SF 3825

as introduced - 90th Legislature (2017 - 2018) Posted on 03/27/2018 08:58am

A bill for an act
relating to local government; modifying the cap on loans to certain local units of
government from a rural electric cooperative or the USDA; making a technical
change; amending Minnesota Statutes 2016, section 465.73.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2016, section 465.73, is amended to read:

465.73 LOAN FROM, SECURED BY U.S. AGRICULTURE DEPARTMENT
AGENCY.

For purposes of constructing, repairing, or acquiring city halls, town halls, fire halls or
fire or rescue equipment, or libraries or child care facilities if otherwise authorized by law,
a new text begin statutory city, home rule charter new text end city, county, or town may borrow not to exceed deleted text begin $450,000 deleted text end new text begin
$750,000 new text end from (i) funds granted to a rural electric cooperative organized under chapter
308A by the United States Department of Agriculture Rural Business-Cooperative Service
or (ii) directly from or in the form of funds guaranteed by the Rural Housing Service or
other agency of the United States Department of Agriculture by a note secured by a mortgage
or other security agreement on the property purchased with the borrowed funds. The city,
county, or town may pledge its full faith and credit and assign or pledge the revenues, if
any, from the facilities or equipment so financed together with any other properly available
funds to secure the loan. The obligation of the note is not to be included when computing
the net debt of the city, county, or town, nor is the approval of the voters required for the
issuance of the note.