding loan balance of more
2.1 	than $50,000 $100,000.
2.2 	(d) The maximum term length for conservation tillage and
2.3 	individual sewage treatment system projects is five years.  The
2.4 	maximum term length for other projects in this paragraph is ten
2.5 	years.
2.6 	(e) Fees charged at the time of closing must:
2.7 	(1) be in compliance with normal and customary practices of
2.8 	the local lender;
2.9 	(2) be in accordance with published fee schedules issued by
2.10 	the local lender;
2.11 	(3) not be based on participation program; and
2.12 	(4) be consistent with fees charged other similar types of
2.13 	loans offered by the local lender.
2.14 	(f) The interest rate assessed to an outstanding loan
2.15 	balance by the local lender must not exceed three percent per
2.16 	year.