Form AG-03309 "Rural Finance Authority Loan Agreement and Note for Rfa Farm Opportunity Loan Participation Program (Only)" - Minnesota

What Is Form AG-03309?

This is a legal form that was released by the Minnesota Department of Agriculture - a government authority operating within Minnesota. As of today, no separate filing guidelines for the form are provided by the issuing department.

Form Details:

  • Released on April 9, 2021;
  • The latest edition provided by the Minnesota Department of Agriculture;
  • Easy to use and ready to print;
  • Quick to customize;
  • Compatible with most PDF-viewing applications;
  • Fill out the form in our online filing application.

Download a fillable version of Form AG-03309 by clicking the link below or browse more documents and templates provided by the Minnesota Department of Agriculture.

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Download Form AG-03309 "Rural Finance Authority Loan Agreement and Note for Rfa Farm Opportunity Loan Participation Program (Only)" - Minnesota

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625 ROBERT STREET NORTH, SAINT PAUL, MN 55155-2538
WWW.MDA.STATE.MN.US
R U R A L F I N A N C E A U T H O R I T Y
Rural Finance Authority, Ph: 651-201-6004
Rural Finance Authority Loan Agreement and Note for RFA Farm
Opportunity Loan Participation Program (Only)
Lender:
Lender Loan #:
Lender Address:
City:
State:
Zip:
Borrower(s):
1.1
PARTIES
In this Agreement, the words “I” and “my” refer to the Borrower(s) named above. If more than one Borrower is named, “I”
shall mean “we”. “You” means the (Lender). “RFA” means the State of Minnesota, through the Minnesota Rural Finance
Authority, which may be participating with the (Lender) in this loan.
1.2
PARTICIPATION
The RFA may be participating in this Farm Opportunity Loan Program with you, to the extent of the lesser of: 45% of the
principal or $ $100,000 maximum for an individual or 45% of the principal or $ $250,000 maximum per group.
1.3
LOAN TERMS
I have borrowed from you and agree to repay to you the principal sum of $__________________________ with interest
on the unpaid balance of that sum (the “Total Amount”). The pro-rata sharing of the Total Amount of the debt shall be as
follows:
A. Lender
Lender Participation Amount: $_________________
Terms:
Check the box if the Lender interest is evidenced by a separate document. In which case, a copy of the
document evidencing the Lender interest is attached hereto as EXHIBIT A and is incorporated herein by reference.
Regular Payment: $_________________
Initial Interest Rate: ______%
B. RFA
RFA Participation Amount: $_________________
Regular Payment: $_________________
Initial Interest Rate: ______%
Interest is computed on a 365/365 or 360/360 (circle one) simple interest basis.
The RFA’s interest rate on the RFA Amount shall be fixed for the period of the participation. However, said rate may be
increased at any time during the period of participation (which is a maximum of 10 years unless approved in writing by RFA)
if I am found to be in default (see sections 1.7 and 1.9 below).
In accordance with the Americans with Disabilities Act, this information is available in alternative forms of communication upon request by calling
AG-03309
651-201-6000. TTY users can call the Minnesota Relay Service at 711. The MDA is an equal opportunity employer and provider.
4/9/21
Page 1 of 3
625 ROBERT STREET NORTH, SAINT PAUL, MN 55155-2538
WWW.MDA.STATE.MN.US
R U R A L F I N A N C E A U T H O R I T Y
Rural Finance Authority, Ph: 651-201-6004
Rural Finance Authority Loan Agreement and Note for RFA Farm
Opportunity Loan Participation Program (Only)
Lender:
Lender Loan #:
Lender Address:
City:
State:
Zip:
Borrower(s):
1.1
PARTIES
In this Agreement, the words “I” and “my” refer to the Borrower(s) named above. If more than one Borrower is named, “I”
shall mean “we”. “You” means the (Lender). “RFA” means the State of Minnesota, through the Minnesota Rural Finance
Authority, which may be participating with the (Lender) in this loan.
1.2
PARTICIPATION
The RFA may be participating in this Farm Opportunity Loan Program with you, to the extent of the lesser of: 45% of the
principal or $ $100,000 maximum for an individual or 45% of the principal or $ $250,000 maximum per group.
1.3
LOAN TERMS
I have borrowed from you and agree to repay to you the principal sum of $__________________________ with interest
on the unpaid balance of that sum (the “Total Amount”). The pro-rata sharing of the Total Amount of the debt shall be as
follows:
A. Lender
Lender Participation Amount: $_________________
Terms:
Check the box if the Lender interest is evidenced by a separate document. In which case, a copy of the
document evidencing the Lender interest is attached hereto as EXHIBIT A and is incorporated herein by reference.
Regular Payment: $_________________
Initial Interest Rate: ______%
B. RFA
RFA Participation Amount: $_________________
Regular Payment: $_________________
Initial Interest Rate: ______%
Interest is computed on a 365/365 or 360/360 (circle one) simple interest basis.
The RFA’s interest rate on the RFA Amount shall be fixed for the period of the participation. However, said rate may be
increased at any time during the period of participation (which is a maximum of 10 years unless approved in writing by RFA)
if I am found to be in default (see sections 1.7 and 1.9 below).
In accordance with the Americans with Disabilities Act, this information is available in alternative forms of communication upon request by calling
AG-03309
651-201-6000. TTY users can call the Minnesota Relay Service at 711. The MDA is an equal opportunity employer and provider.
4/9/21
Page 1 of 3
1.4
RFA REPAYMENT SCHEDULE
I agree to repay the RFA Amount plus interest on a ______ year amortization schedule. However, the RFA Amount will be due
and payable in full (principal balance + accrued interest) on ____________________________.
The first payment of the RFA Amount shall be due __________________, with an additional ________(#)
payments due_________________ (type in annually/monthly/quarterly/semi-annually) thereafter on the _____ day of the
corresponding month.
 Unless I am in default, all repayments of the RFA Amount shall be applied first to interest and then to principal. If I am
in default, you may apply the repayments of the RFA Amount in any manner you choose. Payments received by you
