The bill amends Minnesota Statutes 2024, section 279.37, subdivision 2, to modify the interest rate charged on confessions of judgment for homestead property. Specifically, it establishes that for property qualifying under section 279.03, subdivision 2, paragraph (b), the interest rate for offers made to confess judgment will be set by the commissioner at the greater of five percent or the prime rate charged by banks, rounded to the nearest full percent, with a cap at the maximum annual rate specified under section 279.03, subdivision 1a. This change replaces the previous provision that allowed for an interest rate of two percent above the prime rate. The new interest rate will take effect on January 1 of the following year, and the commissioner is required to determine and certify the rate annually.

Additionally, the bill includes a new effective date clause stating that the changes will take effect the day following final enactment. The bill outlines the process for property owners to confess judgment, including the requirement to tender a portion of the delinquent taxes and agree to pay the remaining balance in installments with the specified interest rate. It also clarifies definitions related to the prime rate and default, ensuring that property owners are aware of their obligations under the new provisions.

Statutes affected:
Introduction: 279.37