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469 - 2015 Minnesota Statutes Page 12 of 15 <br /> revenue bonds may be issued to provide money to pay to acquire land needed to operate <br /> the authority,to purchase or construct facilities, to purchase,construct, install,or furnish <br /> capital equipment to operate a facility for economic development of any kind within the <br /> city, or to pay to extend,enlarge, or improve a project under its control.The issued bonds <br /> may include the amount the authority considers necessary to establish an initial reserve to <br /> pay principal and interest on the bonds.The authority shall state in a resolution how the <br /> bonds and their attached interest coupons are to be executed. <br /> Subd.2. Form. The bonds of each series issued by the authority under this section <br /> shall bear interest at a rate or rates, shall mature at the time or times within 30 years from <br /> the date of issuance,and shall be in the form,whether payable to bearer,registrable as to <br /> principal, or fully registrable,as determined by the authority. Section 469.102,subdivision <br /> 6, applies to all bonds issued under this section,and the bonds and their coupons, if any, <br /> when payable to bearer, shall be negotiable instruments. <br /> Subd.3. Sale. The sale of revenue bonds issued by the authority shall be at public or <br /> private sale.The bonds may be sold in the manner and for the price that the authority <br /> i <br /> determines to be for the best interest of the authority.The bonds may be made callable, (; <br /> and if so issued,may be refunded. I <br /> Subd.4. Agreements. The authority may by resolution make an agreement or <br /> covenant with the bondholders or their trustee. The authority must first decide that the <br /> agreement or covenant is needed or desirable to do what the authority may do under this <br /> section and to assure that the revenue bonds are marketable and promptly paid. <br /> Subd. 5. Revenue pledge. In issuing general obligation or revenue bonds,the <br /> authority may secure the payment of the principal and the interest on the bonds by a pledge <br /> of and lien on authority revenue. The revenue must come from the facility to be acquired, <br /> constructed,or improved with the bond proceeds or from other facilities named in the <br /> bond-authorizing resolutions.The authority also may secure the payment with its promise <br /> to impose,maintain,and collect enough rentals,rates,and charges,for the use and <br /> occupancy of the facilities and for services furnished in connection with the use and <br /> occupancy,to pay its current expenses to operate and maintain the named facilities,and to <br /> produce and deposit sufficient net revenue in a special fund to meet the interest and <br /> principal requirements of the bonds,and to collect and keep any more money required by <br /> the resolutions.The authority shall decide what constitutes"current expense" under this <br /> subdivision based on what is normal and reasonable under generally accepted accounting <br /> principles.Revenues pledged by the authority must not be used or pledged for any other <br /> authority purpose or to pay any other bonds issued under this section or under section c <br /> 469.102, unless the other use or pledge is specifically authorized in the bond-authorizing <br /> resolutions. <br /> Subd.6. Not city debt. Revenue bonds issued under this section are not a debt of <br /> the authority's city nor a pledge of that city's frill faith and credit. The bonds are payable <br /> only from project revenue as described in this section.A revenue bond must contain on its <br /> face a statement to the effect that the economic development authority and its city do not <br /> have to pay the bond or the interest on it except from revenue and that the faith, credit, and u <br /> taxing power of the city are not pledged to pay the principal of or the interest on the bond. <br /> Subd. 7. Not applicable. Sections 469.153,subdivision 2,paragraph(e),and <br /> 469.154,subdivisions 3,4, and 5 do not apply to revenue bonds issued under this section <br /> and sections 469.152 to 469.165 if the interest on the revenue bonds is subject to both state <br /> and federal income tax or if the revenue bond proceeds are not loaned by the authority to a <br /> private person. <br /> Subd. 8. Tax increment bonds. Obligations secured or payable from tax increment <br /> revenues and issued pursuant to this section or section 469.102 are subject to the <br /> provisions of section 469.178. <br /> History: 1987 c 291 s 104;2006 c 259 art 9 s 8 <br /> https://www.revisor.mn.gov/statutes/?id=469&view=chapter 7/7/2016 <br />