2025 Session
Last amended: 1981 session
§ 334.061 — Agricultural Credit Corporations; Interest Rate Limitations
Plain-Language Summary
State-chartered agricultural credit corporations can charge interest on loans at up to 4.5% above the Federal Reserve discount rate on 90-day commercial paper.
334.061 AGRICULTURAL CREDIT CORPORATIONS; INTEREST RATE LIMITATIONS.
A state chartered agricultural credit corporation operating under United States Code, title 12, sections 1401, 1402, 1403, and 1404 may make a charge on its loans at a rate of not more than 4-1/2 percent in excess of the discount rate on 90-day commercial paper in effect at the Federal Reserve Bank in the Federal Reserve District encompassing Minnesota.
History:
1976 c 158 s 1; 1981 c 347 s 3
History: History: 1976 c 158 s 1; 1981 c 347 s 3
Practical Notes
This allows agricultural credit corporations to charge higher interest than the general 8% cap, with the rate tied to the Federal Reserve discount rate. These are specialized lenders that provide financing to farmers and agricultural businesses.