A Farmer's Guide to Minnesota Lending Law

This is the Farmer's Guide to Minnesota Lending Law, from the Farmer's Legal Action Group. To download the entire 258-page booklet, click here. For your convenience, the book has been divided into smaller sections. Click the links below for information about your current problem. You may have to scroll to find the information you want.

Chapter One: Introduction

I. Credit and farming

II. Keeping a written record of credit arrangements

III. Getting help — attorneys and advocates

IV. What this book covers

Chapter Two: The Statute of Frauds

I. Introduction

II. What agreements must be in writing

III. If the agreement is not in writing

Chapter Three: Mortgages and Contracts for Deed

I. Mortgages and contracts for deed — a basic introduction

II. Mortgages and contracts for deed — basic terms

III. Mortgage foreclosures

IV. Cancellation of contracts for deed

V. Minnesota right of first refusal

VI. Federal right of first refusal for Farm Credit Services (FCS) borrowers

VII. Rights of FmHA or FSA borrowers .

Chapter Four: Operating and Equipment Loans, Secured Creditors, and Repossession

I. Introduction

II. Creating secured debt — loan agreements and promissory notes

III. Creating security interests

IV. Collateral for secured debts

V. Default and repossession

VI. After repossession — what happens to the property

VII. Debtor redemption rights

VIII. Getting new credit

Chapter Five: Unsecured Credit and Judgments

I. Introduction

II. How creditors get money judgments

III. Effects of a money judgment

IV. Farmer-lender mediation must be offered before enforcement of a judgment

V. Enforcing money judgments

VI. Discovering assets

VII. Satisfied judgments

VIII. Right of redemption

IX. Exemptions under Minnesota law

Chapter Six: Lease Agreements

I. Introduction

II. Real estate leases

III. Leases of goods — equipment and livestock

Chapter Seven: Farmer-Lender Mediation

I. Introduction

II. Eligibility for mandatory farmer-lender mediation

III. Farmer-lender mediation notices

IV. Requesting mediation

V. Mediation proceeding notice — sent to farmer and all identified creditors

VI. Mediation suspends creditor actions to collect debt

VII. The mediator VIII. Preparing for mediation

IX. The mandatory farmer-lender mediation process

X. Obligations in mediation

Chapter Eight: Bankruptcy

I. Introduction

II. The purpose of bankruptcy

III. Planning for bankruptcy

IV. Two general types of bankruptcy — liquidation and reorganization

V. Important bankruptcy features

Chapter Nine: Income Tax Considerations

I. Introduction

II. Debt forgiveness can create a tax liability

III. Sale or transfer of assets — including surrender of property to creditors and foreclosures

IV. Taxes and bankruptcy

V. More information

Chapter Ten: Alternative Dispute Resolution (ADR)

I. Introduction

II. Types of ADR

III. When the ADR requirement is triggered

IV. How ADR works

V. Paying for ADR

VI. ADR and farmer-lender mediation

Chapter Eleven: Scam Artists Targeting Farmers