Minnesota Administrative Rules

4305.0080 SECURITY REQUIREMENTS.

The agency must require applicants to provide security for the loan equal to or in excess of the loan value. Security may be in the form of one or more of the following:

A.

a lien on real property owned by the applicant; or

B.

other security satisfactory to the agency such as:

(1)

a senior, junior, or parity lien on other assets of the applicant;

(2)

a senior, junior, or parity lien on assets of certain owners, officers, and affiliated proprietors and their spouses, partners and their spouses, and major shareholders or corporate officers; or

(3)

a guaranty of owners; officers; and affiliated persons of the applicant, including partners and their spouses, and major shareholders or corporate officers and their spouses; or other related corporations of the applicant.

Statutory Authority:

MS s 14.389; 116J.996

History:

33 SR 2052

Published Electronically:

July 21, 2009