INTEREST ADJUSTMENT

Subpart 1. Eligibility requirements. In order to be eligible for an interest adjustment, an applicant must meet the requirements of Minnesota Statutes, section 222.58 , subdivision 5a. Subp. 2. Repayment procedures. The borrower shall reimburse the commissioner for any amounts paid as an interest adjustment within one year after the final payment to a lending institution is due on the loan. The reimbursement to the commissioner may be made in equal installments over the period of one year or in a single payment at the close of that year. If the borrower has no proprietary right in the property to be rehabilitated, then a promissory note must be negotiated between the borrower and the commissioner prior to the granting of a loan guarantee to insure repayment of the interest adjustment.