The bill amends Minnesota Statutes 2022, 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 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 also specifies that repurchase agreements or contracts for properties being repurchased under section 282.261 are not eligible for the modified interest rate. Overall, the bill aims to provide a more favorable interest rate structure for property owners who confess judgment on delinquent taxes, while ensuring that the process remains clear and regulated.

Statutes affected:
Introduction: 279.37