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 average prime rate charged by banks for the 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 new interest rate will take effect on January 1 of the following year, and the commissioner's determination will not be subject to the Administrative Procedure Act.

Additionally, the bill includes a provision that allows qualified property owners to enter into a second confession of judgment at the newly established interest rate. It also clarifies that repurchase agreements for properties being repurchased under section 282.261 are not eligible for this interest rate. The bill specifies that the effective date of these changes will be the day following final enactment.

Statutes affected:
Introduction: 279.37