116J.876 DEFINITIONS. Subdivision 1. Terms. For the purposes of this section and sections 116J.8761 to 116J.8769, the terms defined in this section have the meanings given them. Subd. 2. Agreement. “Agreement” means an agreement between a lender and the commissioner under which a lender may participate in the program. Subd. 3. Borrower. “Borrower” means the […]
116J.8761 CAPITAL ACCESS PROGRAM; CREATION; ADMINISTRATION. (a) A capital access program is created in the Department of Employment and Economic Development. The purpose of the capital access program is to provide capital to businesses, particularly small and medium-sized businesses, to foster economic development. Capital may be provided in the form of equity investments for community […]
116J.8762 COMMISSIONER; DUTIES. Subdivision 1. Duties. The commissioner must: (1) with respect to loans: (i) market the capital access program to businesses and other persons in the state in cooperation with financial institutions and statewide associations representing financial institutions; (ii) establish a reservation or allocation system so that lenders may reserve an allocation of funds […]
116J.8763 ELIGIBLE LOANS. Subdivision 1. Loan types. Eligible loans may include: (1) loans made for industrial, commercial, or agricultural purposes; (2) refinancing of loans made for the purposes in clause (1); and (3) lines of credit agreements established between the lender and borrower which are used for the purposes in clause (1). Subd. 2. Loan […]
116J.8764 ENROLLMENT OF LOANS IN PROGRAM. Subdivision 1. Filing requirements. (a) To enroll a loan under this program, the lender must file a completed loan enrollment form with the commissioner. The lender must also certify the following to the commissioner as part of the filing: (1) the lender has no substantial reason to believe that […]
116J.8765 RESERVE FUND; PREMIUMS. Subdivision 1. Creation. Upon execution of an agreement between the lender and the commissioner, the commissioner shall establish a reserve fund account with the lender in the name of the commissioner for the purpose of receiving all required premium charges to be paid by the lender and the borrower and transfers […]
116J.8766 CLAIMS BY LENDER TO RESERVE FUND. Subdivision 1. Claim process. (a) If the lender charges off all or part of an enrolled loan, the lender may file a claim with the commissioner. The claim must be filed contemporaneously with the charge-off. (b) The lender’s claim may include, in addition to the amount of principal […]
116J.8767 SUBROGATION OF CLAIMS. Subdivision 1. Limitation. The commissioner may exercise the right of subrogation under this section if the commissioner determines, in the commissioner’s discretion, that the lender has not exercised reasonable care and diligence in its collection activities with respect to the loan or that there is a reasonable basis for believing that […]
116J.8768 EXCESS RESERVE FUNDS. Subdivision 1. Reports. The lender shall file quarterly reports with the commissioner indicating the number and aggregate outstanding balance of all enrolled loans as of the end of each quarter. A quarterly report is not required for any quarter that ends with a balance in the reserve fund of zero, except […]
116J.8769 TERMINATION. The commissioner may terminate the obligation to a lender to enroll loans under the program if the commissioner determines that the lender is not in substantial compliance with the requirements of the program. The termination takes effect on the date specified in the notice of termination, except that the termination does not apply […]
116J.8770 EQUITY INVESTMENTS. The commissioner may invest funds from the capital access account to make equity investments in community development venture capital funds for the purpose of providing capital for small and emerging businesses. The community development venture capital fund must have experience in equity investments with small businesses and the ability to raise private […]
116J.8771 WAIVER. The capital access program is exempt from section 16C.05, subdivision 2, paragraph (b). History: 2001 c 153 s 5; 1Sp2003 c 1 art 2 s 64
