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 properties 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 average prime rate charged by banks over a six-month period ending on September 30 of that year, rounded to the nearest full percent. This replaces the previous provision that set the interest rate at two percent above the prime rate. The bill also clarifies that the interest rate determined by the commissioner is fixed for the duration of the judgment and must be certified to the county auditor by November 1 each year.

Additionally, the bill includes a new effective date provision stating that the changes will take effect the day following final enactment. It 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. The bill also specifies that repurchase agreements for properties being repurchased under section 282.261 are not eligible for the modified interest rate.

Statutes affected:
Introduction: 279.37