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469 - 2015 Minnesota Statutes Page 10 of 15 <br /> expedient, after acquiring the property,to make it suitable and attractive as a tract for <br /> economic development.An authority may lease some or all of its lands or property and <br /> may set up local improvement districts in all or part of an economic development district, <br /> Subd. 19. Loans in anticipation of bonds. After authorizing bonds under sections <br /> 469.102 and 469.103,an authority may borrow to provide money immediately required for <br /> the bond purpose.The loans must not exceed the amount of the bonds. The authority shall <br /> by resolution decide the terms of the loans. The loans must be evidenced by negotiable <br /> notes due in not more than 12 months from the date of the loan payable to the order of the <br /> lender or to bearer,to be repaid with interest from the proceeds of the bonds when the <br /> bonds are issued and delivered to the bond purchasers. The loan must not be obtained from <br /> any commissioner of the authority or from any corporation, association, or other institution <br /> of which an authority commissioner is a stockholder or officer. k <br /> Subd. 20. Use of proceeds. The proceeds of obligations issued by an authority under <br /> section 469,103 and temporary loans obtained under subdivision 19 may be used to make <br /> or purchase loans for economic development facilities that the authority believes will <br /> require financing.To make or purchase the loans,the authority may enter into loan and <br /> related agreements,both before and after issuing the obligations, with persons,firms, <br /> public or private corporations,federal or state agencies, and governmental units under <br /> terms and conditions the authority considers appropriate.A governmental unit in the state <br /> may apply,contract for,and receive the loans. Chapter 475 does not apply to the loans. k <br /> Subd.21. [Repealed,2000 c 490 art 11 s 44] <br /> Subd.22. Secondary market. An authority may sell,at private or public sale,at the <br /> price or prices determined by the authority, any note,mortgage,lease, sublease, lease <br /> purchase,or other instrument or obligation evidencing or securing a loan made for the <br /> purpose of economic development,job creation,redevelopment, or community <br /> revitalization by a public agency to a business,for-profit or nonprofit organization,or an <br /> r <br /> individual. <br /> Subd.23. Supplying small business capital. Notwithstanding any contrary law,the <br /> authority may participate with public or private corporations or other entities,whose <br /> purpose is to provide seed or venture capital to small businesses that have facilities located <br /> or to be located in the district.For that purpose the authority may use not more than ten <br /> percent of available annual net income or$1,000,000 annually,whichever is less,to invest <br /> in equities or acquire equity-type investments. These investments can be made directly in <br /> eligible corporations or entities or acquired through participation in a public or private <br /> seed or venture capital fund. The participation by the authority may not exceed in any year <br /> 25 percent of the total amount of funds provided for venture or seed capital purposes by all <br /> of the participants. The corporation, entity,or fund shall report in writing each six months <br /> to the commissioners of the authority all investments and other action taken by it since the <br /> last report. Funds contributed to the corporation or entity must be invested pro rata with <br /> each contributor of capital taking proportional risks on each investment.As used in this <br /> subdivision, the term"small business" has the meaning given it in section 645.445, <br /> subdivision 2. <br /> History: 1987 c 291 s 102; 1988 c 580 s 5; 1991 c 295 s 2; 1992 c 363 art I s 13; <br /> 2000 c 418 art 2 s 7;2006 c 214 s 20;2007 c 148 art 3 s 30; 2010 c 389 art 7 s 5; 2014 c <br /> 196 art 3 s 3 <br /> 469.102 GENERAL OBLIGATION BONDS. <br /> Subdivision 1. Authority; procedure. An economic development authority may <br /> issue general obligation bonds in the principal amount authorized by two-thirds majority <br /> vote of its city's council.The bonds may be issued in anticipation of income from any <br /> source.The bonds may be issued: (1)to secure finds needed by the authority to pay for <br /> acquired property or(2)for other purposes in sections 469.090 to 469.108. The bonds <br /> must be in the amount and form and bear interest at the rate set by the city council. Except <br /> https://www.revisor.mn.gov/statutes/?id=469&view=chapter 7/7/2016 <br />