Minnesota Legislature
SF 340
as introduced - 88th Legislature (2013 - 2014) Posted on 05/23/2013 04:24pm
Bill Text Versions
| Engrossments | ||
|---|---|---|
| Introduction | Posted on 02/06/2013 |
Current Version - as introduced
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A bill for an act
relating to economic development; modifying loans to development authorities;
amending Minnesota Statutes 2012, section 116J.5764, subdivision 1.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2012, section 116J.5764, subdivision 1, is amended to
read:
Subdivision 1.
Terms.
Loans to development authorities for demolition costs may
be made by the commissioner subject to the following terms and conditions:
(1) the agreement to repay the loan deleted text begin mustdeleted text end new text begin maynew text end be a general obligation of the
development authority, payable primarily from a dedicated source of revenue,new text begin or other
security subject to review and approval by the commissioner,new text end and the development
authority must deliver its bond or note to the commissioner to secure the loan;
(2) the term of the loan may not exceed 15 years;
(3) the loan shall bear interest at a rate equal to two percent, but interest will not
accrue during the first two years of the loan term;
(4) the development authority shall make semiannual interest payments and annual
principal payments beginning in the third year of the loan until the end of the term;
(5) the principal amount of a loan may not exceed $1,000,000;
(6) loan proceeds shall be disbursed for eligible demolition costs as incurred or paid
by the borrower and upon submission of invoices and other supporting documentation
satisfactory to the commissioner; and
(7) an eligible borrower shall establish a dedicated source of revenue for repayment
of the loan.