more than fifteen (15) days after the due date shall incur a late fee penalty. The RFA late fee is 1.0% per month of the
payment due.
 I may make additional principal payments at any time or pay the entire principal balance without paying a
prepayment penalty. Any additional principal payments which you receive by the terms of this note will not reduce
the amount of the scheduled repayments, but will operate to repay the entire indebtedness at an earlier date by
reducing the number of future principal installments.
1.5
RECORDS
Your records on what I owe are binding upon me and may be admitted in a legal proceeding against me.
1.6
FINANCIAL INFORMATION
Annually, upon the anniversary of this Agreement, I agree to mail to you signed and updated financial statements as agreed
upon. Further, at any other time requested, with 30 days written notice, I will sign and deliver to you current financial
statements (not to exceed 60 days in age).
1.7
CERTIFICATION
I understand that because the RFA participates in my debt there are certain specific eligibility requirements which must be
met by me and certified by me in the application to the RFA. If I fail to remain in compliance with any state statute or rules
governing my specific program, you or the RFA may declare my participation to be in default (see section 1.9 below).
1.8
COLLATERAL
As security for the debt and any other obligations to you under this agreement or the covenants of the loan, I am signing today
and granting to you a lien on collateral as agreed upon by you and the RFA (the “Lien”).
1.9
DEFAULT
You or the RFA may declare that I am in default if:
A.
I fail to pay any of the principal or interest on the debt when properly demanded by you, in accordance with my
repayment obligations.
B.
Any statement made by me in connection with the debt proves to have been misleading when it was made.
C.
I fail to perform any promise contained in this Agreement including section 1.7 above; the Lien; or any other agreement
relating to this debt or the program in which I am taking part.
 Failure to bring this Agreement into compliance within 30 days upon receiving a written notice from you or the RFA
may, at the RFA’s sole discretion, result in the forfeiture of the initial RFA participation interest rate. The new RFA
penalty rate, if imposed by the RFA, shall be equal to the lower of: (i)the highest interest rate currently being charged
on its participations plus 0.5% (also see section 2.0); or (ii) the highest amount allowed by law.
2.0
PAYMENT DUE UPON DEFAULT
If you or the RFA declare that I am in default, the entire balance of the debt may become immediately due and payable, at
either’s option. No written notice to me is required of you or the RFA. I agree to pay any and all expenses, including reasonable
attorneys’ fees, incurred in enforcing this Agreement, plus accrued interest at the penalty rate (see section 1.9 above).
In accordance with the Americans with Disabilities Act, this information is available in alternative forms of communication upon request by calling
AG-03309
651-201-6000. TTY users can call the Minnesota Relay Service at 711. The MDA is an equal opportunity employer and provider.
4/9/21
Page 2 of 3
2.1
FAILURE TO PERFORM
If I fail to perform any of my promises in this Agreement or the Mortgage, you may perform for me if you choose. I will pay
you upon demand all reasonable expenses you incur in performing for me, plus interest at the same rate applied to the
principal I owe you.
2.2
NO WAIVER
Any failure or delay on your part in exercising any of your rights will not prohibit you from exercising them at a later time
or exercising any other right or remedy. You may extend the time for payment of my debt or release any security (including
security pledged by any guarantor of my debt) without affecting your rights under this Agreement or the Lien.
2.3
INTERPRETATION OF OUR UNDERSTANDING
This Agreement expresses our entire understanding. I have read this Agreement and rules for my program fully and am not
relying on any oral or other written statements by you or your agents. Any previous statements, whether oral or in writing,
are superseded by this Agreement. Any amendment to this Agreement must be done in writing. If there are two or more
borrowers named in this Agreement, obligations of this Agreement are joint and several (which means you may enforce all
the obligations against any one of the borrowers or against all of them).
2.4
SHARING OF INFORMATION AND CONSENT TO REVIEW RECORDS
I acknowledge that the RFA shall become a participant in my debt and I hereby consent to you sharing information about
me (including but not limited to my financial statements) and about my debt with its authorized employees or agents. In
addition, I consent to and authorize you to allow the RFA, by and through its employees and authorized agents, to inspect
and review any and all information that you may have regarding any debt that I may have with you even though the RFA
may not have any interest in such debt. I understand that the RFA’s authorized employees or agents are required by law to
keep certain information about me private or confidential, or may be required by law to make certain information public.
2.5
HEADINGS
The headings contained in this Agreement are for convenience only and shall not affect the interpretation of any provisions
of this Agreement.
2.6
EFFECTIVENESS
This Agreement will continue until I pay the amount of this debt and all other amounts secured by the Mortgage. If any part
of this Agreement is declared invalid, the rest of the Agreement will remain in effect.
2.7
LAW OF MINNESOTA TO GOVERN
This Agreement and the rights and duties described in this Agreement will be governed by, and interpreted in accordance
with the laws of Minnesota.
This note is secured by _____________________________________________ dated:________________________, 20_____.
I sign certifying that I understand and agree to all the provisions of this Agreement.
Borrower:
Borrower:
Address:
City:
State:
Zip:
Co-signer:
Co-signner:
(If Required)
In accordance with the Americans with Disabilities Act, this information is available in alternative forms of communication upon request by calling
AG-03309
651-201-6000. TTY users can call the Minnesota Relay Service at 711. The MDA is an equal opportunity employer and provider.
4/9/21
Page 3 of 3
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